PolicyChanges tracks payer policy changes for medical practices and tells you what to do before they take effect.

Create a free accountPolicy Monitoring is free. No card required.
← Back to list
Illinois Medicaid - HFSMedicaid · Reimbursement · Provider Notice · ILHigh impact

ICF/IID and MC/DD Rate Changes Effective January 1, 2026

Effective date
Jan 1, 2026
Identified
Aug 20, 2026

Summary

Illinois HFS has implemented rate increases for ICF/IID and MC/DD facilities effective January 1, 2026, including $0.80/hour wage increases for direct support personnel and updated wages for non-executive direct care staff per federal Bureau of Labor Statistics averages. The state has repriced all claims paid at lower rates and will distribute adjustment vouchers; billing teams must ensure updated per diem rates are applied to all new and adjusted claims, and pass through payment adjustments to developmental training providers within 10 days.

Get alerts when payers change rules like this one

We check Illinois Medicaid - HFS and other payers every day and email you when a change matches your specialty and state.

Get Illinois Medicaid - HFS alertsPolicy Monitoring is free. No card required.

What to do

Action · 8 steps
01REQUIREMENTS: By September 30, 2026: Billing team must verify that all ICF/IID and MC/DD facility claims processed after January 1, 2026 are using updated per diem rates from the HFS website or MEDI portal.
02Download current rate sheets through the MEDI portal (Login → Internet Electronic Claims → Download File(s) → Select Entity → Download to local directory).
03Within 10 days of receiving payment adjustment vouchers from HFS (expected late August/early September 2026): Accounts payable or billing team must pass through all rate adjustment payments to contracted developmental training and community day services providers per 89 Ill.
04Admin.
05Code 140.646(d).
06Verify that all repriced claims from HFS have been received and reconciled against the state's adjustment vouchers.
07Update internal billing documentation and rate tables to reflect the $0.80/hour wage increase for direct support personnel ($0.60 direct wage increase + $0.20 flexible allocation) and revised non-executive direct care staff wages.
08Contact HFS Bureau of Long Term Care (HFS.LTC@illinois.gov) if adjustment vouchers are not received by October 1, 2026, or contact DHS (DHS.DDD.DTenrollments@illinois.gov) with rate determination questions.
If missed: Failure to apply updated rates and pass through adjustments will result in underpayment to providers and potential compliance violations.

Original notice

ICF/IID and MC/DD Rate Changes Effective January 1, 2026
hfs.illinois.gov · Always check the source before changing claims.
View original ↗

Related policy hubs

Summaries are AI-assisted. Always confirm against the original payer notice.

What is PolicyChanges

One workspace for payer rules, prior auth, coding and compliance

Medical practices use PolicyChanges to catch payer changes before they cause denials. Every change is summarized in plain English, with the codes involved, the date it takes effect and what to do.

Start freePolicy Monitoring is free. No card required.
Get alerts for changes like thisPolicy Monitoring is free. No card required.Create a free account