Illinois HB 4238: MEDICAID-MENTAL HEALTH

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
HB4238

Introduced 1/14/2026, by Rep. Anna Moeller 

SYNOPSIS AS INTRODUCED:

305 ILCS 5/5-5.01a

 Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that, subject to federal approval, beginning January 1, 2027, any individual age 22 to 64 who is diagnosed as having Alzheimer's disease or a related dementia and is determined to be a person with a disability by the Social Security Administration shall be eligible for services in a supportive living dementia care setting if the individual meets all other eligibility requirements to receive services in a supportive living dementia care setting in accordance with specified administrative rules. Requires the Department of Healthcare and Family Services to apply for any federal waiver necessary to implement the amendatory Act. Effective immediately.

LRB104 16609 KTG 30009 b

A BILL FOR

HB4238LRB104 16609 KTG 30009 b

1 AN ACT concerning public aid.

2 Be it enacted by the People of the State of Illinois, 

3represented in the General Assembly:

4 Section 5. The Illinois Public Aid Code is amended by 

5changing Section 5-5.01a as follows:

6 (305 ILCS 5/5-5.01a)

7 Sec. 5-5.01a. Supportive living facilities program. 

8 (a) The Department shall establish and provide oversight 

9for a program of supportive living facilities that seek to 

10promote resident independence, dignity, respect, and 

11well-being in the most cost-effective manner.

12 A supportive living facility is (i) a free-standing 

13facility or (ii) a distinct physical and operational entity 

14within a mixed-use building that meets the criteria 

15established in subsection (d). A supportive living facility 

16integrates housing wi