7. Updated Change V4 Order Notice Pool~1.pdf

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Change Order Notice Chief Procurement Office for General Services Change Order Notice V.25.1 Page of Notice of renegotiated contracts and change orders that increase the cost of a contract by more than $25,000 or the time of completion by a total of 180 days or more shall be posted on the Bulletin/BidBuy for 14 days.

This Change Order Notice provides detail as to why the change order is needed and, pursuant to Section 33E-9 of the Criminal Code, that the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed or the change is germane to the original contract as signed. Change orders are defined by Section 1-15.12 of the Procurement Code and Section 1.2067 of the CPO-GS' Administrative Rules.

Detailed explanation for this change order:

11.0.0.20130303.1.892433.887364

Over the initial term, the program has expanded significantly. Client participation increased by 3.6% from FY24–25, and further growth is expected in CY27 as outreach efforts encourage clients to enroll in health insurance plans. Purchasing insurance coverage remains cost‑effective compared to direct medication reimbursement.

Insurance markets also changed in CY26, with Affordable Care Act (ACA) and commercial plans experiencing premium increases averaging approximately 40%. These market shifts have elevated monthly spending paid through Pool Administrators. As of July 2026, program reimbursement totals include $79,285,955.42 spent through June and $2,782,648.76 in pending July reimbursements, for a total of $82,068,604.18.

The current contract ceiling of $83,646,373.00 leaves $1,577,768.82 available. However, projected costs for August 2026 through February 2027 exceed the remaining balance. Based on updated program utilization and known increases in insurance premiums, the anticipated expenditures for the remainder of the Initial Term are expected to total approximately $21,353,627.00. This figure reflects current monthly spending patterns, upcoming enrollment cycles, and anticipated market conditions. IL ADAP is experiencing higher costs due to changes in federal policy affecting Advanced Premium Tax Credits (APTC) for individuals enrolled in Affordable Care Act (ACA) Marketplace plans. As a result, the program has seen an approximately 15% increase in monthly insurance premium costs, which was not anticipated in the original budget projections. Current monthly spending patterns show a sustained increase in premium obligations, and upcoming enrollment cycles are expected to further elevate costs. Additionally, IL ADAP has been notified that Marketplace plan premiums are projected to rise by an additional 20% during the current project year, consistent with anticipated nationwide impacts across ADAP programs.

Without this change order, the contract would exceed its ceiling well before the end of the Initial Term, resulting in interrupted payment processing, potential loss of insurance coverage for clients, adverse health consequences, and possible federal compliance issues. The additional funds are needed to maintain uninterrupted services that are fully germane to the original contract scope.

Contract Amounts

• Original Initial Term Contract Cost: $83,646,373.00

• Change Contract Cost: $21,353,627.00

• Total Contract Cost with Change Order: $105,000,000.00 All additional funds provided through this change order will be allocated exclusively to pass‑through funds for insurance premium payments and eligible client medical expenses.