IL SB1809

Amends the Illinois Public Aid Code to add penalty provisions for hospitals that fail to meet a $40,000,000 reduction in Medical Assistance expenditures related to preventable readmissions by June 30, 2013.

Hospitals not meeting their individual established threshold must pay a penalty equal to one-half the difference between their actual readmission liability and their threshold amount.

Penalty payments shall be deposited into the Healthcare Provider Relief Fund, and must be doubled if the Centers for Medicare and Medicaid Services determines the penalties constitute an impermissible healthcare-related tax.

Defines expenditures subject to the reduction target as General Revenue Fund-based expenditures only.

Takes effect immediately upon becoming law.