Bill Text: IL HB2560 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that upon application to the Department of Healthcare and Family Services, supportive living program settings may convert non-dementia care setting units to dementia care setting units. Provides that all conversions must be operational within one year of approval and meet criteria specific to certification for dementia care setting units outlined in the Illinois Administrative Code.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-04 - Referred to Rules Committee [HB2560 Detail]

Download: Illinois-2025-HB2560-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2560 Introduced , by Rep. Anna Moeller SYNOPSIS AS INTRODUCED:
305 ILCS 5/5-5.01a
Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that upon application to the Department of Healthcare and Family Services, supportive living program settings may convert non-dementia care setting units to dementia care setting units. Provides that all conversions must be operational within one year of approval and meet criteria specific to certification for dementia care setting units outlined in the Illinois Administrative Code.
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A BILL FOR
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AN ACT concerning public aid.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Public Aid Code is amended by
changing Section 5-5.01a as follows:
(305 ILCS 5/5-5.01a)
Sec. 5-5.01a. Supportive living facilities program.
(a) The Department shall establish and provide oversight
for a program of supportive living facilities that seek to
promote resident independence, dignity, respect, and
well-being in the most cost-effective manner.
A supportive living facility is (i) a free-standing
facility or (ii) a distinct physical and operational entity
within a mixed-use building that meets the criteria
established in subsection (d). A supportive living facility
integrates housing with health, personal care, and supportive
services and is a designated setting that offers residents
their own separate, private, and distinct living units.
Sites for the operation of the program shall be selected
by the Department based upon criteria that may include the
need for services in a geographic area, the availability of
funding, and the site's ability to meet the standards.
(b) Beginning July 1, 2014, subject to federal approval,

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the Medicaid rates for supportive living facilities shall be
equal to the supportive living facility Medicaid rate
effective on June 30, 2014 increased by 8.85%. Once the
assessment imposed at Article V-G of this Code is determined
to be a permissible tax under Title XIX of the Social Security
Act, the Department shall increase the Medicaid rates for
supportive living facilities effective on July 1, 2014 by
9.09%. The Department shall apply this increase retroactively
to coincide with the imposition of the assessment in Article
V-G of this Code in accordance with the approval for federal
financial participation by the Centers for Medicare and
Medicaid Services.
The Medicaid rates for supportive living facilities
effective on July 1, 2017 must be equal to the rates in effect
for supportive living facilities on June 30, 2017 increased by
2.8%.
The Medicaid rates for supportive living facilities
effective on July 1, 2018 must be equal to the rates in effect
for supportive living facilities on June 30, 2018.
Subject to federal approval, the Medicaid rates for
supportive living services on and after July 1, 2019 must be at
least 54.3% of the average total nursing facility services per
diem for the geographic areas defined by the Department while
maintaining the rate differential for dementia care and must
be updated whenever the total nursing facility service per
diems are updated. Beginning July 1, 2022, upon the

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implementation of the Patient Driven Payment Model, Medicaid
rates for supportive living services must be at least 54.3% of
the average total nursing services per diem rate for the
geographic areas. For purposes of this provision, the average
total nursing services per diem rate shall include all add-ons
for nursing facilities for the geographic area provided for in
Section 5-5.2. The rate differential for dementia care must be
maintained in these rates and the rates shall be updated
whenever nursing facility per diem rates are updated.
Subject to federal approval, beginning January 1, 2024,
the dementia care rate for supportive living services must be
no less than the non-dementia care supportive living services
rate multiplied by 1.5.
(b-5) Subject to federal approval, beginning January 1,
2025, Medicaid rates for supportive living services must be at
least 54.75% of the average total nursing services per diem
rate for the geographic areas defined by the Department and
shall include all add-ons for nursing facilities for the
geographic area provided for in Section 5-5.2.
(c) The Department may adopt rules to implement this
Section. Rules that establish or modify the services,
standards, and conditions for participation in the program
shall be adopted by the Department in consultation with the
Department on Aging, the Department of Rehabilitation
Services, and the Department of Mental Health and
Developmental Disabilities (or their successor agencies).

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(d) Subject to federal approval by the Centers for
Medicare and Medicaid Services, the Department shall accept
for consideration of certification under the program any
application for a site or building where distinct parts of the
site or building are designated for purposes other than the
provision of supportive living services, but only if:
(1) those distinct parts of the site or building are
not designated for the purpose of providing assisted
living services as required under the Assisted Living and
Shared Housing Act;
(2) those distinct parts of the site or building are
completely separate from the part of the building used for
the provision of supportive living program services,
including separate entrances;
(3) those distinct parts of the site or building do
not share any common spaces with the part of the building
used for the provision of supportive living program
services; and
(4) those distinct parts of the site or building do
not share staffing with the part of the building used for
the provision of supportive living program services.
(e) Facilities or distinct parts of facilities which are
selected as supportive living facilities and are in good
standing with the Department's rules are exempt from the
provisions of the Nursing Home Care Act and the Illinois
Health Facilities Planning Act.

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(f) Section 9817 of the American Rescue Plan Act of 2021
(Public Law 117-2) authorizes a 10% enhanced federal medical
assistance percentage for supportive living services for a
12-month period from April 1, 2021 through March 31, 2022.
Subject to federal approval, including the approval of any
necessary waiver amendments or other federally required
documents or assurances, for a 12-month period the Department
must pay a supplemental $26 per diem rate to all supportive
living facilities with the additional federal financial
participation funds that result from the enhanced federal
medical assistance percentage from April 1, 2021 through March
31, 2022. The Department may issue parameters around how the
supplemental payment should be spent, including quality
improvement activities. The Department may alter the form,
methods, or timeframes concerning the supplemental per diem
rate to comply with any subsequent changes to federal law,
changes made by guidance issued by the federal Centers for
Medicare and Medicaid Services, or other changes necessary to
receive the enhanced federal medical assistance percentage.
(g) All applications for the expansion of supportive
living dementia care settings involving sites not approved by
the Department by January 1, 2024 (Public Act 103-102) may
allow new elderly non-dementia units in addition to new
dementia care units. The Department may approve such
applications only if the application has: (1) no more than one
non-dementia care unit for each dementia care unit and (2) the

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site is not located within 4 miles of an existing supportive
living program site in Cook County (including the City of
Chicago), not located within 12 miles of an existing
supportive living program site in Alexander, Bond, Boone,
Calhoun, Champaign, Clinton, DeKalb, DuPage, Fulton, Grundy,
Henry, Jackson, Jersey, Johnson, Kane, Kankakee, Kendall,
Lake, Macon, Macoupin, Madison, Marshall, McHenry, McLean,
Menard, Mercer, Monroe, Peoria, Piatt, Rock Island, Sangamon,
Stark, St. Clair, Tazewell, Vermilion, Will, Williamson,
Winnebago, or Woodford counties, or not located within 25
miles of an existing supportive living program site in any
other county.
(h) Beginning January 1, 2025, subject to federal
approval, for a person who is a resident of a supportive living
facility under this Section, the monthly personal needs
allowance shall be $120 per month.
(i) (h) As stated in the supportive living program home
and community-based service waiver approved by the federal
Centers for Medicare and Medicaid Services, and beginning July
1, 2025, the Department must maintain the rate add-on
implemented on January 1, 2023 for the provision of 2 meals per
day at no less than $6.15 per day.
(j) (f) Subject to federal approval, the Department shall
allow a certified medication aide to administer medication in
a supportive living facility. For purposes of this subsection,
"certified medication aide" means a person who has met the

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qualifications for certification under Section 79 of the
Assisted Living and Shared Housing Act and assists with
medication administration while under the supervision of a
registered professional nurse as authorized by Section 50-75
of the Nurse Practice Act. The Department may adopt rules to
implement this subsection.
(k) Upon application to the Department, supportive living
program settings may convert non-dementia care setting units
to dementia care setting units. All conversions must be
operational within one year of approval and meet criteria
specific to certification for dementia care setting units
outlined in 89 Ill. Adm. Code 146 Subpart B and E.
(Source: P.A. 102-43, eff. 7-6-21; 102-699, eff. 4-19-22;
103-102, Article 20, Section 20-5, eff. 1-1-24; 103-102,
Article 100, Section 100-5, eff. 1-1-24; 103-593, Article 15,
Section 15-5, eff. 6-7-24; 103-593, Article 100, Section
100-5, eff. 6-7-24; 103-593, Article 165, Section 165-5, eff.
6-7-24; 103-605, eff. 7-1-24; 103-886, eff. 8-9-24; revised
10-8-24.)