MedicaidAdministrativeHigh impact
Rate Year 2026 Determination for Disproportionate Share and Medicaid Percentage Adjustment Payments – Important Clarification Added
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Jul 1, 2025
We identified it
Jun 20, 2026
Summary
Illinois Department of Healthcare and Family Services issued requirements for hospitals to submit data for Rate Year 2026 Disproportionate Share Hospital (DSH) and Medicaid Percentage Adjustment (MPA) payment determinations. Hospitals must submit obstetrical care statements, cost reports, and various Medicaid utilization data by July 1, 2025, with additional OBRA'93 data due by August 15, 2025.
Action Required
By July 1, 2025: Hospital billing teams must complete and submit Disproportionate Share Obstetrical Statement (Part I or II), corrected cost reports if needed, Low Income Utilization Collection Form with audited financial statements, and out-of-state Medicaid verification reports to Illinois HFS. By August 15, 2025: Submit completed OBRA'93 Data Collection Form with charity care and bad debt data. Contact hfs.hospitals@illinois.gov to establish secure SharePoint folder for data submission. Failure to meet deadlines may result in lower DSH rates or ineligibility for DSH payments in Rate Year 2026.