Illinois SB 3587: MEDICAID-SNH-LOW VOL ADJUSTER

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
SB3587

Introduced 2/5/2026, by Sen. Emil Jones, III 

SYNOPSIS AS INTRODUCED:

305 ILCS 5/14-12.5

 Amends the Hospital Services Trust Fund Article of the Illinois Public Aid Code. In provisions requiring the Department of Healthcare and Family Services to pay safety-net hospitals a low volume add-on payment of $200 for each inpatient General Acute and Psychiatric day of care, removes the December 31, 2026 sunset date for such add-on payments. Effective immediately.

LRB104 18302 KTG 31742 b

A BILL FOR

SB3587LRB104 18302 KTG 31742 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 14-12.5 as follows:

6 (305 ILCS 5/14-12.5)

7 Sec. 14-12.5. Hospital rate updates. 

8 (a) Notwithstanding any other provision of this Code, the 

9hospital rates of reimbursement authorized under Sections 

105-5.05, 14-12, and 14-13 of this Code shall be adjusted in 

11accordance with the provisions of this Section.

12 (b) Notwithstanding any other provision of this Code, 

13effective for dates of service on and after January 1, 2024, 

14subject to federal approval, hospital reimbursement rates 

15shall be revised as follows:

16 (1) For inpatient general acute care services, the 

17 statewide-standardized amount and the per diem rates for 

18 hospitals exempt from the APR-DRG reimbursement system, in 

19 effect January 1, 2023, shall be increased by 10%.

20 (2) For inpatient psychiatric services:

21 (A) For safety-net hospitals, the hospital 

22 specific per diem rate in effect January 1, 2023 and 

23 the minimum per diem rate