MedicaidDocumentationMedium impact
Payment Error Rate Measurement (PERM) Audit Record Requirements Reminder
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Aug 26, 2009
We identified it
Jun 21, 2026
Summary
Illinois Department of Healthcare and Family Services has issued a reminder about Payment Error Rate Measurement (PERM) audit record requirements for Medicaid providers. This emphasizes existing documentation and record retention requirements that providers must maintain to comply with federal audits.
Action Required
Immediately: Review and ensure compliance with medical record documentation requirements. Maintain complete business and professional records for minimum 3 years from date of service. Keep records for last 12 months readily available for inspection without prior notice. Ensure all medical records include documentation of ancillary services ordered. Respond within 60 days if selected for PERM audit review. Failure to provide requested documentation will result in erroneous payment finding and payment recovery.