SB3797

SB3797 modifies Medicaid inpatient utilization rates for Illinois hospitals, excluding VA-funded care, and adjusts payments based on utilization.

SB3797 amends the Illinois Public Aid Code to modify the Medicaid inpatient utilization rate calculation for hospitals, excluding days of care funded by the U.S. Department of Veterans Affairs. Effective October 1, 2026, for rate year 2027 and beyond, the new rate excludes VA-funded care from both the numerator and denominator. The bill also adjusts inpatient adjustment payments based on hospitals' Medicaid inpatient utilization rates, with specific criteria for different categories of hospitals. Payments are contingent upon federal approval of changes to the Illinois Title XIX State Plan.