Bill Text: IL HB4756 | 2025-2026 | 104th General Assembly | Engrossed

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Bill Title: Amends the Administration Article of the Illinois Public Aid Code. Provides that disbursements shall be made from the Public Aid Recoveries Trust Fund for the payment of contingency fees to third-party entities that the Office of Inspector General authorizes to conduct payment recapture audits and other specified audits under the medical assistance program.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Engrossed - Dead) 2026-04-16 - Referred to Assignments [HB4756 Detail]

Download: Illinois-2025-HB4756-Engrossed.html

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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 12-9 as follows:
(305 ILCS 5/12-9) (from Ch. 23, par. 12-9)
Sec. 12-9. Public Aid Recoveries Trust Fund; uses. The
Public Aid Recoveries Trust Fund shall consist of (1)
recoveries by the Department of Healthcare and Family Services
(formerly Illinois Department of Public Aid) authorized by
this Code in respect to applicants or recipients under
Articles III, IV, V, and VI, including recoveries made by the
Department of Healthcare and Family Services (formerly
Illinois Department of Public Aid) from the estates of
deceased recipients, (2) recoveries made by the Department of
Healthcare and Family Services (formerly Illinois Department
of Public Aid) in respect to applicants and recipients under
the Children's Health Insurance Program Act, and the Covering
ALL KIDS Health Insurance Act, (2.5) recoveries made by the
Department of Healthcare and Family Services in connection
with the imposition of an administrative penalty as provided
under Section 12-4.45, (3) federal funds received on behalf of
and earned by State universities, other State agencies or

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departments, and local governmental entities for services
provided to applicants or recipients covered under this Code,
the Children's Health Insurance Program Act, and the Covering
ALL KIDS Health Insurance Act, (3.5) federal financial
participation revenue related to eligible disbursements made
by the Department of Healthcare and Family Services from
appropriations required by this Section, and (4) all other
moneys received to the Fund, including interest thereon. The
Fund shall be held as a special fund in the State Treasury.
Disbursements from this Fund shall be only (1) for the
reimbursement of claims collected by the Department of
Healthcare and Family Services (formerly Illinois Department
of Public Aid) through error or mistake, (2) for payment to
persons or agencies designated as payees or co-payees on any
instrument, whether or not negotiable, delivered to the
Department of Healthcare and Family Services (formerly
Illinois Department of Public Aid) as a recovery under this
Section, such payment to be in proportion to the respective
interests of the payees in the amount so collected, (3) for
payments to the Department of Human Services for collections
made by the Department of Healthcare and Family Services
(formerly Illinois Department of Public Aid) on behalf of the
Department of Human Services under this Code, the Children's
Health Insurance Program Act, and the Covering ALL KIDS Health
Insurance Act, (4) for payment of administrative expenses
incurred in performing the activities authorized under this

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Code, the Children's Health Insurance Program Act, and the
Covering ALL KIDS Health Insurance Act, (5) for payment of
fees to persons or agencies in the performance of activities
pursuant to the collection of monies owed the State that are
collected under this Code, the Children's Health Insurance
Program Act, and the Covering ALL KIDS Health Insurance Act,
(6) separate from those disbursements allowed under items (4)
and (5), for payment of contingency fees to third-party
entities that the Office of Inspector General authorizes to
conduct audits under Sections 12-4.25 and 12-4.40, or any
similar audits required by State or federal law, (7) for
payments of any amounts which are reimbursable to the federal
government which are required to be paid by State warrant by
either the State or federal government, and (8) (7) for
payments to State universities, other State agencies or
departments, and local governmental entities of federal funds
for services provided to applicants or recipients covered
under this Code, the Children's Health Insurance Program Act,
and the Covering ALL KIDS Health Insurance Act. Disbursements
from this Fund for purposes of items (4) and (5) of this
paragraph shall be subject to appropriations from the Fund to
the Department of Healthcare and Family Services (formerly
Illinois Department of Public Aid).
The balance in this Fund after payment therefrom of any
amounts reimbursable to the federal government, and minus the
amount anticipated to be needed to make the disbursements

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authorized by this Section, shall be certified by the Director
of Healthcare and Family Services and transferred by the State
Comptroller to the Drug Rebate Fund or the Healthcare Provider
Relief Fund in the State Treasury, as appropriate, on at least
an annual basis by June 30th of each fiscal year. The Director
of Healthcare and Family Services may certify and the State
Comptroller shall transfer to the Drug Rebate Fund or the
Healthcare Provider Relief Fund amounts on a more frequent
basis.
(Source: P.A. 103-593, eff. 6-7-24.)