Audit shows Pritzker Administration vastly underestimated the cost of immigrant healthcare program. On Wednesday, the Illinois Auditor General released the results of an audit of the Health Benefits for Immigrant Seniors and Adults programs, which showed that the State of Illinois has already spent over $1.6 billion in taxpayer funds on health benefits for undocumented immigrants.
According to the Auditor General’s report released on February 26, Governor Pritzker’s administration vastly underestimated the actual cost and actual enrollment of the HBIS and HBIA programs.
Regarding the initial cost estimates for all three fiscal years 2021, 2022, and 2023:
- for HBIS (65+) the total estimate was $224.0 million, while the actual total cost was $412.3 million or 84 percent higher;
- for HBIA (55-64) the total estimate was $58.4 million, while the actual total cost was $223.1 million or 282 percent higher; and
- for HBIA (42-54) the total estimate was $68.0 million, while the actual total cost was $262.2 million or 286 percent higher.
Fiscal Year 2025 has an estimated cost of $629 million, which was not included in the audit, bringing the total estimated cost of the programs to $2.2 billion.
Regarding the estimated number of enrollees, in FY23:
Background on Health Benefits for Immigrant Seniors and Adults. On November 7, 2023, the Legislative Audit Commission adopted Resolution Number 165, which directed the Office of the Auditor General to conduct a performance audit of the Illinois Department of Healthcare and Family Services’ (HFS) administration of the program of Medicaid services and coverage provided to undocumented immigrants from FY21-FY23.
In 2020, Illinois began to expand healthcare coverage to noncitizen immigrants. The first expansion, the Health Benefits for Immigrant Seniors program (HBIS), began in December 2020, and covered adult seniors 65 years of age and older. The second expansion began in May 2022 and covered immigrant adults between the ages of 55 and 64. The most recent expansion began in July 2022 and covered immigrant adults between the ages of 42 and 54. These two expansions are both part of the Health Benefits for Immigrant Adults program (HBIA).
SB 1298/P.A. 103-102 (FY24 Medicaid Omnibus) included a provision that allowed HFS to implement emergency rules to provide for the expeditious and effective ongoing implementation of HBIA/HBIS. In the following months of 2023, the Pritzker Administration implemented enrollment caps and other cost saving measures.
House Republicans call for end of taxpayer-funded health benefits for illegal immigrants.
House Minority Leader Tony McCombie released the following statement in response to the Illinois Auditor General’s report on the state run HBIA/HBIS program for undocumented immigrants, which far exceeded enrollment and cost estimates:
“House Republicans warned about the costly expansion of this program when it was first exposed last year. We could not afford it then, and we cannot afford it now. Yet, Democratic leadership forced taxpayers to shoulder the burden of this reckless spending for non-citizens, pushing our state’s finances to the brink.
“Beyond the overwhelming cost, reports of fraud and abuse make it even clearer that this program must end. There is no need to wait until the next fiscal year—immediately shut it down and protect Illinois taxpayers.”
Assistant Minority Leader C.D. Davidsmeyer called the audit findings shocking and again demanded that the State immediately end the massively expensive program.
“As the chief sponsor of House Bill 1456 to end taxpayer-funded health benefits for illegal immigrants, I already knew that this program was running way over the initial cost estimates,” Rep. Davidsmeyer said. “But even I was shocked by audit findings that showed cost overruns of up to 286 percent higher than the Pritzker administration’s initial estimates. At a time when our State is facing a multi-billion-dollar budget deficit, we simply cannot afford to spend over $1.6 billion on this giveaway to illegal immigrants.”
Representative Davidsmeyer discussed the secretive nature of how these programs were initially created and expanded in Illinois.
“The HBIS and HBIA programs were never fully debated and have never received stand-alone votes by the General Assembly. The initial HBIS program, along with the HBIA expansions, were slipped into several different Budget Implementation bills and a Medicaid Omnibus bill. I strongly believe that these massively expensive programs would never have passed as stand-alone bills,” said Davidsmeyer.
“We couldn’t afford free healthcare for illegal immigrants when the first HBIS program was passed during the COVID special session in 2020. And we certainly can’t afford it now. The State of Illinois needs to stop this giveaway immediately. Shut it down now!”
State Representative Amy Elik released the following statement in response to the Illinois Auditor General’s report on the state-run HBIA/HBIS program for undocumented immigrants, which far exceeded enrollment and cost estimates:
“Last year, I, through the Legislative Audit Commission, directed the Auditor General to conduct an audit of the Health Benefits for Immigrant Seniors and Adults (HBIA/HBIS), and the results were released today and are alarming. As House Republicans predicted, the audit found astounding differences in the estimates of the program versus the actual enrollment and expenses. We must do better. Now is the time and this is the opportunity to work for taxpayers, not promote fraud and overspending.”
State Representative Dennis Tipsword issued a statement following the Health Benefits for Immigrant Seniors and Adults audit report that was released this week by the Illinois Auditor General’s Office.
“House Republicans repeatedly warned the Democrats and Governor Pritzker that providing free healthcare benefits to illegal immigrants was unsustainable and unfair to the taxpayers and residents of Illinois. Not only did the Auditor General find out that the state egregiously overspent on healthcare benefits, but there were also thousands of improper enrollments in the program.
“It is utterly astounding how the Democrats and the Governor continue to recklessly waste billions of dollars of taxpayer money. This audit report is shocking on all levels, and one can only wonder if the grossly inaccurate estimated costs for this program were the result of office mismanagement or sheer incompetence. Why are we continuing to spend billions of taxpayer dollars on free healthcare and benefits for people who enter our country illegally? The Health Benefits for Immigrant Seniors and Health Benefits for Immigrant Adults programs must be shut down immediately to protect Illinois taxpayers.”
RELIEF FOR WORKING FAMILIES
House Republicans introduce measures to alleviate financial strain on working families. Illinois working families face an unprecedented number of financial hurdles that a group of House Republican legislators want to help them overcome. The lawmakers unveiled a package of bills aimed at providing much needed financial relief for Illinois’ working families.
The Relief for Working Families legislative package contains proposals which encourage entrepreneurship, help tipped employees keep all of their gratuities, and create opportunities for technical skill-building that can lead to high-paying jobs.
“Our Relief for Working Families bill package was crafted in order to reduce the financial burdens placed on middle-class Illinoisans who have had to put up with years of economic uncertainty, incessant tax increases, and overspending,” said Rep. Brad Stephens. “With this bill package, we can provide tangible financial relief for hardworking, taxpaying Illinoisans and begin to reshape our state into a destination not only for families, but for students, small businesses, and licensed professionals.”
Included in the package is Rep. Kyle Moore’s Reducing Barriers to Start Act (HB 1351) which will eliminate many of the startup fees that new businesses face in Illinois, including all first-year business fees relating to licensing or registration. According to the U.S Treasury, small businesses created over 70 percent of net new jobs since 2019 so removing the barriers to entrepreneurship means businesses can get up-and-running more quickly and start creating new jobs.
Education is also a key component of the legislative package. Not only do these bills expand training and employment opportunities for working families, they also address the workforce shortage facing the trades and manufacturing sectors of the economy.
Rep. Mike Coffey’s legislation creates the Reinvest in Future Technical Careers Act (HB 1729) which provides tax credits for those who make authorized contributions to funds that award scholarships to students who attend technical academies. HB 1729 would provide opportunities for those who are not otherwise able to afford the training.
“Contractors in Illinois are challenged by not having enough qualified specialized trade workers to meet demand,” explained Coffey. “This bill would help fill the gaps between the state-mandated labor requirements and workforce availability.”
Other proposals that provide educational assistance include HB 1752 sponsored by House Assistant Republican Leader Brad Stephens, which creates an income tax deduction for employers who provide educational assistance for employees. Rep. Kevin Schmidt’s HB 3807 establishes the Illinois Trades Retention and Development Encouragement (ITRADE) grant program to help students gain a degree or certification in the fields related to the trades like electrical, plumbing, masonry, steel working and construction. House Deputy Republican Leader Ryan Spain is also focused on making education more affordable for working families. His HB 3821 doubles the current education expense income tax credit from $750 to $1500 a year.
Many manufacturing companies in Illinois have expressed concern over the shortage of a trained workforce to fill their needs. One of the obstacles has been a need for licensed educators. Rep. Jed Davis HB 1112 opens the door for highly skilled trade workers to become educators, even without a bachelor’s degree, ensuring more experts teaching real-world skills and more opportunities for students to complete their education in manufacturing, engineering, technology or a trade.
Finally, HB 1383 sponsored by Deputy Leader Spain, creates an income tax deduction on Illinois tax returns for gratuities which were included in the tipped-workers federal tax returns. The legislation would help those who rely on gratuities to keep more of their earnings instead of turning them over to the government.
The financial wellbeing of Illinois’ working families is a top priority for House Republicans who will be championing this package of bills throughout the legislative session.
“This package is called Relief for Working families because that’s what it will provide,” said Rep. Moore. “From furthering your education to starting a new business or simply keeping more of your hard-earned money in your own pocket. Working families need and deserve a break.”
House Republicans oppose any attempt to raise taxes on working families and seniors. As legislative hearings and negotiations begin on the Fiscal Year 2026 State Budget, House Republicans have reiterated our opposition to any attempt to raise taxes on working families and seniors. Multiple tax hike proposals have been floated by Illinois Democrats this year, including another progressive income tax increase.
Deputy Minority Leader Norine Hammond, who serves as the chief budgeteer for the House Republicans, criticized Illinois Democrats’ compulsion for excessive spending during session this week. Since 2019, Governor JB Pritzker and the Democratic supermajority have increased spending by more than $15 billion. As budget negotiations get underway, House Republicans will stand with hardworking families against any attempt to increase taxes.
HEALTH CARE
Health Alliance to exit insurance market at the end of 2025. Health Alliance, a provider of health insurance coverage to approximately 280,000 Illinoisans – mostly in Central Illinois – announced plans this week to wind down its coverage for working-age patients and their families and to withdraw from non-Medicare markets on January 1, 2026.
Health Alliance has approximately 600 employees in Illinois, mostly located in and around its Champaign-Urbana headquarters. The health care announcement was made on Wednesday, February 26.
GOVERNOR JIM EDGAR
Many Illinoisans share good wishes for Governor Edgar. Governor Jim Edgar and his wife Brenda shared the news this week that the 38th Governor of Illinois has been diagnosed with pancreatic cancer. Many Illinoisans recalled Edgar’s successful leadership of Illinois during two terms as Governor from 1991-1999. During this time of economic challenge and prosperity for Illinois, Governor Edgar’s leadership put our State’s budget in order; enacted major school reforms, supplemented by the creation of a network of charter schools; stood tall against crime through the enactment of new laws such as the Sex Offender Registration Act; and led Illinoisans as they fought the Great Flood of 1993 on the Mississippi River.
Governor Edgar indicated that he has started a course of treatment for his serious illness and appreciates the good wishes he is getting from many Illinoisans.
Regarding the estimated number of enrollees, in FY23:
- for HBIS (65+), the initial estimated number of enrollees was 6,700, while the actual number enrolled was 15,831;
- for HBIA (55-64), the initial estimated number of enrollees was 8,000, while the actual number enrolled was 17,024; and
- for HBIA (42-54), the initial estimated number of enrollees was 18,800, while the actual number enrolled was 36,912.
Background on Health Benefits for Immigrant Seniors and Adults. On November 7, 2023, the Legislative Audit Commission adopted Resolution Number 165, which directed the Office of the Auditor General to conduct a performance audit of the Illinois Department of Healthcare and Family Services’ (HFS) administration of the program of Medicaid services and coverage provided to undocumented immigrants from FY21-FY23.
In 2020, Illinois began to expand healthcare coverage to noncitizen immigrants. The first expansion, the Health Benefits for Immigrant Seniors program (HBIS), began in December 2020, and covered adult seniors 65 years of age and older. The second expansion began in May 2022 and covered immigrant adults between the ages of 55 and 64. The most recent expansion began in July 2022 and covered immigrant adults between the ages of 42 and 54. These two expansions are both part of the Health Benefits for Immigrant Adults program (HBIA).
SB 1298/P.A. 103-102 (FY24 Medicaid Omnibus) included a provision that allowed HFS to implement emergency rules to provide for the expeditious and effective ongoing implementation of HBIA/HBIS. In the following months of 2023, the Pritzker Administration implemented enrollment caps and other cost saving measures.
House Republicans call for end of taxpayer-funded health benefits for illegal immigrants.
House Minority Leader Tony McCombie released the following statement in response to the Illinois Auditor General’s report on the state run HBIA/HBIS program for undocumented immigrants, which far exceeded enrollment and cost estimates:
“House Republicans warned about the costly expansion of this program when it was first exposed last year. We could not afford it then, and we cannot afford it now. Yet, Democratic leadership forced taxpayers to shoulder the burden of this reckless spending for non-citizens, pushing our state’s finances to the brink.
“Beyond the overwhelming cost, reports of fraud and abuse make it even clearer that this program must end. There is no need to wait until the next fiscal year—immediately shut it down and protect Illinois taxpayers.”
Assistant Minority Leader C.D. Davidsmeyer called the audit findings shocking and again demanded that the State immediately end the massively expensive program.
“As the chief sponsor of House Bill 1456 to end taxpayer-funded health benefits for illegal immigrants, I already knew that this program was running way over the initial cost estimates,” Rep. Davidsmeyer said. “But even I was shocked by audit findings that showed cost overruns of up to 286 percent higher than the Pritzker administration’s initial estimates. At a time when our State is facing a multi-billion-dollar budget deficit, we simply cannot afford to spend over $1.6 billion on this giveaway to illegal immigrants.”
Representative Davidsmeyer discussed the secretive nature of how these programs were initially created and expanded in Illinois.
“The HBIS and HBIA programs were never fully debated and have never received stand-alone votes by the General Assembly. The initial HBIS program, along with the HBIA expansions, were slipped into several different Budget Implementation bills and a Medicaid Omnibus bill. I strongly believe that these massively expensive programs would never have passed as stand-alone bills,” said Davidsmeyer.
“We couldn’t afford free healthcare for illegal immigrants when the first HBIS program was passed during the COVID special session in 2020. And we certainly can’t afford it now. The State of Illinois needs to stop this giveaway immediately. Shut it down now!”
State Representative Amy Elik released the following statement in response to the Illinois Auditor General’s report on the state-run HBIA/HBIS program for undocumented immigrants, which far exceeded enrollment and cost estimates:
“Last year, I, through the Legislative Audit Commission, directed the Auditor General to conduct an audit of the Health Benefits for Immigrant Seniors and Adults (HBIA/HBIS), and the results were released today and are alarming. As House Republicans predicted, the audit found astounding differences in the estimates of the program versus the actual enrollment and expenses. We must do better. Now is the time and this is the opportunity to work for taxpayers, not promote fraud and overspending.”
State Representative Dennis Tipsword issued a statement following the Health Benefits for Immigrant Seniors and Adults audit report that was released this week by the Illinois Auditor General’s Office.
“House Republicans repeatedly warned the Democrats and Governor Pritzker that providing free healthcare benefits to illegal immigrants was unsustainable and unfair to the taxpayers and residents of Illinois. Not only did the Auditor General find out that the state egregiously overspent on healthcare benefits, but there were also thousands of improper enrollments in the program.
“It is utterly astounding how the Democrats and the Governor continue to recklessly waste billions of dollars of taxpayer money. This audit report is shocking on all levels, and one can only wonder if the grossly inaccurate estimated costs for this program were the result of office mismanagement or sheer incompetence. Why are we continuing to spend billions of taxpayer dollars on free healthcare and benefits for people who enter our country illegally? The Health Benefits for Immigrant Seniors and Health Benefits for Immigrant Adults programs must be shut down immediately to protect Illinois taxpayers.”
RELIEF FOR WORKING FAMILIES
House Republicans introduce measures to alleviate financial strain on working families. Illinois working families face an unprecedented number of financial hurdles that a group of House Republican legislators want to help them overcome. The lawmakers unveiled a package of bills aimed at providing much needed financial relief for Illinois’ working families.
The Relief for Working Families legislative package contains proposals which encourage entrepreneurship, help tipped employees keep all of their gratuities, and create opportunities for technical skill-building that can lead to high-paying jobs.
“Our Relief for Working Families bill package was crafted in order to reduce the financial burdens placed on middle-class Illinoisans who have had to put up with years of economic uncertainty, incessant tax increases, and overspending,” said Rep. Brad Stephens. “With this bill package, we can provide tangible financial relief for hardworking, taxpaying Illinoisans and begin to reshape our state into a destination not only for families, but for students, small businesses, and licensed professionals.”
Included in the package is Rep. Kyle Moore’s Reducing Barriers to Start Act (HB 1351) which will eliminate many of the startup fees that new businesses face in Illinois, including all first-year business fees relating to licensing or registration. According to the U.S Treasury, small businesses created over 70 percent of net new jobs since 2019 so removing the barriers to entrepreneurship means businesses can get up-and-running more quickly and start creating new jobs.
Education is also a key component of the legislative package. Not only do these bills expand training and employment opportunities for working families, they also address the workforce shortage facing the trades and manufacturing sectors of the economy.
Rep. Mike Coffey’s legislation creates the Reinvest in Future Technical Careers Act (HB 1729) which provides tax credits for those who make authorized contributions to funds that award scholarships to students who attend technical academies. HB 1729 would provide opportunities for those who are not otherwise able to afford the training.
“Contractors in Illinois are challenged by not having enough qualified specialized trade workers to meet demand,” explained Coffey. “This bill would help fill the gaps between the state-mandated labor requirements and workforce availability.”
Other proposals that provide educational assistance include HB 1752 sponsored by House Assistant Republican Leader Brad Stephens, which creates an income tax deduction for employers who provide educational assistance for employees. Rep. Kevin Schmidt’s HB 3807 establishes the Illinois Trades Retention and Development Encouragement (ITRADE) grant program to help students gain a degree or certification in the fields related to the trades like electrical, plumbing, masonry, steel working and construction. House Deputy Republican Leader Ryan Spain is also focused on making education more affordable for working families. His HB 3821 doubles the current education expense income tax credit from $750 to $1500 a year.
Many manufacturing companies in Illinois have expressed concern over the shortage of a trained workforce to fill their needs. One of the obstacles has been a need for licensed educators. Rep. Jed Davis HB 1112 opens the door for highly skilled trade workers to become educators, even without a bachelor’s degree, ensuring more experts teaching real-world skills and more opportunities for students to complete their education in manufacturing, engineering, technology or a trade.
Finally, HB 1383 sponsored by Deputy Leader Spain, creates an income tax deduction on Illinois tax returns for gratuities which were included in the tipped-workers federal tax returns. The legislation would help those who rely on gratuities to keep more of their earnings instead of turning them over to the government.
The financial wellbeing of Illinois’ working families is a top priority for House Republicans who will be championing this package of bills throughout the legislative session.
“This package is called Relief for Working families because that’s what it will provide,” said Rep. Moore. “From furthering your education to starting a new business or simply keeping more of your hard-earned money in your own pocket. Working families need and deserve a break.”
House Republicans oppose any attempt to raise taxes on working families and seniors. As legislative hearings and negotiations begin on the Fiscal Year 2026 State Budget, House Republicans have reiterated our opposition to any attempt to raise taxes on working families and seniors. Multiple tax hike proposals have been floated by Illinois Democrats this year, including another progressive income tax increase.
Deputy Minority Leader Norine Hammond, who serves as the chief budgeteer for the House Republicans, criticized Illinois Democrats’ compulsion for excessive spending during session this week. Since 2019, Governor JB Pritzker and the Democratic supermajority have increased spending by more than $15 billion. As budget negotiations get underway, House Republicans will stand with hardworking families against any attempt to increase taxes.
HEALTH CARE
Health Alliance to exit insurance market at the end of 2025. Health Alliance, a provider of health insurance coverage to approximately 280,000 Illinoisans – mostly in Central Illinois – announced plans this week to wind down its coverage for working-age patients and their families and to withdraw from non-Medicare markets on January 1, 2026.
Health Alliance has approximately 600 employees in Illinois, mostly located in and around its Champaign-Urbana headquarters. The health care announcement was made on Wednesday, February 26.
GOVERNOR JIM EDGAR
Many Illinoisans share good wishes for Governor Edgar. Governor Jim Edgar and his wife Brenda shared the news this week that the 38th Governor of Illinois has been diagnosed with pancreatic cancer. Many Illinoisans recalled Edgar’s successful leadership of Illinois during two terms as Governor from 1991-1999. During this time of economic challenge and prosperity for Illinois, Governor Edgar’s leadership put our State’s budget in order; enacted major school reforms, supplemented by the creation of a network of charter schools; stood tall against crime through the enactment of new laws such as the Sex Offender Registration Act; and led Illinoisans as they fought the Great Flood of 1993 on the Mississippi River.
Governor Edgar indicated that he has started a course of treatment for his serious illness and appreciates the good wishes he is getting from many Illinoisans.