Medicaid Federal Policy Changes Fact Sheet

On July 4, 2025, President Trump signed a bill that includes significant changes for the Medicaid public health coverage program. While these changes are coming from the federal government, all states are required by law to implement them. These changes could affect your Medicaid eligibility or require extra steps to receive and maintain Medicaid benefits. Please read the following details carefully.

Medicaid, a public health coverage program that is jointly administered by the federal and state governments, has helped Americans with limited income access healthcare services for 60 years.  Medicaid covers a wide range of people, and you may know it by other names, such as All Kids, Aetna, BlueCross BlueShield, CountyCare, Meridian or Molina.

Medicaid eligibility is based on several financial and non-financial factors, most importantly, household income and family size, with various additional requirements for certain populations. In Illinois, households with income of up to 138% of the federal poverty level are eligible to receive benefits. Children and pregnant persons qualify for Medicaid at higher household income levels.

The federal government plans to implement several drastic cuts and changes to Medicaid that may result in the loss of health insurance coverage for people who rely on this program. Most of the federal changes that affect Medicaid will not take effect right away, but Illinois has begun planning so we can support Medicaid customers through these changes and communicate clearly about what will happen when the changes take effect. The State of Illinois’ primary goal will be to keep as many eligible Illinois Medicaid customers enrolled as possible.

Key changes the federal government plans to make over the next 3 years include:

• New work requirements for many adults to remain eligible: not in effect until January 1st, 2027. Supplemental Nutrition Assistance Program (SNAP) work requirements are currently separate from the new Medicaid Work Requirements. Find more information about the new federal SNAP rules by visiting the Illinois Department of Human Services SNAP Federal Impact Center webpage and viewing the “SNAP Rules are Changing” resource.

• Less time in between Medicaid redeterminations, the process when the state must determine whether a Medicaid customer still meets eligibility requirements needed to stay enrolled and covered by Medicaid: not in effect until January 1st, 2027.

• New cost sharing and co-payments for some Medicaid customers and adults within the Affordable Care Act (ACA) expansion population: not in effect until October 1, 2028.

• The most important thing Medicaid customers can do now is make sure that you have provided up to date contact information to the State of Illinois Department of Healthcare and Family Services (HFS). Be sure to use an address where mail always reaches you. Otherwise, you could miss important correspondence and could risk losing your Medicaid coverage. 

• To verify or change your contact information:

  • Visit abe.illinois.gov and click ‘Manage My Case’, or
  • Fill out the Medicaid Address Change Form. 

• Visit HFS’ online Federal Resource Center for important updates about federal changes.

• Watch your mail for important communications from the Department of Healthcare and Family Services. We will communicate any upcoming coverage changes directly with Medicaid customers.

• Medicaid rules will be changing - English (pdf)
• Medicaid rules will be changing - Spanish (pdf)