MedicaidAdministrativeMedium impact
Payment Error Rate Measurement (PERM) Audit
Illinois Medicaid - HFS·IL·Provider Notice
We identified it
Jun 20, 2026
Summary
This is a reminder notice about ongoing Payment Error Rate Measurement (PERM) audits for Illinois Medicaid and CHIP claims. Providers may be contacted to provide documentation for randomly selected claims, and must ensure proper record-keeping, accurate coding, and complete National Provider Identifier (NPI) information to avoid overpayment recovery and potential sanctions.
Action Required
Immediately: Review and ensure compliance with Chapter 100 record requirements (subtopics 110.1-110.3) for maintenance, retention, and availability of medical records. Verify all Medicaid/CHIP claims include complete documentation, accurate procedure/diagnosis codes, and required NPIs for ordering/referring providers. Ensure ordering/referring practitioners are enrolled in IMPACT system as individual practitioners (not entities). Prepare to respond promptly to any PERM audit requests for medical records.