Illinois hospital cuts ties with Medicaid plans, citing low payments

Rockford, Ill.-based Mercyhealth said it is no longer accepting patients who are insured by several private Medicaid insurers because of low reimbursement, according to local news station WIFR.

The decision will affect patients with Medicaid plans through IlliniCare, Meridian, Molina Healthcare and Blue Cross Blue Shield.

Mercyhealth said a reduction of income from Medicaid and other health insurance providers, combined with COVID-19 challenges, led to the decision.

The hospital's agreements with IlliniCare, Meridian and Molina will end July 21, and its agreement with BCBS will end Oct. 22.

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