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HR 1 Phase One Messaging Toolkit: Update Your Address
On July 4, 2025, the federal budget reconciliation bill, HR 1, was signed into law. This new law makes major changes to Medicaid, the Children’s Health Insurance Program (CHIP), and the Affordable Care Act Marketplace.
The law includes a $911 billion reduction in federal Medicaid funding over the next 10 years. These changes will affect how health coverage programs are funded and managed. They may also impact eligibility, enrollment, benefits, and how services are delivered—both now and in the years ahead.
The Illinois Department of Healthcare and Family Services (HFS) is launching Phase One of its communications strategy to prepare Medicaid customers for upcoming federal changes under HR 1.
Beginning in 2027, new federal requirements may require some adult Medicaid customers to report work, school, or training activities. Many customers will be exempt, and no one will be required to take action until they receive direct notice from the State. However, ensuring customers receive timely and accurate information is critical.
This work will require coordination, communication, and collaboration. We have developed a comprehensive communications strategy in partnership with the Governor’s Office and key sister agencies, including the Department of Human Services. Transparent, frequent engagement with stakeholders, including community partners, providers, advocates, and customers, will be essential as we navigate these changes together.
We are asking for your partnership. Please use the messages and materials in the Phase One toolkit below and share them with Medicaid customers through your channels. The toolkit emphasizes to customers the importance of keeping their contact information on file with the State updated, especially now, with eligibility changes taking effect later this year and in 2027.
