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HB 2788

Statewide Recovery Fund; transfers of funds; effective date; emergency.

2025 Regular Session Introduced by Trey Caldwell

Raises Medicaid/waiver payments to fund DSPs and frontline staff wages at 150% of minimum wage starting Jan 1, 2026, plus employment-expense adjustments.

Becomes law without Governor's signature 05/29/2025
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Bill Summary · HB 2788

Summary — HB 2788 (DHS — Direct Support Personnel Wage Increases)

Status: Enacted (Signed by Governor 2025-06-20; effective immediately)
Primary sponsor: Rep. Laura Faver Dias. Noted co‑sponsors include Nicolle Grasse, Lilian Jiménez, Nabeela Syed, Michelle Mussman, and others.

Purpose

Require state agencies to increase Medicaid/waiver reimbursement rates so that direct support personnel (DSPs) and certain frontline staff who provide services to people with intellectual/developmental disabilities (ID/DD) earn a wage equal to 150% of the applicable minimum wage, starting for services on or after January 1, 2026. Provide related rate adjustments and rulemaking authority to implement the increases.

Key provisions

  • Directs the Department of Healthcare and Family Services (HFS), in collaboration with the Department of Human Services (DHS), to amend:
    • The Home and Community‑Based Services (HCBS) Waiver for Adults with Developmental Disabilities (to reflect wage funding for community/residential providers); and
    • The Medicaid (Title XIX) State Plan (to reflect wage funding at ID/DD and MC/DD facilities).
  • Rate requirement: reimbursement methodology must be increased sufficiently to provide a wage equal to 150% of the applicable statewide, regional, or local minimum wage for:
    • All direct support personnel, and
    • Other frontline personnel (not covered by Bureau of Labor Statistics average‑wage adjustments) who work in residential and community day services settings.
  • Rates for services delivered on/after January 1, 2026 must also include adjustments for employment‑related expenses (as defined by DHS rule).
  • DHS and HFS are required to adopt implementing rules, including emergency rules if needed, to expedite implementation.
  • Amends the Mental Health and Developmental Disabilities Administrative Act and the Medical Assistance provisions of the Illinois Public Aid Code to effect these changes.

Who is affected

  • Directly affected: DSPs and frontline direct care staff in residential, community day, and ID/DD/MC/DD facility settings.
  • Indirectly affected: Community‑based providers and facility operators who will receive higher Medicaid/waiver rates to fund wage and related employment expense increases.
  • Administrative: DHS and HFS (rulemaking and waiver/State Plan amendments); federal CMS (approval of Title XIX State Plan amendment and possible Waiver amendments).

Timeline & procedure

  • Wage increases apply to services delivered on or after January 1, 2026.
  • HFS must submit a Title XIX State Plan amendment to CMS; relevant waiver amendments (HCBS) require federal approval.
  • DHS is authorized to promulgate emergency rules to implement changes quickly; emergency rule authority may be time‑limited per statute.

Potential impacts

  • Increased state Medicaid and waiver expenditures to support higher provider reimbursement rates and employment‑related expense adjustments.
  • Intended to improve DSP compensation, recruitment, and retention; may require budget appropriations and federal approval before full effect.
  • Providers will need to document compliance with wage requirements; DHS/HFS will implement administrative and regulatory changes.

Notes

  • The provided document package included unrelated text from another state's (Arizona) HB 2788 concerning utility integrated resource planning. This summary focuses on the Illinois DHS/DSP wage provisions that match the sponsors, legislative actions, and timeline included in the record.

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

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