How to start a home care agency in Illinois

Illinois requires a Home Services Agency license (Home Services Placement Agency is a separate license) from Illinois Department of Public Health (IDPH), Office of Health Care Regulation, Health Care Facilities and Programs to operate a home care agency. Fee: $1,500. Processing time: IDPH issues a provisional license to a new agency within 90 days of a complete application. The provisional license lasts 240 days; IDPH inspects within 30 days before it ends and then issues a 1-year license.

License required

Yes

License

Home Services Agency license (Home Services Placement Agency is a separate license)

Issuing agency

Illinois Department of Public Health (IDPH), Office of Health Care Regulation, Health Care Facilities and Programs

Fee

$1,500

Fee details

$1,500 non-refundable annual license fee for a home services agency, per the 09/2024 IDPH application (the rule caps it at $1,500; a home services placement agency is capped at $500). Paid by check or money order to IDPH; electronic payment not accepted. Certified local health departments are exempt.

Renewal

Every year · Annual renewal with the same fee. IDPH sends a reminder about 120 days ahead; the complete application and fee must be postmarked at least 60 days before expiration or a late fee applies.

Processing time

IDPH issues a provisional license to a new agency within 90 days of a complete application. The provisional license lasts 240 days; IDPH inspects within 30 days before it ends and then issues a 1-year license.

Insurance and bonds

Liability insurance of at least $1 million per occurrence and $3 million aggregate, documented with a certificate of insurance at application.

Survey and inspection

IDPH inspects within the last 30 days of the 240-day provisional license before granting the full license.

Regulation

Home Health, Home Services, and Home Nursing Agency Licensing Act (210 ILCS 55); 77 Ill. Adm. Code 245 (amended 49 Ill. Reg. 11469, eff. 2025-09-02)

1. Register with the IDPH Web Portal and get access to the Health Care Worker Registry
2. Get liability insurance of at least $1 million per occurrence / $3 million aggregate
3. Prepare required policies: complaints, employee health and safety, infection control, background checks and mandated reporting, supervisory visits, client records, worker training
4. Mail the initial application with attachments, insurance certificate and fee to IDPH Health Care Facilities and Programs, 525 W Jefferson St, Springfield
5. Receive a 240-day provisional license and begin operating
6. Pass the IDPH inspection before the provisional license ends to get the full 1-year license
7. Renew yearly at least 60 days before expiration

Staffing

• Administrator or agency manager responsible for compliance, records, staffing, orientation and an office open during business hours; a written alternate
• Home services supervisors/trainers with at least 2 years of hands-on experience in home health, home services, facility or home nursing work within the last 5 years, or a current supervisor/trainer role plus training in the past year
• Every worker must clear the Health Care Worker Background Check Act check (or hold a waiver)

Training

• At least 10 hours of training for each home services worker: 5 hours before the first assignment and 5 more within the first 30 days, with a competency evaluation after each block
• At least 10 hours of training every year after that (self-study allowed with demonstrated learning)
• Prior training at another licensed home services agency within the last year, or CNA registry status, can be accepted with a competency evaluation
• Placement agencies must require at least 8 hours of training before a worker's first assignment

Program

Illinois Medical Assistance Program (Department of Healthcare and Family Services)

Enrollment portal

IMPACT (Illinois Medicaid Program Advanced Cloud Technology) provider enrollment system

Fiscal agent

None named — HFS runs provider enrollment itself through IMPACT Provider Enrollment Services

Application fee

Federal rule (42 CFR 455.460): the state must collect the CMS application fee from institutional providers that are newly enrolling or re-enrolling; individual physicians and non-physician practitioners are exempt, as are providers already enrolled in (or that already paid the fee to) Medicare or another state's Medicaid/CHIP. CMS set the fee at $750 for calendar year 2026.

Fingerprinting

IMPACT uses CMS's risk levels and sets its own for provider types CMS does not classify; high-risk providers must submit fingerprints and pass criminal background checks before enrollment. DMEPOS suppliers are high risk and must be licensed (or exempt) and accredited by a recognized body. Federal rule (42 CFR 455.434, 455.450(c)): providers the state places in the 'high' categorical risk level, and anyone owning 5% or more of such a provider, must submit fingerprints for a criminal background check.

Site visit

IMPACT does onsite visits before and after enrollment for moderate- and high-risk providers, including at revalidation. Federal rule (42 CFR 455.432, 455.450(b)-(c)): the state must do site visits before and after enrollment for providers in the 'moderate' or 'high' risk levels, and any enrolled provider must allow unannounced on-site inspections.

Revalidation

HFS restarted revalidation in IMPACT in rolling stages from September 3, 2024; providers revalidate through the 'Provider Revalidation List' in IMPACT and may be asked for more documents. Federal rule (42 CFR 455.414): every enrolled provider must be revalidated at least once every 5 years.

Full Illinois Medicaid enrollment guide →

CON program

Yes

Program

Certificate of Need permit (Illinois Health Facilities Planning Act)

Agency

Illinois Health Facilities and Services Review Board (HFSRB), staffed by the Illinois Department of Public Health

Services covered

• hospitals
• ambulatory surgical treatment centers
• skilled and intermediate long-term care facilities (nursing homes)
• ID/DD and MC/DD skilled and intermediate care facilities
• Specialized Mental Health Rehabilitation Act facilities
• kidney disease treatment centers / freestanding hemodialysis
• state-operated hospitals, nursing homes, surgery and dialysis centers

Illinois certificate of need details →

Model

hybrid

State vendor

HHAeXchange

Services in scope

• personal care
• home health

Alternate EVV allowed

Yes

Program

https://hfs.illinois.gov/medicalproviders/electronicvisitverification/ievvfrequentlyaskedquestions.html

Illinois EVV requirements →

State minimum wage

$15.00 an hour

Effective

2025-01-01

Scheduled increases

No scheduled change found in the official sources reviewed.

Direct-care wage floor

Department on Aging homemaker rates were raised to $30.80/hour from 2026-01-01 to sustain a minimum wage of $18.75/hour for direct service workers (after $17 in 2024 and $18 in 2025).

Rate pass-through

In-home service providers must certify they pay the mandated wage increase, and may not cut fringe benefits (paid time off, training pay, health insurance, travel) in response to the rate increases.

HCBS 80/20 rule

Federal baseline: 42 CFR 441.302(k) requires the state to show that each provider spends at least 80% of Medicaid payments for homemaker, home health aide and personal care services under 1915(c) waivers on direct care worker pay and benefits. Compliance starts 2030-07-09 (for managed care, the first rating period starting on or after that date); annual payment-adequacy reporting under 441.311(e) starts 2028-07-09. A state may set a lower share for state-defined small providers and exempt providers facing hardship, each only through a public notice-and-comment process. The eCFR text has not changed since 2024-07-09. No state-published 80/20 implementation step (small-provider criteria, hardship exemption or reporting guidance) was found for this state in the official sources reviewed.

Personal care / in-home supportive care organizations — active organization NPIs (NPPES)

1,468 (as of Sep 13, 2026)

Total Medicaid and CHIP enrollment (latest reported month)

2,932,625 (as of Jun 1, 2026)

All Illinois Home care Medicaid rates, ranked →

• Adults with Developmental Disabilities Waiver (1915(c))
• Persons with Brain Injury Waiver (1915(c))
• Residential Waiver for Children and Young Adults with Developmental Disabilities (1915(c))
• Support Waiver for Children and Young Adults with Developmental Disabilities (1915(c))
• Persons who are Elderly Waiver (1915(c))
• Persons with HIV or AIDS (1915(c))
• Medically Fragile, Technology Dependent Waiver (1915(c))
• Persons with Disabilities Waiver (1915(c))
• Supportive Living Program Waiver (1915(c))

Illinois waivers and waiting lists →