Provider Notice Issued 06/03/2025

This is to inform you that the department has determined that your managed care organization is subject to the assessment imposed on Illinois managed care organization member months under the provisions of 305 ILCS 5/5H.

Your organization’s assessment remittance notices for fiscal year 2026, reflecting the managed care organization assessment per statute have been loaded on to the Department’s SharePoint site. Directions to access these remittance notices should have already been received via email by each organization’s designated contacts.  If you do not have SharePoint access, please contact us immediately at HFS.ProviderAssessmentUnit@illinois.gov or 217-524-7110.

Each remittance card has the organization’s name, address, contact information, tax identification number, due date, and the tax amount owed.  Also included in the notice is a tax calculation worksheet detailing the calendar year 2023 base year data for the assessment.

The tiers for fiscal year 2026 are established as follows:

1)         Tier 1 - $115.00 includes the first 4,195,000 member months in a Medicaid MCO during the base year;
2)         Tier 2 - $1.30 includes member months over 4,195,000 in a Medicaid MCO during the base year; and
3)         Tier 3 - $4.40 includes member months during the base year in an MCO that is not a Medicaid MCO.

HFS currently accepts and encourages ACH Credit/Wire Transfer payments for the monthly Managed Care Organization Assessment fees.  If you do not have the Department’s banking information to initiate payment, please contact us immediately at HFS.ProviderAssessmentUnit@illinois.gov or 217-524-7110.

To ensure proper crediting of the organization’s account, please be sure to include the following underlined information when initiating the monthly Managed Care assessment electronic payments:

ORIG CO NAME: MCO Organization Name

ORIG ID: Taxpayer Identification Number (TIN), unless hard coded as bank account number

ENTRY DESCR: HFS Tax ID, this number can be found on the remittance cards

ENTRY CLASS: CCD

TRACE NO: Bank Information

ENTRY DATE: yymmdd

IND ID NO: Bank Information

IND NAME: MCO Assessment Tax, unless hard coded as account/vendor

REMARK: July 2025 MCO Assessment Tax Payment [and] TIN, if not supplied in ORIG ID, above

ORIG BANK: Bank Name

PLEASE NOTE:  Assessment transactions MUST be remitted with a separate transaction from other required HFS payments and designated in the Remarks as such for the Department to credit your accounts accurately.

If you have any questions concerning this information, please do not hesitate to contact the Bureau of Rate Development and Analysis by e-mail at HFS.ProviderAssessmentUnit@illinois.gov, or by telephone at 217-524-7110.

Kathleen Staley, Chief
Bureau of Rate Development and Analysis