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HB 2550

DHFS-ALZHEIMER CARE UNIT RATES

104th Regular Session Introduced by Natalie Manley

Illinois would boost Medicaid payments fivefold for nursing facilities that disclose Alzheimer’s special care units, starting Jan 1, 2026, with DHFS updating status annually.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 2550

Summary — HB 2550 (Illinois) — "DHFS — Alzheimer Care Unit Rates"

Status: Rule 19(a) / Re-referred to Rules Committee
Introduced: Feb 4–6, 2025
Primary sponsor (Illinois): Rep. Natalie A. Manley
Statutory change proposed: amend 305 ILCS 5/5-5.2 (Illinois Public Aid Code)

Main purpose

To increase Medicaid reimbursement rates for nursing facilities that have disclosed they operate Alzheimer’s (Alzheimer’s disease and related dementias) special care units under the Alzheimer’s Disease and Related Dementias Special Care Disclosure Act, by applying a 5× multiplier to the facility’s rate for qualifying units beginning January 1, 2026.

Key provisions

  • Amends Section 5-5.2 of the Illinois Public Aid Code (305 ILCS 5/5-5.2).
  • Starting January 1, 2026, the Medicaid payment rate for nursing facilities that have disclosed their status as Alzheimer’s special care units must be multiplied by 5 (i.e., a fivefold increase) for applicable services.
  • Requires the Illinois Department of Healthcare and Family Services (DHFS) to update each nursing facility’s Alzheimer’s special care unit status when determining rates in effect each January 1.

Who would be affected

  • Nursing facilities operating and disclosing Alzheimer’s special care units (direct beneficiaries — higher per-diem reimbursement under Medicaid).
  • Residents who receive care in those facilities (indirectly, via potential changes in facility resources or admission policies).
  • Illinois Medicaid program and state budget — increased Medicaid payments to qualifying facilities.
  • DHFS — administrative responsibility to track and update facility status annually.

Timeline / procedural notes

  • Effective date for the rate change: services provided on or after January 1, 2026.
  • Bill introduced in early February 2025; as of 2025-03-21 it was subject to Rule 19(a) and re-referred to the Rules Committee (committee referrals and readings are listed in the legislative record).
  • The bill text amends a specific subsection of the Public Aid Code (305 ILCS 5/5-5.2).

Fiscal and policy implications

  • A fivefold increase in rates for qualifying units would materially increase Medicaid long‑term care expenditures; the bill does not include an explicit appropriation or fiscal note in the provided text.
  • Could create strong financial incentives for facilities to self-designate as Alzheimer’s special care units; administrative safeguards and verification procedures (beyond the existing disclosure statute) are not detailed in the amendment.
  • Oversight needs: verification of disclosure accuracy, fraud prevention, and assessment of whether increased payments translate into better dementia-specific care.

Notes / data quality

  • The provided bill package contains extraneous material (text apparently from a different HB 2550 from Arizona). This summary focuses exclusively on the Illinois Public Aid Code amendment concerning Alzheimer’s special care unit rates (305 ILCS 5/5-5.2) as introduced by Rep. Natalie A. Manley. If you want, I can prepare a separate summary of the unrelated Arizona bill content.

Compiled from official sources — confirm details with the bill’s official record.

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