Bipartisan Lawmakers, Industry Leaders Push for Medicaid Rate Reform to Protect Long-Term Care in Illinois

A bipartisan group of Illinois lawmakers, nursing home administrators, and industry leaders gathered this past week at the State Capitol for a news conference to call for urgent action on Medicaid rate reform to sustain long-term care for the state’s seniors.

The proposed legislation, SB1606/HB2858, aims to update Medicaid reimbursement rates to better reflect the rising costs of care, with the goal of securing an additional $200 million in federal funding for Illinois. The bill, supported by the Health Care Council of Illinois (HCCI), is a response to growing financial strain in Illinois nursing homes, which have seen their costs for essential services such as food and supplies rise by 30 to 50 percent since 2017. Meanwhile, Medicaid reimbursement rates have remained frozen at pre-pandemic levels.

Rep. Bob Rita, a leading sponsor of the legislation, highlighted the urgency of the situation during the news conference: “This is a critical moment for our seniors. We need to act now to ensure they can age with dignity, or they will be left with no safe option for care. Illinois must step up to keep nursing homes open and ensure residents continue receiving quality care.”

Illinois nursing homes have been under significant pressure since the COVID-19 pandemic. In the past few years, 31 facilities have closed, and the state’s largest independent operator filed for bankruptcy in 2024. The closures have hit rural communities particularly hard, forcing seniors to travel further for care and impacting local economies that depend on the nursing home industry. Long-term care facilities in Illinois employ more than 120,000 people, and their closure not only disrupts care but leads to job losses as well.

Rep. Norine Hammond called attention to the specific challenges in rural areas, saying during the news conference, “When a nursing home closes in a small town, it’s not as simple as just going to the next town over. It means losing jobs, losing care options, and hurting communities that may never recover.”

The situation is equally concerning in Chicago and suburban areas, where many families rely on nearby nursing homes. Sen. Ram Villivalam explained, “These homes are lifelines for so many families, but they can’t survive on outdated funding. We need to make sure our seniors are healthy, secure, and able to stay connected to their communities.”

Sen. Dave Koehler added that reforming the funding system is critical for the future of long-term care in Illinois: “We can’t expect 2025 care to be paid for with 2017 dollars. The longer we wait to fix this system, the more vulnerable our long-term care network becomes.”

Sen. Dave Syverson pointed out the wider impact underfunded nursing homes could have on the healthcare system. “Underfunded nursing homes mean more seniors end up in hospitals, which is more expensive and less effective. Nursing homes aren’t just care providers—they’re major employers and critical parts of their communities. We can’t afford to lose them.”

Staffing shortages in Illinois nursing homes are also a pressing concern. Despite efforts to increase wages and offer bonuses, the industry is still struggling with staffing shortages, with many facilities operating with 8 to 10 percent fewer staff than before the pandemic. Nationally, 84 percent of nursing homes report difficulty hiring workers.

Matt Pickering, Executive Director of the Health Care Council of Illinois, explained, “Our providers are doing everything they can to stretch their budgets and recruit workers, but the math no longer works. Without action, more homes will close, caregivers will lose jobs, and vulnerable residents will have fewer choices and less access to care.”

Nursing home administrators shared personal stories of how financial strain is affecting care. Ambreen Qureshi, Vice President of Operations at Legacy Healthcare, explained, “We’re doing our best to provide compassionate care, but without sustainable funding, even the most dedicated providers are being stretched to their limits.”

Kenya O’Neal, Administrator at Cedar Ridge Health and Rehab Center, shared an emotional story from the frontlines: “I have a resident who enjoys eating ice cream with her dinner every night. Recently, I had to stop and ask myself, can we still afford that? That’s a decision I never imagined I’d have to weigh.”

With bipartisan support, SB1606/HB2858 is seen as a critical step to stabilize the long-term care system in Illinois. Without action, more facilities could close, more jobs could be lost, and access to care could become even more limited for the state’s most vulnerable residents.

The lawmakers and industry leaders are united in calling for swift action to pass this bill and ensure that Illinois’ seniors continue to receive the high-quality care they need in the communities they call home.

To learn more about the effort, visit ProtectLongTermCare.com.