IL gov. proposes plan to rein in Medicaid

Illinois Governor Pat Quinn on Thursday proposed a plan that he said would save the state's Medicaid health program for the poor from collapse by slashing spending and raising revenue via an increase in the cigarette tax. The Democratic governor's $2.7 billion plan calls for saving $1.35 billion a year by reducing eligibility and coverage, eliminating programs, and other efficiencies. It also calls for dropping rates paid to providers to save another $675 million, and increasing the state's cigarette tax by $1 per pack to raise $335.7 million annually.