Performance Audit of the Illinois Department of Healthcare & Family Services’ Prompt Payment Act Compliance & Medicaid Payment Process

May 2008 The Illinois Auditor General conducted the performance audit to evaluate Department of Healthcare & Family Services (HFS) Medicaid claims processing. The auditors concluded that Medicaid claims received in each of the four past fiscal years, when added to unpaid bills carried over from the prior year, have exceeded the funds available to pay providers in a timely manner. On average, from fiscal year 2005 to 2007, about $1.5 billion of unpaid medical claims have been carried over into the next fiscal year. In fiscal year 2006, it took HFS about six days to process claims, but it . . .