Addus Comments on Budget Increase for Homecare Rates in Texas, Illinois

FRISCO, Texas—Addus HomeCare Corporation, a provider of homecare services, praised recent state legislature budget approvals for in-home care rate increases in the States of Illinois and Texas, which it expects to boost payments for the company’s operations in these markets.

“We are extremely pleased with the commitment to our services by both Illinois and Texas state leadership and the favorable results from their respective budget processes,” said Dirk Allison, chairman and chief executive officer of Addus HomeCare. “In our personal care business, our services have continued to receive reimbursement support from many states where we operate. Illinois is our largest state market for personal care services, and, with the recent acquisition of Gentiva’s personal care operations, Texas now represents our second largest state market. 

On Sat., May 31,  the state of Illinois finalized its fiscal 2026 budget with the inclusion of a 3.9% increase in the base hourly reimbursement rate to $30.80 per hour to sustain a minimum wage of $18.75 per hour for direct in-home care service workers. The state programs affected by this increase include the Illinois Department on Aging, Community Care Program (CCP); Illinois Department of Human Services, Home Services Program (HSP); and Illinois Department of HealthCare and Family Services, Managed Long-Term Service and Supports Program (MLTSS). 

The company expects this rate increase will add approximately $17.5 million in annualized revenue for Addus, with margins consistent with its existing Illinois personal care business in the low 20% and within the state of Illinois’s 77% requirement for caregiver wages and benefits. The Illinois rate increase will be effective Jan. 1, 2026, subject to federal approval.

On June 3, 2025, the state of Texas finalized its fiscal 2026 budget with the inclusion of a 9.9% increase in the base hourly reimbursement rate to $17.13 per hour. The state programs affected by this increase include the Texas Health and Human Services Commission (HHSC), Community Attendant Services Program (CASP) and related programs. 

The company expects to generate approximately $17.7 million in additional annualized revenue assuming implementation consistent with historical precedent of HHSC and the Texas Managed Health Plans, with margins expected to be largely consistent with its existing Texas personal care business just over 20% after caregiver wages are adjusted. The Texas rate increase will be effective Sept. 1, 2025, subject to federal approval.

“We believe our services deliver real value to state Medicaid programs, and there is growing recognition of the benefits of home-based care as a preferred cost-effective care setting,” Allison continued. “We appreciate the support of the leadership of Illinois and Texas, and the commitment to provide this added funding, which will further enhance our ability to provide quality care.”