Traditional MedicareReimbursementMedium impact
Payment for Day of Death
Illinois Medicaid - HFS·IL · Geriatrics·Provider Notice
Effective date
Jul 1, 2003
We identified it
Jun 21, 2026
Summary
Starting July 1, 2003, Illinois Medicaid will no longer pay the Medicare co-payment rate for residents who die while in Medicare status at long-term care facilities. Instead, payment will be made at the lower Medicaid rate for the day of death, matching Medicare's policy of not reimbursing facilities for the day a resident dies.
Action Required
By July 1, 2003: Long-term care facility billing teams must update billing systems to submit day-of-death claims at Medicaid rates instead of Medicare co-payment rates for residents who die while in Medicare status. Continue submitting resident status change notifications per 89 Illinois Administrative Code 140.513. This applies to all transactions entered after July 1, 2003, regardless of when the death occurred.