Illinois HB 5509: DHFS-FFS SUPPLEMENTAL PAYMENTS

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
HB5509

Introduced 2/13/2026, by Rep. Hoan Huynh 

SYNOPSIS AS INTRODUCED:

305 ILCS 5/5A-12.7

 Amends the Hospital Provider Funding Article of the Illinois Public Aid Code. Provides that, beginning January 1, 2027, if an Illinois freestanding psychiatric hospital reopens a previously closed hospital facility within 4 calendar years of that hospital facility's closure, and the previously closed hospital facility qualified for fee-for-service supplemental payments, then the Illinois freestanding psychiatric hospital shall receive an annual payment equal to $200 per covered inpatient day contained in paid fee-for-service claims and $200 per paid fee-for-service outpatient claim for dates of service of the closed hospital facility in Calendar Year 2019 in the Department of Healthcare and Family Services' Enterprise Data Warehouse as of May 11, 2020. Provides that "closed hospital facility" includes hospitals that have been terminated from participation in the medical assistance program. Effective immediately.

LRB104 20560 KTG 34039 b

A BILL FOR

HB5509LRB104 20560 KTG 34039 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 5A-12.7 as follows:

6 (305 ILCS 5/5A-12.7)

7 Sec. 5A-12.7. Continuation of hospital access payments on 

8and after July 1, 2020.

9 (a) To preserve and improve access to hospital services, 

10for hospital services rendered on and after July 1, 2020, the 

11Department shall, except for hospitals described in subsection 

12(b) of Section 5A-3, make payments to hospitals or require 

13capitated man