MedicaidAdministrativeHigh impact
Advance Payment agreements and Recoupment- Restart Collections September 1, 2026
Illinois Medicaid - HFS·IL · Geriatrics·Provider Notice
Effective date
Sep 1, 2026
We identified it
Jul 23, 2026
Summary
Illinois HFS is restarting collections on advance payment agreements for long-term care (LTC) nursing facilities effective September 1, 2026. Providers must execute renegotiated advance payment agreements by August 15, 2026, committing to repay all outstanding balances over 12 months in equal monthly installments. Failure to sign the agreement or make required payments will trigger immediate recoupment of 25% of the outstanding balance monthly for four months, with HFS authorized to withhold FFS claims, supplemental payments, and direct MCO payments to recover amounts owed.
Action Required
By August 15, 2026: LTC nursing facility providers (not typical medical practices) must sign and return renegotiated advance payment agreements to HFS.LTCAdvances@Illinois.gov before Friday, August 7, 2026 close of business. If your practice operates LTC facilities or received advance payments from HFS in 2019 for Medicaid eligibility determination hardships, obtain the renegotiated agreement template from HFS Bureau of Long Term Care contact on file. Sign, date, and submit before the August 7 deadline. Failure to execute the agreement by August 15, 2026 will result in immediate recoupment of all outstanding advance payment balances starting September 1, 2026, through withholding of FFS claims payments, supplemental payments, MCO-directed claims, and state agency payments. Beginning September 1, 2026, any missed monthly repayment will trigger a 30-day cure notice; if not remedied, HFS will recoup 25% of the outstanding balance monthly for 4 months until fully repaid.