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HB2858 • 2026

MEDICAID-NURSING FACILTY RATES

MEDICAID-NURSING FACILTY RATES

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Robert "Bob" Rita
Last action
2026-03-27
Official status
Rule 19(a) / Re-referred to Rules Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

MEDICAID-NURSING FACILTY RATES

MEDICAID-NURSING FACILTY RATES

What This Bill Does

  • MEDICAID-NURSING FACILTY RATES

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-27 Illinois General Assembly

    Rule 19(a) / Re-referred to Rules Committee

  2. 2026-03-20 Illinois General Assembly

    To Appropriations-Medicaid Subcommittee

  3. 2026-03-12 Illinois General Assembly

    Assigned to Appropriations-Health and Human Services Committee

  4. 2025-05-21 Illinois General Assembly

    Added Co-Sponsor Rep. Kevin Schmidt

  5. 2025-05-06 Illinois General Assembly

    Added Co-Sponsor Rep. Jay Hoffman

  6. 2025-05-06 Illinois General Assembly

    Added Co-Sponsor Rep. Harry Benton

  7. 2025-04-29 Illinois General Assembly

    Added Co-Sponsor Rep. Amy Elik

  8. 2025-04-28 Illinois General Assembly

    Added Co-Sponsor Rep. William E Hauter

  9. 2025-04-28 Illinois General Assembly

    Added Co-Sponsor Rep. Brad Stephens

  10. 2025-04-16 Illinois General Assembly

    Added Co-Sponsor Rep. Justin Slaughter

  11. 2025-04-16 Illinois General Assembly

    Added Co-Sponsor Rep. William "Will" Davis

  12. 2025-04-15 Illinois General Assembly

    Added Co-Sponsor Rep. Ryan Spain

  13. 2025-04-10 Illinois General Assembly

    Added Co-Sponsor Rep. Rick Ryan

  14. 2025-04-10 Illinois General Assembly

    Added Co-Sponsor Rep. John M. Cabello

  15. 2025-04-08 Illinois General Assembly

    Added Co-Sponsor Rep. Barbara Hernandez

  16. 2025-04-07 Illinois General Assembly

    Added Chief Co-Sponsor Rep. Norine K. Hammond

  17. 2025-04-07 Illinois General Assembly

    Added Chief Co-Sponsor Rep. Dave Severin

  18. 2025-04-07 Illinois General Assembly

    Added Co-Sponsor Rep. Jackie Haas

  19. 2025-04-02 Illinois General Assembly

    Removed Co-Sponsor Rep. Elizabeth "Lisa" Hernandez

  20. 2025-04-02 Illinois General Assembly

    Added Chief Co-Sponsor Rep. Elizabeth "Lisa" Hernandez

  21. 2025-04-02 Illinois General Assembly

    Added Chief Co-Sponsor Rep. Marcus C. Evans, Jr.

  22. 2025-03-31 Illinois General Assembly

    Added Co-Sponsor Rep. Hoan Huynh

  23. 2025-03-31 Illinois General Assembly

    Added Co-Sponsor Rep. Edgar González, Jr.

  24. 2025-03-27 Illinois General Assembly

    Added Co-Sponsor Rep. Daniel Didech

  25. 2025-03-26 Illinois General Assembly

    Added Co-Sponsor Rep. Elizabeth "Lisa" Hernandez

  26. 2025-03-26 Illinois General Assembly

    Added Co-Sponsor Rep. Nicholas K. Smith

  27. 2025-03-26 Illinois General Assembly

    Added Co-Sponsor Rep. Kam Buckner

  28. 2025-03-26 Illinois General Assembly

    Added Co-Sponsor Rep. Kevin John Olickal

  29. 2025-03-21 Illinois General Assembly

    Rule 19(a) / Re-referred to Rules Committee

  30. 2025-03-17 Illinois General Assembly

    Added Co-Sponsor Rep. Jehan Gordon-Booth

  31. 2025-03-04 Illinois General Assembly

    Assigned to Appropriations-Health and Human Services Committee

  32. 2025-02-06 Illinois General Assembly

    First Reading

  33. 2025-02-06 Illinois General Assembly

    Referred to Rules Committee

  34. 2025-02-05 Illinois General Assembly

    Filed with the Clerk by Rep. Robert "Bob" Rita

Official Summary Text

MEDICAID-NURSING FACILTY RATES

Current Bill Text

Read the full stored bill text
Illinois General Assembly - Full Text of HB2858

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HB2858 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2858

Introduced 2/6/2025, by Rep. Robert "Bob" Rita

SYNOPSIS AS INTRODUCED:

305 ILCS 5/5-5.2

Amends the Medical Assistance Article of the Illinois Public Aid
Code. Provides that subject to federal approval, beginning on January 1,
2026, the reimbursement rates for the support component of the nursing
facility rate for facilities licensed under the Nursing Home Care Act as
skilled or intermediate care facilities and for facilities licensed under
the Specialized Mental Health Rehabilitation Act of 2013 shall be the rate
in effect on June 30, 2024 increased by the percent change in the Consumer
Price Index-U from September 2016 to September 2025. Effective
immediately.
LRB104 10495 KTG 20570 b

A BILL FOR

HB2858
LRB104 10495 KTG 20570 b
1

AN ACT concerning public aid.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Public Aid Code is amended by
5
changing Section 5-5.2 as follows:

6

(305 ILCS 5/5-5.2)
7

Sec. 5-5.2.
Payment.
8

(a) All nursing facilities that are grouped pursuant to
9
Section 5-5.1 of this Act shall receive the same rate of
10
payment for similar services.
11

(b) It shall be a matter of State policy that the Illinois
12
Department shall utilize a uniform billing cycle throughout
13
the State for the long-term care providers.
14

(c) (Blank).
15

(c-1) Notwithstanding any other provisions of this Code,
16
the methodologies for reimbursement of nursing services as
17
provided under this Article shall no longer be applicable for
18
bills payable for nursing services rendered on or after a new
19
reimbursement system based on the Patient Driven Payment Model
20
(PDPM) has been fully operationalized, which shall take effect
21
for services provided on or after the implementation of the
22
PDPM reimbursement system begins. For the purposes of Public
23
Act 102-1035, the implementation date of the PDPM

HB2858
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LRB104 10495 KTG 20570 b
1
reimbursement system and all related provisions shall be July
2
1, 2022 if the following conditions are met: (i) the Centers
3
for Medicare and Medicaid Services has approved corresponding
4
changes in the reimbursement system and bed assessment; and
5
(ii) the Department has filed rules to implement these changes
6
no later than June 1, 2022. Failure of the Department to file
7
rules to implement the changes provided in Public Act 102-1035
8
no later than June 1, 2022 shall result in the implementation
9
date being delayed to October 1, 2022.
10

(d) The new nursing services reimbursement methodology
11
utilizing the Patient Driven Payment Model, which shall be
12
referred to as the PDPM reimbursement system, taking effect
13
July 1, 2022, upon federal approval by the Centers for
14
Medicare and Medicaid Services, shall be based on the
15
following:
16

(1) The methodology shall be resident-centered,
17

facility-specific, cost-based, and based on guidance from
18

the Centers for Medicare and Medicaid Services.
19

(2) Costs shall be annually rebased and case mix index
20

quarterly updated. The nursing services methodology will
21

be assigned to the Medicaid enrolled residents on record
22

as of 30 days prior to the beginning of the rate period in
23

the Department's Medicaid Management Information System
24

(MMIS) as present on the last day of the second quarter
25

preceding the rate period based upon the Assessment
26

Reference Date of the Minimum Data Set (MDS).

HB2858
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LRB104 10495 KTG 20570 b
1

(3) Regional wage adjustors based on the Health
2

Service Areas (HSA) groupings and adjusters in effect on
3

April 30, 2012 shall be included, except no adjuster shall
4

be lower than 1.06.
5

(4) PDPM nursing case mix indices in effect on March
6

1, 2022 shall be assigned to each resident class at no less
7

than 0.7858 of the Centers for Medicare and Medicaid
8

Services PDPM unadjusted case mix values, in effect on
9

March 1, 2022.
10

(5) The pool of funds available for distribution by
11

case mix and the base facility rate shall be determined
12

using the formula contained in subsection (d-1).
13

(6) The Department shall establish a variable per diem
14

staffing add-on in accordance with the most recent
15

available federal staffing report, currently the Payroll
16

Based Journal, for the same period of time, and if
17

applicable adjusted for acuity using the same quarter's
18

MDS. The Department shall rely on Payroll Based Journals
19

provided to the Department of Public Health to make a
20

determination of non-submission. If the Department is
21

notified by a facility of missing or inaccurate Payroll
22

Based Journal data or an incorrect calculation of
23

staffing, the Department must make a correction as soon as
24

the error is verified for the applicable quarter.
25

Beginning October 1, 2024, the staffing percentage
26

used in the calculation of the per diem staffing add-on

HB2858
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LRB104 10495 KTG 20570 b
1

shall be its PDPM STRIVE Staffing Ratio which equals: its
2

Reported Total Nurse Staffing Hours Per Resident Per Day
3

as published in the most recent federal staffing report
4

(the Provider Information File), divided by the facility's
5

PDPM STRIVE Staffing Target. Each facility's PDPM STRIVE
6

Staffing Target is equal to .82 times the facility's
7

Illinois Adjusted Facility Case-Mix Hours Per Resident Per
8

Day. A facility's Illinois Adjusted Facility Case Mix
9

Hours Per Resident Per Day is equal to its Case-Mix Total
10

Nurse Staffing Hours Per Resident Per Day (as published in
11

the most recent federal staffing report) times 3.662
12

(which reflects the national resident days-weighted mean
13

Reported Total Nurse Staffing Hours Per Resident Per Day
14

as calculated using the January 2024 federal Provider
15

Information Files), divided by the national resident
16

days-weighted mean Reported Total Nurse Staffing Hours Per
17

Resident Per Day calculated using the most recent federal
18

Provider Information File.
19

(6.5) Beginning July 1, 2024, the paid per diem
20

staffing add-on shall be the paid per diem staffing add-on
21

in effect April 1, 2024. For dates beginning October 1,
22

2024 and through September 30, 2025, the denominator for
23

the staffing percentage shall be the lesser of the
24

facility's PDPM STRIVE Staffing Target and:
25

(A) For the quarter beginning October 1, 2024, the
26

sum of 20% of the facility's PDPM STRIVE Staffing

HB2858
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LRB104 10495 KTG 20570 b
1

Target and 80% of the facility's Case-Mix Total Nurse
2

Staffing Hours Per Resident Per Day (as published in
3

the January 2024 federal staffing report).
4

(B) For the quarter beginning January 1, 2025, the
5

sum of 40% of the facility's PDPM STRIVE Staffing
6

Target and 60% of the facility's Case-Mix Total Nurse
7

Staffing Hours Per Resident Per Day (as published in
8

the January 2024 federal staffing report).
9

(C) For the quarter beginning March 1, 2025, the
10

sum of 60% of the facility's PDPM STRIVE Staffing
11

Target and 40% of the facility's Case-Mix Total Nurse
12

Staffing Hours Per Resident Per Day (as published in
13

the January 2024 federal staffing report).
14

(D) For the quarter beginning July 1, 2025, the
15

sum of 80% of the facility's PDPM STRIVE Staffing
16

Target and 20% of the facility's Case-Mix Total Nurse
17

Staffing Hours Per Resident Per Day (as published in
18

the January 2024 federal staffing report).
19

Facilities with at least 70% of the staffing
20

indicated by the STRIVE study shall be paid a per diem
21

add-on of $9, increasing by equivalent steps for each
22

whole percentage point until the facilities reach a per
23

diem of $16.52. Facilities with at least 80% of the
24

staffing indicated by the STRIVE study shall be paid a per
25

diem add-on of $16.52, increasing by equivalent steps for
26

each whole percentage point until the facilities reach a

HB2858
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LRB104 10495 KTG 20570 b
1

per diem add-on of $25.77. Facilities with at least 92% of
2

the staffing indicated by the STRIVE study shall be paid a
3

per diem add-on of $25.77, increasing by equivalent steps
4

for each whole percentage point until the facilities reach
5

a per diem add-on of $30.98. Facilities with at least 100%
6

of the staffing indicated by the STRIVE study shall be
7

paid a per diem add-on of $30.98, increasing by equivalent
8

steps for each whole percentage point until the facilities
9

reach a per diem add-on of $36.44. Facilities with at
10

least 110% of the staffing indicated by the STRIVE study
11

shall be paid a per diem add-on of $36.44, increasing by
12

equivalent steps for each whole percentage point until the
13

facilities reach a per diem add-on of $38.68. Facilities
14

with at least 125% or higher of the staffing indicated by
15

the STRIVE study shall be paid a per diem add-on of $38.68.
16

No nursing facility's variable staffing per diem add-on
17

shall be reduced by more than 5% in 2 consecutive
18

quarters. For the quarters beginning July 1, 2022 and
19

October 1, 2022, no facility's variable per diem staffing
20

add-on shall be calculated at a rate lower than 85% of the
21

staffing indicated by the STRIVE study. No facility below
22

70% of the staffing indicated by the STRIVE study shall
23

receive a variable per diem staffing add-on after December
24

31, 2022.
25

(7) For dates of services beginning July 1, 2022, the
26

PDPM nursing component per diem for each nursing facility

HB2858
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LRB104 10495 KTG 20570 b
1

shall be the product of the facility's (i) statewide PDPM
2

nursing base per diem rate, $92.25, adjusted for the
3

facility average PDPM case mix index calculated quarterly
4

and (ii) the regional wage adjuster, and then add the
5

Medicaid access adjustment as defined in (e-3) of this
6

Section. Transition rates for services provided between
7

July 1, 2022 and October 1, 2023 shall be the greater of
8

the PDPM nursing component per diem or:
9

(A) for the quarter beginning July 1, 2022, the
10

RUG-IV nursing component per diem;
11

(B) for the quarter beginning October 1, 2022, the
12

sum of the RUG-IV nursing component per diem
13

multiplied by 0.80 and the PDPM nursing component per
14

diem multiplied by 0.20;
15

(C) for the quarter beginning January 1, 2023, the
16

sum of the RUG-IV nursing component per diem
17

multiplied by 0.60 and the PDPM nursing component per
18

diem multiplied by 0.40;
19

(D) for the quarter beginning April 1, 2023, the
20

sum of the RUG-IV nursing component per diem
21

multiplied by 0.40 and the PDPM nursing component per
22

diem multiplied by 0.60;
23

(E) for the quarter beginning July 1, 2023, the
24

sum of the RUG-IV nursing component per diem
25

multiplied by 0.20 and the PDPM nursing component per
26

diem multiplied by 0.80; or

HB2858
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LRB104 10495 KTG 20570 b
1

(F) for the quarter beginning October 1, 2023 and
2

each subsequent quarter, the transition rate shall end
3

and a nursing facility shall be paid 100% of the PDPM
4

nursing component per diem.
5

(d-1) Calculation of base year Statewide RUG-IV nursing
6
base per diem rate.
7

(1) Base rate spending pool shall be:
8

(A) The base year resident days which are
9

calculated by multiplying the number of Medicaid
10

residents in each nursing home as indicated in the MDS
11

data defined in paragraph (4) by 365.
12

(B) Each facility's nursing component per diem in
13

effect on July 1, 2012 shall be multiplied by
14

subsection (A).
15

(C) Thirteen million is added to the product of
16

subparagraph (A) and subparagraph (B) to adjust for
17

the exclusion of nursing homes defined in paragraph
18

(5).
19

(2) For each nursing home with Medicaid residents as
20

indicated by the MDS data defined in paragraph (4),
21

weighted days adjusted for case mix and regional wage
22

adjustment shall be calculated. For each home this
23

calculation is the product of:
24

(A) Base year resident days as calculated in
25

subparagraph (A) of paragraph (1).
26

(B) The nursing home's regional wage adjustor

HB2858
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LRB104 10495 KTG 20570 b
1

based on the Health Service Areas (HSA) groupings and
2

adjustors in effect on April 30, 2012.
3

(C) Facility weighted case mix which is the number
4

of Medicaid residents as indicated by the MDS data
5

defined in paragraph (4) multiplied by the associated
6

case weight for the RUG-IV 48 grouper model using
7

standard RUG-IV procedures for index maximization.
8

(D) The sum of the products calculated for each
9

nursing home in subparagraphs (A) through (C) above
10

shall be the base year case mix, rate adjusted
11

weighted days.
12

(3) The Statewide RUG-IV nursing base per diem rate:
13

(A) on January 1, 2014 shall be the quotient of the
14

paragraph (1) divided by the sum calculated under
15

subparagraph (D) of paragraph (2);
16

(B) on and after July 1, 2014 and until July 1,
17

2022, shall be the amount calculated under
18

subparagraph (A) of this paragraph (3) plus $1.76; and
19

(C) beginning July 1, 2022 and thereafter, $7
20

shall be added to the amount calculated under
21

subparagraph (B) of this paragraph (3) of this
22

Section.
23

(4) Minimum Data Set (MDS) comprehensive assessments
24

for Medicaid residents on the last day of the quarter used
25

to establish the base rate.
26

(5) Nursing facilities designated as of July 1, 2012

HB2858
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LRB104 10495 KTG 20570 b
1

by the Department as "Institutions for Mental Disease"
2

shall be excluded from all calculations under this
3

subsection. The data from these facilities shall not be
4

used in the computations described in paragraphs (1)
5

through (4) above to establish the base rate.
6

(e) Beginning July 1, 2014, the Department shall allocate
7
funding in the amount up to $10,000,000 for per diem add-ons to
8
the RUGS methodology for dates of service on and after July 1,
9
2014:
10

(1) $0.63 for each resident who scores in I4200
11

Alzheimer's Disease or I4800 non-Alzheimer's Dementia.
12

(2) $2.67 for each resident who scores either a "1" or
13

"2" in any items S1200A through S1200I and also scores in
14

RUG groups PA1, PA2, BA1, or BA2.
15

(e-1) (Blank).
16

(e-2) For dates of services beginning January 1, 2014 and
17
ending September 30, 2023, the RUG-IV nursing component per
18
diem for a nursing home shall be the product of the statewide
19
RUG-IV nursing base per diem rate, the facility average case
20
mix index, and the regional wage adjustor. For dates of
21
service beginning July 1, 2022 and ending September 30, 2023,
22
the Medicaid access adjustment described in subsection (e-3)
23
shall be added to the product.
24

(e-3) A Medicaid Access Adjustment of $4 adjusted for the
25
facility average PDPM case mix index calculated quarterly
26
shall be added to the statewide PDPM nursing per diem for all

HB2858
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LRB104 10495 KTG 20570 b
1
facilities with annual Medicaid bed days of at least 70% of all
2
occupied bed days adjusted quarterly. For each new calendar
3
year and for the 6-month period beginning July 1, 2022, the
4
percentage of a facility's occupied bed days comprised of
5
Medicaid bed days shall be determined by the Department
6
quarterly. For dates of service beginning January 1, 2023, the
7
Medicaid Access Adjustment shall be increased to $4.75. This
8
subsection shall be inoperative on and after January 1, 2028.
9

(e-4) Subject to federal approval, on and after January 1,
10
2024, the Department shall increase the rate add-on at
11
paragraph (7) subsection (a) under 89 Ill. Adm. Code 147.335
12
for ventilator services from $208 per day to $481 per day.
13
Payment is subject to the criteria and requirements under 89
14
Ill. Adm. Code 147.335.
15

(f) (Blank).
16

(g) Notwithstanding any other provision of this Code, on
17
and after July 1, 2012, for facilities not designated by the
18
Department of Healthcare and Family Services as "Institutions
19
for Mental Disease", rates effective May 1, 2011 shall be
20
adjusted as follows:
21

(1) (Blank);
22

(2) (Blank);
23

(3) Facility rates for the capital and support
24

components shall be reduced by 1.7%.
25

(h) Notwithstanding any other provision of this Code, on
26
and after July 1, 2012, nursing facilities designated by the

HB2858
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LRB104 10495 KTG 20570 b
1
Department of Healthcare and Family Services as "Institutions
2
for Mental Disease" and "Institutions for Mental Disease" that
3
are facilities licensed under the Specialized Mental Health
4
Rehabilitation Act of 2013 shall have the nursing,
5
socio-developmental, capital, and support components of their
6
reimbursement rate effective May 1, 2011 reduced in total by
7
2.7%.
8

(i) On and after July 1, 2014, the reimbursement rates for
9
the support component of the nursing facility rate for
10
facilities licensed under the Nursing Home Care Act as skilled
11
or intermediate care facilities shall be the rate in effect on
12
June 30, 2014 increased by 8.17%.
13

(i-1) Subject to federal approval, on and after January 1,
14
2024, the reimbursement rates for the support component of the
15
nursing facility rate for facilities licensed under the
16
Nursing Home Care Act as skilled or intermediate care
17
facilities shall be the rate in effect on June 30, 2023
18
increased by 12%.
19

(i-2) Subject to federal approval, beginning on January 1,
20
2026, the reimbursement rates for the support component of the
21
nursing facility rate for facilities licensed under the
22
Nursing Home Care Act as skilled or intermediate care
23
facilities and for facilities licensed under the Specialized
24
Mental Health Rehabilitation Act of 2013 shall be the rate in
25
effect on June 30, 2024 increased by the percent change in the
26
Consumer Price Index-U from September 2016 to September 2025.

HB2858
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LRB104 10495 KTG 20570 b
1
As used in this subsection, "Consumer Price Index-U" means the
2
index published by the Bureau of Labor Statistics of the
3
United States Department of Labor that measures the average
4
change in prices of goods and services purchased by all urban
5
consumers, United States city average, all items, 1982-84 =
6
100.

7

(j) Notwithstanding any other provision of law, subject to
8
federal approval, effective July 1, 2019, sufficient funds
9
shall be allocated for changes to rates for facilities
10
licensed under the Nursing Home Care Act as skilled nursing
11
facilities or intermediate care facilities for dates of
12
services on and after July 1, 2019: (i) to establish, through
13
June 30, 2022 a per diem add-on to the direct care per diem
14
rate not to exceed $70,000,000 annually in the aggregate
15
taking into account federal matching funds for the purpose of
16
addressing the facility's unique staffing needs, adjusted
17
quarterly and distributed by a weighted formula based on
18
Medicaid bed days on the last day of the second quarter
19
preceding the quarter for which the rate is being adjusted.
20
Beginning July 1, 2022, the annual $70,000,000 described in
21
the preceding sentence shall be dedicated to the variable per
22
diem add-on for staffing under paragraph (6) of subsection
23
(d); and (ii) in an amount not to exceed $170,000,000 annually
24
in the aggregate taking into account federal matching funds to
25
permit the support component of the nursing facility rate to
26
be updated as follows:

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(1) 80%, or $136,000,000, of the funds shall be used
2

to update each facility's rate in effect on June 30, 2019
3

using the most recent cost reports on file, which have had
4

a limited review conducted by the Department of Healthcare
5

and Family Services and will not hold up enacting the rate
6

increase, with the Department of Healthcare and Family
7

Services.
8

(2) After completing the calculation in paragraph (1),
9

any facility whose rate is less than the rate in effect on
10

June 30, 2019 shall have its rate restored to the rate in
11

effect on June 30, 2019 from the 20% of the funds set
12

aside.
13

(3) The remainder of the 20%, or $34,000,000, shall be
14

used to increase each facility's rate by an equal
15

percentage.
16

(k) During the first quarter of State Fiscal Year 2020,
17
the Department of Healthcare of Family Services must convene a
18
technical advisory group consisting of members of all trade
19
associations representing Illinois skilled nursing providers
20
to discuss changes necessary with federal implementation of
21
Medicare's Patient-Driven Payment Model. Implementation of
22
Medicare's Patient-Driven Payment Model shall, by September 1,
23
2020, end the collection of the MDS data that is necessary to
24
maintain the current RUG-IV Medicaid payment methodology. The
25
technical advisory group must consider a revised reimbursement
26
methodology that takes into account transparency,

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1
accountability, actual staffing as reported under the
2
federally required Payroll Based Journal system, changes to
3
the minimum wage, adequacy in coverage of the cost of care, and
4
a quality component that rewards quality improvements.
5

(l) The Department shall establish per diem add-on
6
payments to improve the quality of care delivered by
7
facilities, including:
8

(1) Incentive payments determined by facility
9

performance on specified quality measures in an initial
10

amount of $70,000,000. Nothing in this subsection shall be
11

construed to limit the quality of care payments in the
12

aggregate statewide to $70,000,000, and, if quality of
13

care has improved across nursing facilities, the
14

Department shall adjust those add-on payments accordingly.
15

The quality payment methodology described in this
16

subsection must be used for at least State Fiscal Year
17

2023. Beginning with the quarter starting July 1, 2023,
18

the Department may add, remove, or change quality metrics
19

and make associated changes to the quality payment
20

methodology as outlined in subparagraph (E). Facilities
21

designated by the Centers for Medicare and Medicaid
22

Services as a special focus facility or a hospital-based
23

nursing home do not qualify for quality payments.
24

(A) Each quality pool must be distributed by
25

assigning a quality weighted score for each nursing
26

home which is calculated by multiplying the nursing

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home's quality base period Medicaid days by the
2

nursing home's star rating weight in that period.
3

(B) Star rating weights are assigned based on the
4

nursing home's star rating for the LTS quality star
5

rating. As used in this subparagraph, "LTS quality
6

star rating" means the long-term stay quality rating
7

for each nursing facility, as assigned by the Centers
8

for Medicare and Medicaid Services under the Five-Star
9

Quality Rating System. The rating is a number ranging
10

from 0 (lowest) to 5 (highest).
11

(i) Zero-star or one-star rating has a weight
12

of 0.
13

(ii) Two-star rating has a weight of 0.75.
14

(iii) Three-star rating has a weight of 1.5.
15

(iv) Four-star rating has a weight of 2.5.
16

(v) Five-star rating has a weight of 3.5.
17

(C) Each nursing home's quality weight score is
18

divided by the sum of all quality weight scores for
19

qualifying nursing homes to determine the proportion
20

of the quality pool to be paid to the nursing home.
21

(D) The quality pool is no less than $70,000,000
22

annually or $17,500,000 per quarter. The Department
23

shall publish on its website the estimated payments
24

and the associated weights for each facility 45 days
25

prior to when the initial payments for the quarter are
26

to be paid. The Department shall assign each facility

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the most recent and applicable quarter's STAR value
2

unless the facility notifies the Department within 15
3

days of an issue and the facility provides reasonable
4

evidence demonstrating its timely compliance with
5

federal data submission requirements for the quarter
6

of record. If such evidence cannot be provided to the
7

Department, the STAR rating assigned to the facility
8

shall be reduced by one from the prior quarter.
9

(E) The Department shall review quality metrics
10

used for payment of the quality pool and make
11

recommendations for any associated changes to the
12

methodology for distributing quality pool payments in
13

consultation with associations representing long-term
14

care providers, consumer advocates, organizations
15

representing workers of long-term care facilities, and
16

payors. The Department may establish, by rule, changes
17

to the methodology for distributing quality pool
18

payments.
19

(F) The Department shall disburse quality pool
20

payments from the Long-Term Care Provider Fund on a
21

monthly basis in amounts proportional to the total
22

quality pool payment determined for the quarter.
23

(G) The Department shall publish any changes in
24

the methodology for distributing quality pool payments
25

prior to the beginning of the measurement period or
26

quality base period for any metric added to the

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distribution's methodology.
2

(2) Payments based on CNA tenure, promotion, and CNA
3

training for the purpose of increasing CNA compensation.
4

It is the intent of this subsection that payments made in
5

accordance with this paragraph be directly incorporated
6

into increased compensation for CNAs. As used in this
7

paragraph, "CNA" means a certified nursing assistant as
8

that term is described in Section 3-206 of the Nursing
9

Home Care Act, Section 3-206 of the ID/DD Community Care
10

Act, and Section 3-206 of the MC/DD Act. The Department
11

shall establish, by rule, payments to nursing facilities
12

equal to Medicaid's share of the tenure wage increments
13

specified in this paragraph for all reported CNA employee
14

hours compensated according to a posted schedule
15

consisting of increments at least as large as those
16

specified in this paragraph. The increments are as
17

follows: an additional $1.50 per hour for CNAs with at
18

least one and less than 2 years' experience plus another
19

$1 per hour for each additional year of experience up to a
20

maximum of $6.50 for CNAs with at least 6 years of
21

experience. For purposes of this paragraph, Medicaid's
22

share shall be the ratio determined by paid Medicaid bed
23

days divided by total bed days for the applicable time
24

period used in the calculation. In addition, and additive
25

to any tenure increments paid as specified in this
26

paragraph, the Department shall establish, by rule,

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payments supporting Medicaid's share of the
2

promotion-based wage increments for CNA employee hours
3

compensated for that promotion with at least a $1.50
4

hourly increase. Medicaid's share shall be established as
5

it is for the tenure increments described in this
6

paragraph. Qualifying promotions shall be defined by the
7

Department in rules for an expected 10-15% subset of CNAs
8

assigned intermediate, specialized, or added roles such as
9

CNA trainers, CNA scheduling "captains", and CNA
10

specialists for resident conditions like dementia or
11

memory care or behavioral health.
12

(m) The Department shall work with nursing facility
13
industry representatives to design policies and procedures to
14
permit facilities to address the integrity of data from
15
federal reporting sites used by the Department in setting
16
facility rates.
17
(Source: P.A. 102-77, eff. 7-9-21; 102-558, eff. 8-20-21;
18
102-1035, eff. 5-31-22; 102-1118, eff. 1-18-23; 103-102,
19
Article 40, Section 40-5, eff. 1-1-24; 103-102, Article 50,
20
Section 50-5, eff. 1-1-24; 103-593, eff. 6-7-24; 103-605, eff.
21
7-1-24.)

22

Section 99.
Effective date.
This Act takes effect upon
23
becoming law.

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