Illinois waiver updates take effect Jan. 1

Illinois’ FY2026 developmental disabilities waiver amendments were approved by the Centers for Medicare and Medicaid Services and will take effect January 1, 2026. The amendments impact developmental disability services statewide and include targeted updates for children’s services, adult home-based supports, and workforce-related reimbursement.

Children’s waivers and provider rates

The FY2026 amendments include changes to the Children’s Support Waiver. Under the approved update, the Children’s Support Waiver will receive a 5% service budget increase plus SSI COLA. Illinois also included an adjustment for children’s residential services. Children’s Residential Providers will receive an 8.8% rate increase, reflecting a separate update from the Children’s Support Waiver budget change.

Adult home-based waiver changes

For adults, the amendments include updates to the Adults with Developmental Disabilities Home-Based Waiver. Similar to the children’s waiver adjustment, the Adults with Developmental Disabilities Home-Based Waiver will receive a 5% service budget increase plus SSI COLA. These changes are part of the broader set of FY2026 updates approved for statewide developmental disability services.

DSP reimbursement update for select services

The amendments also address reimbursement tied to workforce needs. For the DSP Workforce, Illinois approved a $0.80 hourly reimbursement increase for select adult waiver services. Taken together, the approved FY2026 waiver amendments are intended to improve provider sustainability, strengthen service capacity, and support workforce retention across Illinois.