Addus Homecare Projects $35m Revenue Boost From Illinois, Texas Reimbursement Rate Hikes

Addus HomeCare Corporation (Nasdaq: ADUS) anticipates a boost in home care revenue following budget approvals in Illinois and Texas.

The State of Illinois has finalized its fiscal budget for 2026, which includes a 3.9% increase in the base hourly reimbursement rate, raising it to $30.80 per hour. This adjustment supports a minimum wage of $18.75 per hour for direct in-home care service workers. As a result, Addus expects to generate approximately $17.5 million in annual revenue from this increase.

Similarly, Texas has implemented a 9.9% increase in the base hourly reimbursement rate in its 2026 budget, raising the rate for in-home care providers to $17.13 per hour. Addus anticipates approximately $17.7 million in additional annual revenue from this change.

These rate increases will take effect on Jan. 1 and Sept. 1, respectively.

Addus HomeCare Chairman and CEO Dirk Allison stated that he was “extremely pleased” with the legislators’ commitment to home care.

“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,” he said in a statement. “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.”

Based in Frisco, Texas, Addus offers home care services, including personal care to support daily living activities, as well as hospice and home health services. The company currently serves approximately 62,000 consumers through 260 locations across 23 states.

Addus acquired Gentiva’s personal care assets in late 2024 for $350 million. Since the acquisition, the company has been seeking both clinical and non-clinical opportunities to expand the scope of its personal care offerings in Texas. 

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