The Orthopedic Center of Illinois in Springfield has a new requirement: patients with insurance through the State Employees' Group Insurance Program must pay at least half of their expected bill upfront, according to a report from The State Journal-Register.
The practice updated its payment policy after the state delayed payments. The State Employees' Group Insurance Program has $3.66 billion that has been overdue for 18 months or more. The policy is applied to elective surgeries only and the 50 percent upfront payment in some cases covers the patient's responsibility and part of the state's share; overpayments are refunded when the insurance plan pays, according to the report.
The article also reports Springfield Clinic now bills patients with state insurance for their responsibility right away instead of waiting for reimbursement from the state, as the state owes Springfield Clinic more than $68 million.
The state is currently using premium payments to pay medical bills, but the premium payments total around $436 million per year. Additionally, the state of Illinois has been unable to pass a permanent budget plan, which further delays payment.