Bill

HB 3534

MEDICAID TRANSPARENCY ACT

104th Regular Session Introduced by Tony McCombie and 3 co-sponsors

Requires DHFS to publish annual Medicaid funding and expenditure reports by service type, detailing all funds, federal matches, and 2018–2025 receipts/expenditures, starting 2026.

Added Co-Sponsor Rep. Dan Ugaste

WeVote Research Nonpartisan

Bill Summary · HB 3534

Summary: HB 3534 — Medicaid Transparency Act (Illinois)

Overview

HB 3534, introduced February 18, 2025 by Rep. Tony M. McCombie (with cosponsors Rep. Jennifer Sanalitro, Rep. Kevin Schmidt, and Rep. Dan Ugaste), would add a new transparency requirement to the Illinois Public Aid Code (Administration Article). The bill sets annual reporting obligations for the Department of Healthcare and Family Services (DHFS) focused on the Medical Assistance (Medicaid) program. It is designated as an “Act concerning public aid” and becomes law upon enactment.

What the bill would do

Create a new section (305 ILCS 5/12-21.22) requiring DHFS to publish an annual report on its official website.
Reports must cover the prior fiscal year and be published by January 1 of each year, starting January 1, 2026, and every January 1 thereafter.
The first report (due January 1, 2026) must include a compilation of funding receipts and expenditures for State fiscal years 2018 through 2025.

Key provisions and details

Content of the report:
- Detailed accounting organized by type of service.
- All State and federal funds received, allocated, and expended during the reporting year.
- The amount of federal matching funds or reimbursements received by DHFS for:
- Federally mandated services
- State optional services
- Waiver services
- Services provided to noncitizens
- A detailed accounting of any State or federal funds appropriated to DHFS for Medicaid in a prior year that were subsequently allocated and expended for covered services during the reporting year.
First-year scope: The 2026 report must include a compilation of individual reports on funding receipts and expenditures under the Medicaid program for State fiscal years 2018–2025.
Organization of data: Reports must be organized by type of service.

Who is affected

The Department of Healthcare and Family Services (DHFS) would be responsible for preparing, compiling, and publishing the annual transparency reports.
Stakeholders and the public would gain access to detailed, service-type–level financial data related to Medicaid funding and expenditures.

Timeline and procedural notes

Introduced: February 18, 2025
Effective date: Takes effect immediately upon becoming law.
First reporting deadline: January 1, 2026
Ongoing: Each January 1 thereafter
Legislative actions to date:
- Filed February 7, 2025 (Rep. Tony M. McCombie)
- First Reading February 18, 2025; Referred to Rules
- Referred to Intergovernmental Affairs March 24, 2025
- Co-sponsors added (including Rep. Jennifer Sanalitro, Rep. Kevin Schmidt, and Rep. Dan Ugaste) in March 2025

Potential impact and considerations

Aims to enhance transparency around Medicaid funding, including federal matches and reimbursements, by service type and funding source.
Provides the public with a historical baseline (2018–2025) in the first report, improving visibility into how funds are allocated and expended.
Could impose additional administrative requirements on DHFS to compile and publish detailed annual financial reports.
The impact on stakeholders depends on implementation details, data availability, and how comprehensively “type of service” categories are defined in DHFS reporting.

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