In April of this year, the Illinois Department of Human Services (IDHS) announced a proposed rate increase for Early Intervention (EI) providers, funded by $10 million in one-time accumulated Medicaid dollars, pending approval of the Fiscal Year 2026 budget. The increase, informed by the new EI cost model and service delay data, prioritizes services where provider rates are currently below 50% of the modeled cost and for services that have the greatest waiting lists. Developmental Therapy (DT), Physical Therapy (PT) and Vision services are slated to receive an 8% rate increase, while Occupational Therapy (OT), Speech Therapy, Audiology and Aural Rehabilitation will receive a 5% boost. Service coordinators will also see a 5% increase. Many essential services—including Nursing, Nutrition, Psychology, Social Work, Interpretation and Medical Diagnostics—will see no increase at this time.
While the Department’s plan to increase rates for many providers in FY26 is a welcome one, it represents only a fraction of what is needed to stabilize Illinois’ EI system. A recent New America blog post by Abby McCartney, Senior Director at Afton Partners, highlights findings from the state-commissioned cost model developed with extensive input from hundreds of EI providers and families. Their research shows that EI providers currently earn about half of what they could make in other fields requiring similar credentials—worsening Illinois’ growing provider shortage, ballooning caseloads, and increasing wait times for families. The model calls for increasing provider rates by an average of 95%.