IL SB3900

Creates the Illinois Health Care Cost and Payment Board as a 9-member independent body within the Department of Healthcare and Family Services to establish standardized reimbursement rates and global hospital budgets across all payers.

Requires all commercial payers to reimburse hospitals at standardized rates established by the Board beginning January 1, 2027, with rates based on Medicare fee schedules and adjusted for patient acuity, teaching status, and rural/safety-net designation.

Mandates implementation of prospective global hospital budgets for at least 5 hospitals by fiscal year 2028, with all hospitals (except critical access hospitals) required to operate under global budgets by fiscal year 2031.

Prohibits hospitals under global budgets from increasing total annual revenue through increased service volume, and bars payers and hospitals from charging amounts exceeding standardized rates.

Directs the Governor to seek federal Medicare demonstrations and Medicaid waivers to align federal programs with the state's all-payer system.