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November 10, 2017

Update on State of Illinois Health and Dental Claims Payment Delay

Central Management Services has released the following announcement regarding the insurance claim payment delay:

The State of Illinois issued $6B of bonds in late October/early November, and $3.9B of these funds have been designated to fund group health insurance.  The Comptroller’s Office has specified that all bond funds shall go toward principle balances only.  In accordance with the law, CMS will use appropriate funding sources to make late interest payments due as a result of the delayed payments.

CMS expects payments to be released to health insurers within the next week. These payments will significantly reduce our backlog, which is currently in excess of $5B.  We have been paying claims from 2015 in some instances, and we expect to bring all group health insurance provider payments up through mid-2017.

Note CMS remains committed to ensuring providers are paid on a “first in, first out” basis.  Members’ EOB’s (Explanation of Benefits) will be available as payments are made.  If your provider required you to pay upfront prior to rendering services, you are eligible for the late payment interest accrued.  Please work with your healthcare provider if you believe you are eligible to receive interest. 

Human Resources Services will continue to provide updated information as it becomes available.  Questions on this announcement should be directed to Central Management Services at (800) 442-1300.