MedicaidAdministrativeHigh impact
Payment Error Rate Measurement (PERM) Audit Compliance
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Nov 8, 2023
We identified it
Jun 20, 2026
Summary
Illinois is beginning its Rate Year 2025 Payment Error Rate Measurement (PERM) audit through contractor Empower AI, reviewing randomly sampled Medicaid and CHIP claims paid between July 1, 2023, and June 30, 2024. Providers must cooperate with record requests or face penalties including payment recovery, sanctions, and potential termination from Medicaid/CHIP programs.
Action Required
Immediately: All staff must be prepared to respond to legitimate record requests from Empower AI for claims paid between July 1, 2023, and June 30, 2024. Billing team should ensure all documentation supporting Medicaid and CHIP claims from this period is readily accessible and complete. Failure to comply will result in overpayment recovery, sanctions, or program termination.