Illinois SB 3832: DHFS-MCO PROVIDER ASSESSMENT

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
SB3832

Introduced 2/6/2026, by Sen. Elgie R. Sims, Jr. 

SYNOPSIS AS INTRODUCED:

305 ILCS 5/5H-1

305 ILCS 5/5H-3

305 ILCS 5/5H-7

 Amends the Managed Care Organization Provider Assessment Article of the Illinois Public Aid Code. In provisions concerning tiered managed care assessment rates, provides that beginning July 1, 2026, the Department of Healthcare and Family Services may implement a tax that is based on uniform rates, determined at a level not to exceed limitations imposed by the federal Centers for Medicare and Medicaid Services, that may be set at either a percentage of premium revenue or on a per member per month basis. Removes a provision requiring any upward adjustment to the Tier 3 rate to be the minimum necessary to meet federal statistical tests. In the definition of "member months", removes language exempting enrollment in a Limited Health Services Organization, a Medicare Supplement Plan, or a Federal Employee Health Benefits Plan from the calculation of member months. Expands the definition of "managed care organization" to include an entity that operates as a preferred provider organization. Effective July 1, 2026.

LRB104 20217 KTG 33668 b

A BILL FOR

SB3832LRB104 20217 KTG 33668 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 Sections 5H-1, 5H-3, and 5H-7 as follows:

6 (305 ILCS 5/5H-1)

7 Sec. 5H-1. Definitions. As used in this Article: 

8 "Base year" means the 12-month period from January 1, 2023 

9to December 31, 2023.

10 "Department" means the Department of Healthcare and Family 

11Services