Blog Post

Medicare Ends Home Health Provider Moratorium

Theodore M. McGinn • Feb 11, 2019

As of January 30, 2019, the moratorium on the enrollment of Illinois providers of home healthcare in Cook County officially ended. Accordingly, Medicare will be issuing new provider numbers now and into the future in the Chicagoland area. Such a development will now enable new owners and/or individuals to start a new home healthcare business and receive reimbursement through the Medicare program.

On July 30, 2012, Medicare provided for a moratorium that ceased any additional enrollments of home healthcare agencies in the Medicare program in the counties of Cook, DuPage, Kane, Lake, McHenry and Will in the Chicago area. In addition, there were also moratoriums in Broward and Monroe County in the state of Florida (the Miami area). The moratorium was designed to address the perceived imbalance in providers and patients in the impacted counties and was aimed at fighting fraud and protecting taxpayer money.

The lifting of the moratorium will have an impact on the Medicare home healthcare industry in the affected areas. During the moratorium, any party wishing to start a home healthcare business would have to acquire an existing agency. Such acquisitions presented many pitfalls including potential pre-closing liability issues that many buyers wish to avoid. With lifting the moratorium, individuals wishing to get into the business now have an alternative to acquiring an existing agency.

New individuals applying to become a provider will still have to comply with the regulatory and certification process (licensure with the state of Illinois and accreditation). That process creates delays which still may make the purchase of an existing agency attractive to individuals wishing to start a business sooner rather than later. In addition, the lifting of this moratorium does not impact the “36 month” rule, which restricts the transferability of a majority interest in a home healthcare agency within the issuance of its provider number.

Individuals who desire to start a home healthcare company that is a Medicare provider should consult with an attorney. There are many regulations that are applicable.

If you would like more information on this subject, please feel free to contact attorney Ted McGinn at Lavelle Law at 847-705-7555 or tmcginn@lavellelaw.com .

More News & Resources

Lavelle Law News and Events

Lavelle Law's Bankruptcy team saves client over $100k in student loan debt.

Success Story – Over $100k in Student Debt Discharged

By Bankruptcy Team • 14 May, 2024
The client’s unique facts allowed us to overcome the presumption that his $100k student loans could not be discharged.
At a minimum, parents with minor children should prepare wills with guardianship provisions.

Estate Planning: An Important Next Step for “New Moms” as well as for “Experienced Moms” with Young Children

By Jackie R. Luthringshausen • 12 May, 2024
Special congratulations to all “new moms” who recently celebrated the birth of their first child and to “experienced moms” who recently expanded their family with the birth of a new child! Whether you are a “brand new mom” or an “experienced mom,” now is the time to think about preparing estate plan documents to protect your new or growing family.
When a Taxpayer Should File an Amended Federal Tax Return

Tim’s Tax News on the Tenth – May 2024

By Timothy M. Hughes • 10 May, 2024
When a taxpayer realizes that their federal tax return has a math error, missing income, or other mistake, they should file an amended tax return. If you need to amend your Form 1040, 1040-SR, 1040-NR, or 1040-SS/PR for the current or two prior tax periods, you can amend these forms electronically using available tax software products. Any amended Form 1040, 1040-SR, 1040-NR or 1040-SS/PR returns older than the current or prior two tax periods cannot be amended electronically. Amended returns for those earlier tax years must be filed by paper. Also, if the originally filed return was via paper during the current processing year, then the amended return must also be filed on paper.
Understanding the FTC’s Nationwide Ban on Noncompete Agreements

Banking and Business Monthly – May 2024

By Steven A. Migala • 03 May, 2024
On April 23, 2024, the Federal Trade Commission (“FTC”), in a 3-2 vote, issued its final Non-Compete Clause Rule (“Rule”) which prohibits noncompete clauses in agreements between employees and their workers. This highly anticipated Rule follows a substantially similar proposed rule from the FTC released on January 19, 2023. The Rule will not become effective until 120 days after publication in the Federal Register, and covered employers will be required to comply with the Rule by that effective date, which could come as early as August of this year. By the FTC’s estimate, this ban could affect up to one in five American workers.
Divorces that involve small and medium businesses have unique concerns and considerations.

Business Ownership and Divorce

By Joseph A. Olszowka • 02 May, 2024
When determining how to distribute the marital assets between parties to a divorce, the division of an interest in a small or medium business owned by one or both of the parties is more complex and requires a careful examination of the value of the business or business interests. The Court must determine the value of the business interest in order to determine how to equitably divide all marital assets in which the parties have an interest. The Court will regularly rely on the valuation reports of the parties' experts regarding the value of the business. The business valuation expert will utilize a number of different methods in determining the value of a business. The professional appraiser will examine and assess the value of the business and provide expert testimony and reports to the parties and the Court.
Vehicle dealerships need to navigate the complex terrain of adhering to BIPA to avoid lawsuits.

BIPA Compliance: A Guide for Vehicle Dealerships to Mitigate Litigation Risks

By Sarah J. Reusché and Nathan Toy • 30 Apr, 2024
Vehicle dealerships particularly have recently found themselves needing to navigate the complex terrain of adhering to the BIPA’s stringent requirements to avoid being targeted through lawsuits. There has been a recent noticeable uptick in class action lawsuits under the BIPA, serving as a critical wake-up call for the automotive retail industry, highlighting the need for dealerships to review and enhance their practices if they are using biometric technology.
Learn the complexities of Illinois commercial leases and avoid common pitfalls.

The Not So Simple Truth About Entering Into a Commercial Lease Agreement

By Lavelle Law • 29 Apr, 2024
Join us for this seminar as Lavelle Law attorneys Kelly Anderson and Chance Badertscher will unpack the complexities of Illinois commercial leases in order to prepare you for strong leasing relationships.
An essential part of a good contract is often overlooked. Learn about fee shifting provisions.

Fee Shifting Provisions in Contracts & Statutes

By Joseph O. Upchurch and MaryAllison Mahacek • 23 Apr, 2024
Between the state of Illinois and federal courts, there are well over 200 statutes that deal with fee shifting provisions. They lay out ways in which legal fees may become the responsibility of one party in a lawsuit. In this video, Lavelle Law Associates Jodie Upchurch and MaryAllison Mahacek discuss ways that these provisions should be included in contracts and how they can be used advantageously.
Great advice on what to expect on your final walkthrough.

What to Look for During a Final Walkthrough: A Straight Up Chicago Investor Podcast

By Chance W. Badertscher • 22 Apr, 2024
Lavelle Law real estate attorney, Chance Badertscher, recently participated in a Straight Up Chicago Investor Podcast and shared his expertise on what to expect on the final walkthrough before your real estate closing. He breaks it down and shares tips for both the buyer and the seller.
An essential part of a good contract is often overlooked. Learn about fee shifting provisions.

Fee Shifting Provisions in Contracts

By Joseph O. Upchurch and MaryAllison Mahacek • 18 Apr, 2024
Between the state of Illinois and federal courts, there are well over 200 statutes which deal with fee shifting provisions. They lay out ways in which legal fees may become the responsibility of one party in a lawsuit. Lavelle Law Associates Jodie Upchurch and MaryAllison Mahacek discuss ways that these provisions should be included in contracts and how they can be used advantageously.
More Posts
Share by: