Illinois approves 2026 DD waiver rate increases

Illinois has received federal approval to adjust reimbursement rates for developmental disability (DD) waivers starting January 1, 2026. The Centers for Medicare and Medicaid Services (CMS) formally authorized amendments to the state’s Children’s Support Waiver, Children’s Residential Waiver, and Adults with Developmental Disabilities Waiver for the upcoming fiscal year. These changes are intended to address workforce challenges and provider cost pressures within the IDD service system.

Increases across multiple waivers

The approved amendments include several key rate increases that impact both service participants and providers. Budgets for individuals on the Children’s Support Waiver, as well as those receiving home-based services through the Adult DD Waiver, will see an approximate 5 percent increase effective at the start of 2026. This adjustment is in addition to the standard annual SSI cost-of-living increase.

Providers working under the Children’s Residential Waiver will benefit from an 8.8 percent rate enhancement, reflecting the state’s recognition of operational cost demands. Within adult DD services, reimbursement rates will rise accordingly. Notably, the Direct Support Professional (DSP) wage reimbursement is expected to increase by about $0.80 per hour, aligned with the waiver’s rate methodology. This wage adjustment aims to support workforce recruitment and retention amid widespread staffing challenges.

Context and implications for service delivery

These rate revisions come as Illinois and CMS respond to ongoing concerns about sustaining adequate service capacity. Providers have contended with rising expenses and difficulties in maintaining a stable workforce. The updated reimbursement structure is designed to improve financial viability across the IDD service network and enhance access for people receiving supports through these waivers.

By implementing these increases, Illinois continues to align its policies with efforts to strengthen IDD services while supporting those who provide care. The changes reflect a coordinated approach to ensuring quality service delivery and addressing economic factors that directly affect participants and providers alike.