MedicaidReimbursementMedium impact
Disproportionate Share (DSH) Adjustment Payments and Medicaid Percentage Adjustment (MPA) Payments for Managed Care Organization (MCO) and Managed Care Community Network (MCCN) Enrollee Claims
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Oct 1, 2014
We identified it
Jun 20, 2026
Summary
Effective October 1, 2014, Illinois changed how hospitals receive Medicaid Percentage Adjustment (MPA) payments for MCO and MCCN enrollees. The state will no longer pay MPA adjustments directly to hospitals - instead, MCOs and MCCNs will make these payments directly to eligible hospitals.
Action Required
Effective October 1, 2014: Hospital billing teams must update accounts receivable processes to expect MPA payments from MCOs/MCCNs rather than the state department. Update payment posting procedures to properly identify and allocate MPA payments from managed care plans. DSH payments will continue to come from the state department. Contact Bureau of Rate Development and Analysis at 217-785-0710 for questions.