MedicaidDocumentationMedium impact
Payment Error Rate Measurement (PERM) Audit
Illinois Medicaid - HFS·IL·Provider Notice
We identified it
Jun 20, 2026
Summary
Illinois conducted a PERM audit for claims paid July 1, 2023 - June 30, 2024, identifying common billing errors including missing documentation, incorrect unit billing, and failure to maintain required records. Providers are reminded that all Medicaid/CHIP services are subject to audit, and errors can result in overpayment recovery and sanctions.
Action Required
Immediately: Review and strengthen documentation practices to ensure compliance with Chapter 100 Topic 110 record requirements. Billing team must verify all claims have supporting documentation before submission, ensure progress notes are completed and maintained, verify billed units match documented services, and update provider enrollment information in IMPACT system. Failure to maintain proper records may result in overpayment recovery, sanctions, or termination from Medicaid/CHIP programs.