Section 240.2030  Unallowable Costs for In-home Service

Certain costs shall not be considered by the Department in establishing a fixed rate of reimbursement for in-home service:

a)         expenses resulting from transactions with related parties/parent organizations that are greater than the going market cost of the transactions to the provider;

b)         non-straightline depreciation;

c)         bad debts;

d)         special benefits to owners, including owner and key-man life insurance;

e)         compensation to non-working owners and officers;

f)          discounts, rebates, allowances, and charity grants offered by the agency;

g)         entertainment expenses;

h)         fund-raising;

i)          legal fees for litigation with governmental agencies;

j)          awards, grants and gifts to individuals;

k)         fines and penalties;

l)          contingency funds;

m)        losses on other grants and contracts; and

n)         health coverage costs incurred for direct service workers by any qualifying provider for which an enhanced rate is paid for such purpose by the Department during a reporting period under Public Act 95-713 on or after July 1, 2008.

(Source:  Amended at 32 Ill. Reg. 19912, effective December 12, 2008)