Talks on unpaid Illinois Medicaid bills at impasse, lawyers say

Attorneys in a lawsuit over $2 billion in unpaid Medicaid bills say court-ordered talks to resolve the issue haven’t made progress and they’re asking a judge to order Illinois to start paying $1 billion a month as it heads into a third year without a budget.

The request in a Tuesday filing in Chicago federal court comes three weeks after Judge Joan Lefkow ruled Illinois isn’t in compliance with previous orders to pay health care bills. She also told the sides to work out a deal on a level of payment ensuring critical medical care for the most vulnerable.

But Tuesday’s filing says “the parties are at an impasse.” It also says the $1 billion should be manageable because of some federal reimbursements.

There’s a hearing in the case Wednesday.