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Legislative session focuses on supporting providers ahead of federal changes to healthcare

8 Jun 2026 9:59 AM | Deborah Hodges (Administrator)

Ahead of major federally-mandated changes to Medicaid and other health programs, Illinois lawmakers took steps during the recently-concluded legislative session that they said will protect providers and patients.

Below is a roundup of some of the proposals that could have the most significant impact on healthcare in the Land of Lincoln.

Budget

The General Assembly approved a roughly $55.9 billionspending package, which included little new funding for healthcare or other projects.

New funding includes $50 million to hire 450 additional staff and update eligibility systems to comply with federal requirements for Medicaid and the Supplemental Nutrition Assistance Program, including work requirements and more frequent redeterminations.

Another part of the package allocates roughly $70 million for a new program to support those who have lost SNAP benefits. Eligible residents would receive a one-time $400 payment, with the funds to be allocated by the Department of Human Services.

Advocates said the funds will provide one-time emergency assistance to up to 175,000 Illinoisans who have lost SNAP benefits due to expanded federal work requirements that went into effect earlier this year.

The budget package includes a $118 million allocation to support 17 safety-net hospitals.

It also maintains $143.6 million to support a program that provides Medicaid-like coverage for undocumented individuals 65 years and older, though enrollment will remain closed.

Another provision includes a 60-cent per hour wage increase for direct service providers who give care for those with intellectual and developmental disabilities. And it includes a zero-hour reimbursement model, or 24/7 compensated care in group homes.

It also provides $85 million to support a new loan program to help financially-distressed hospitals, which is laid out in this year’s Medicaid omnibus.

  • Roughly $169.8 million for the Hospital and Healthcare Transformation Capital Investment Program.
  • $60 million for 9-8-8 call centers & crisis response.
  • $17.8 million increase for mental health transitions and system rebalancing.
  • $15 million to continue the state’s medical debt relief program.
  • $15 million increase for early intervention services.
  • $10 million for the Community Behavioral Health Care Provider Loan Repayment Program.
  • $4 million will support welcoming centers that provide services to immigrants arriving in Illinois.
  • $9 million for a state grant to the Illinois Association of Free and Charitable Clinics.
  • Rate increase of adult day services to $17.84 per hour. Rates for each-way transportation services increased to $13.44 per unit of transportation.

More information on this news update can be found at Health News Illinois such as: 

Medicaid 

Prescription Drugs 

Insurance

Hospitals 

Reproductive Health 

Nursing Homes

Dental 

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