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Illinois Medicaid - HFSMedicaid · Reimbursement · Provider Notice · ILHigh impact

Fiscal Year 2026 and 2027 Managed Care Organization Provider Assessment Program Tier Rate Re-Assessment Notice

Effective date
Aug 25, 2026
Identified
Sep 29, 2026

Summary

Illinois Department of Human Services has re-assessed Managed Care Organization (MCO) provider assessment fees for fiscal years 2026 and 2027 using updated 2023 member month data and newly including FIDE SNP member months. Tax tier rates have been adjusted, with FY2026 Tier 1 at $115.00 per member month and FY2027 Tier 1 at $116.90 per member month. Any over- or underpayments from the initial assessment have been recalculated and will be distributed across remaining FY2027 monthly installment payments beginning October 2026.

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What to do

Action · 10 steps
01REQUIREMENTS: - By September 1, 2026: Billing team must obtain re-assessment remittance notices from the Department's SharePoint site via automated email from hfs.smtp.noreply@illinois.gov.
02Access SharePoint using directions provided in May 2026 email, or contact HFS.ProviderAssessmentUnit@illinois.gov or 217-524-7110 if access is unavailable.
03- By October 1, 2026: Accounting/Finance team must implement revised MCO assessment payment amounts based on new tier rates for FY2026 ($115.00 Tier 1, $1.30 Tier 2, $4.40 Tier 3) into accounts payable system and payment schedules.
04- By January 1, 2027: Accounting/Finance team must update FY2027 MCO assessment payment amounts to new tier rates ($116.90 Tier 1, $0.90 Tier 2, $5.60 Tier 3) in payment system.
05- Ongoing beginning October 2026: Finance team must remit monthly MCO assessment payments by the specified due dates (October 1, 2026 through June 1, 2027 per schedule provided).
06Payments MUST be submitted via ACH Credit/Wire Transfer using specific ORIG CO NAME, ORIG ID (TIN), ENTRY DESCR (HFS Tax ID), and ENTRY CLASS (CCD) as detailed in notice.
07Assessment payments MUST be submitted as separate transactions from other HFS payments and designated in Remarks field to ensure proper account crediting.
08- Immediately: If ACH banking information is not on file, contact HFS.ProviderAssessmentUnit@illinois.gov or 217-524-7110 to obtain Department banking details.
09Consequences of inaction: Failure to remit corrected assessment payments by due dates may result in non-compliance with Illinois statute 305 ILCS 5/5H and potential payment holds or contract sanctions.
10Improper payment format or failure to designate as separate transaction will result in delayed or incorrect account crediting.

Original notice

Fiscal Year 2026 and 2027 Managed Care Organization Provider Assessment Program Tier Rate Re-Assessment Notice
hfs.illinois.gov · Always check the source before changing claims.
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