Early Intervention Provider Rate Increase Falls Short of What is Needed to Stabilize System

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%. 

The proposed rate increases are an important acknowledgment of the crisis but not nearly enough to address it. Even with these targeted adjustments, many provider rates remain significantly below the modeled cost of delivering services. Without deeper investment, staffing shortages and harmful service delays will persist. The newly developed cost model offers a powerful, data-driven tool to guide future policy and investment decisions—but it will only be effective if Illinois continues to act on what the data clearly shows. Service delays have nearly doubled over the last three years, reaching historically high levels. 

The fight for greater investment in EI for FY26 is far from over. We urge all EI stakeholders—providers, families, and advocates—to urge the Illinois General Assembly to appropriate an additional $60 million in funding in the upcoming state budget. This critical investment would allow IDHS to authorize more substantial rate increases, move closer to covering the full cost of services and stabilize the EI system for infants, toddlers and their families. 

Join us in calling on the General Assembly to substantially increase EI funding in the FY26 state budget — and help ensure infants, toddlers, and their families can get the services they need and are entitled to receive!