IL SB3175

Creates the Medicaid Billing for Inmate Inpatient Hospital and Professional Services Act to reduce state correctional healthcare costs by requiring hospitals and medical providers to bill Medicaid for eligible inmate services.

Requires the state to cap all correctional healthcare reimbursement rates at no more than 110% of federal Medicare reimbursement rates for both contract and non-contract payments.

Mandates implementation of clinical code editing technology, predictive modeling and analytics technologies, and claims audit and recovery services to detect, prevent, and recover improper payments.

Requires the state to issue a request for information by December 31, 2012, followed by a request for proposals within 90 days to select contractors through competitive procedures under the Illinois Procurement Code.

Requires reporting to the General Assembly within 3 months after completion of each implementation year (years one through three) documenting implementation, savings achieved, return on investment, and impact on beneficiaries and providers.