MedicaidReimbursementMedium impact
System Issue Regarding Repeal of 3.5% Rate Reduction
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Jul 1, 2021
We identified it
Jun 20, 2026
Summary
Illinois Medicaid has identified a system error where some hospitals are still receiving a 3.5% SMART Act reduction that should have been repealed effective July 1, 2021. The Department will automatically process claim adjustments using Adjustment Reason Code 8560 once the system is fixed.
Action Required
No action required by providers. Monitor remittance advice for automatic adjustments identified with Adjustment Reason Code 8560 - Reimburse Smart Act Reductions After 7/1/21. Contact billing consultant at 877-782-5565 with questions about affected claims.