MedicaidReimbursementHigh impact
Institutional Provider Rate Reductions Effective July 1, 2012
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Jul 1, 2012
We identified it
Jun 20, 2026
Summary
Illinois Medicaid is implementing rate reductions effective July 1, 2012, reducing hospital inpatient/outpatient services by 3.5% and hospice services by 2.7%. Safety Net Hospitals and Critical Access Hospitals are exempt from the 3.5% reduction.
Action Required
Effective July 1, 2012: Billing team must update reimbursement expectations for Illinois Medicaid claims - expect 3.5% reduction on hospital inpatient/outpatient services, renal dialysis, ASTC services, and organ transplant services. Expect 2.7% reduction on hospice services (except revenue code 658). Update financial projections and patient estimates accordingly. Verify if facility qualifies as Safety Net or Critical Access Hospital for exemption.