Tax on Managed Care Organizations proposed by Pritzker - WSIL-TV 3 Southern Illinois

Tax on Managed Care Organizations proposed by Pritzker

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WSIL -- A large portion of the revenue Governor J.B. Pritzker wants to raise in the next year comes from taxing Managed Care Organizations (MCOs).

Managed Care Organizations help coordinate coverage for 80 percent of the state's Medicaid patients, according to Ben Calcaterra, a lobbyist and a pharmacist with Logan Primary Pharmacy.

Calcaterra said MCOs make plenty of profits off of prescription drug sales and Pritzker's plan targets those profits to pay for the state's Medicaid costs.

"Medicaid is a struggling program that needs all the funds possible," Calcaterra said. "We have a very large Medicaid enrollment and it's a great program, we just need better management of that program and I think getting these funds will help the state manage those patients and those MCOs a lot better than they're currently doing."

Calcaterra worries the proposal could lead to MCOs passing down their costs to patients, if lawmakers don't word it carefully enough.

Pritzker said the tax would raise $390 million for the Healthcare Provider Relief Fund.

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