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SB 3727

MEDICAID-COMMUNTY DAY SERVICES

104th Regular Session Introduced by Li Arellano and 3 co-sponsors

The bill would remove the 5-hour daily billing cap for community day services (pending federal waiver approval) and reissue a cost/wage survey to guide transportation funding and r

Added as Co-Sponsor Sen. Li Arellano, Jr.
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Bill Summary · SB 3727

Summary of SB 3727 (104th General Assembly, Illinois)

Purpose and intent

SB 3727 seeks to reform funding and administration of community day services for adults with intellectual and developmental disabilities (IDD) in Illinois. The bill aims to (1) reissue a prior cost-and-wage survey to guide transportation-related funding and (2) modify the Home and Community-Based Services Waiver for Adults with Developmental Disabilities to remove a 5-hour-per-day billing maximum for community day services, subject to federal approval. The effective date is July 1, 2026.

Key provisions

  • Cost and wage survey for transportation funding (Section 74, Mental Health and Developmental Disabilities Administrative Act):

    • Beginning July 1, 2026, the Department of Human Services (DHS) must reissue the original cost and wage survey from the Guidehouse Rate Study.
    • The survey is to be used to determine rate increases in transportation funding for administering community day services to adults with IDD.
    • The survey may include: provider contact information, total costs of employee salaries and benefits, staff turnover, types of services, day services costs, supported employment costs, transportation-related costs, and related data.
    • DHS must adopt rules to implement these provisions.

  • Home and Community-Based Services Waiver amendment (Public Aid Code, 305 ILCS 5):

    • The Department of Healthcare and Family Services (HFS) must file an amendment to the Home and Community-Based Services Waiver Program for Adults with Developmental Disabilities.
    • The amendment would remove the 5-hour-per-day billing maximums for community day services. It does not change monthly or yearly billing maximums.
    • Implementation is contingent on federal waiver approval.

Who/what is affected

  • Directly affected:

    • Adults with intellectual and developmental disabilities receiving community day services.
    • Community-based providers delivering day services in Illinois.
    • Transportation funding associated with administration of community day services.
    • DHS and HFS, which administer rate-setting, waivers, and related rules.

  • Indirect effects:

    • Potential changes to wage levels and benefits for frontline staff (via the reissued cost/wage survey and subsequent rate adjustments).
    • Possible shifts in provider staffing, budgeting, and operational planning due to revised transportation funding and billing practices.

Procedural and timeline details

  • Effective date: July 1, 2026.
  • Rules and implementation: DHS and HFS must adopt rules to implement the new provisions, including emergency rules where authorized.
  • Federal approvals: Many rate adjustments and waiver changes are contingent on federal approval of relevant Waiver Amendments, as noted throughout the bill (sections addressing wage increases and rate methodologies).
  • Previous wage and rate provisions reaffirmed: The bill references and continues to operate within historical wage-increase mechanisms for frontline staff and direct care workers, adjusting the rate methodology over multiple years (from 2022 onward) and tying wage increases to survey data and federal guidance.

Practical impact considerations

  • If federal approval is attained, the bill would:
    • Improve funding transparency for transportation and other costs in community day services.
    • Allow higher per-hour wage supports for direct care and frontline staff starting in 2026 and continuing in later years, with gradients of increases tied to specific years (2022-2026 timelines reflected in the existing framework).
    • Lift the daily billing cap for community day services, potentially increasing flexibility for service delivery, while preserving monthly and annual caps.
  • The overall effect would be to enhance compensation for caregivers and adjust funding to support transportation and other administrative costs, potentially improving service quality and workforce stability.

Note on status

  • Introduced February 5, 2026, with multiple co-sponsors.
  • The measure is currently pending committee action and is subject to the standard legislative process, including potential amendments and federal waiver approvals before taking effect.

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

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