# NEMT in Chicago: The City Medicar License and Driver Rules (2027)

Canonical URL: https://nemtguide.com/states/illinois/chicago/ · Updated 2026-10-02

To run NEMT in Chicago, license each medical van as a medicar with the city's Department of Business Affairs and Consumer Protection (BACP), on state MC or PT plates, for $600 a year as of July 2026. Pay the city's ground transportation tax on each van, give every driver a city chauffeur license or a CDL, and join Modivcare or MTM Health for Cook County plan rides.

- Chicago licenses each medicar for a July 1 to June 30 term, at $600 per vehicle for 2026 to 2027, and the license covers non-medical rides for disabled riders too.
- Register for the city's ground transportation tax before your first ride, and ask Finance whether your medicars owe $3.50 a day or $98 a month.
- BACP accepts only a real Chicago place of business, never a P.O. box or virtual mailbox, and a false address can cost up to $10,000 a day.
- Medicar drivers need a city public chauffeur license, which takes a BACP-approved course, fingerprints, and a $40 fee, or a CDL.
- From October 1, 2026, MTM Health books rides for Cook County plans with about 56 percent of members, and Modivcare for the rest.

## Chicago NEMT at a glance

| Fact | Details |
| --- | --- |
| City license | Medicar vehicle license from BACP Public Vehicle Operations, 2350 W. Ogden Ave., first floor, 312-746-4200, under Municipal Code Chapter 9-114 |
| Fee and term | $600 per vehicle for each July 1 to June 30 term, starting with 2026 to 2027. It was $500 before. |
| City insurance | $350,000 combined single limit per occurrence up to 9 seats, $1,000,000 for 10 or more, with the City of Chicago as additional insured |
| Ground transportation tax | BACP lists $3.50 a day for a medicar with 10 or fewer seats, while posted Code 3-46-030 sets $98 a month, so ask Finance. Vans with 11 to 24 seats pay $6 a day, plus a yearly return (form 7595). |
| Drivers | A City of Chicago public chauffeur license ($40 for a two-year term) or a valid, permanent CDL |
| New applicants | Book an intake appointment first. Owners are fingerprinted after the application, and BACP allows at least 14 business days to process it. |
| Place of business | A Chicago address where the city sends notices and you keep your records. No P.O. box or virtual mailbox. |
| Licensed medicars | 62 active medicar licenses held by 18 companies, one of them with 40, in the city's open data in October 2026 |
| Cook County brokers | From October 1, 2026, Modivcare for CountyCare and Aetna, and MTM Health for Blue Cross, Meridian, Molina, and YouthCare |

## Who arranges rides here

- [BACP Public Vehicle Operations Division](https://www.chicago.gov/city/en/depts/bacp/supp_info/livery_owners_information.html): Licenses medicar vehicles and public chauffeurs. (312) 746-4200
- [Chicago Department of Finance](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/ground_transportationtax.html): Collects the ground transportation tax and clears city debt holds. (312) 747-4747
- [Modivcare transportation providers](https://www.modivcare.com/transportation-providers-contact-us/): Adds companies for CountyCare and Aetna Better Health rides.
- [MTM Health provider network](https://www.mtm-inc.net/driverswanted/): Adds companies for Blue Cross, Meridian, Molina, and YouthCare rides.

Chicago licenses NEMT vans itself. Its Department of Business Affairs and Consumer Protection (BACP) issues a medicar vehicle license for each van under Chapter 9-114 of the Municipal Code, the city taxes each licensed van for every day it works, and drivers need a city public chauffeur license or a CDL. All of that sits on top of Illinois's medical carrier plates and Medicaid enrollment, which the [Illinois guide](https://nemtguide.com/states/illinois/) covers.

## Who sends Medicaid trips in Chicago

Illinois pays for most Medicaid rides through HealthChoice Illinois health plans, each of which books rides through one broker, and Transdev approves each trip for members outside a plan. The [Illinois guide](https://nemtguide.com/states/illinois/) explains both. Nearly all of Chicago lies in Cook County, with a small part in DuPage, and HFS's October 2026 subcontractor list and August 2026 enrollment report show who holds the Cook County riders:

| Plan | Cook County members, August 2026 | Ride broker from October 1, 2026 |
|---|---|---|
| CountyCare | 376,740 | Modivcare |
| Blue Cross Community Health Plans | 304,676 | MTM Health |
| Meridian | 210,104 | MTM Health |
| Aetna Better Health of Illinois | 92,752 | Modivcare |
| Molina Healthcare | 70,032 | MTM Health |
| YouthCare | 8,291 | MTM Health |

Blue Cross moved its Medicaid rides from Modivcare to MTM Health on October 1, 2026, and its notice says MTM also runs the recurring trips members had already booked. On August 2026 enrollment, MTM's plans now hold about 56 percent of Cook's 1,062,595 plan members. CountyCare, Cook County Health's plan, serves Cook County only. See [Modivcare in Illinois](https://nemtguide.com/brokers/modivcare/illinois/), [MTM Health in Illinois](https://nemtguide.com/brokers/mtm-health/illinois/), and [CountyCare](https://nemtguide.com/health-plans/countycare-illinois/) for how each one adds companies.

For fee-for-service trips in Cook and DuPage, the HFS schedule effective January 1, 2026 pays a medicar $30 a trip plus $1.03 a loaded mile, while brokers set their own rates in each contract.

## What the Chicago medicar license covers

Section 9-114-010 defines a medical carrier as a public passenger vehicle specifically designed, built, or modified and equipped for the nonemergency transportation of people for pay to obtain medical services, or of people with disabilities for any purpose. BACP's page gives the example of driving an older adult from home to a senior center. So a private pay or senior center run in your van needs the license as much as a Medicaid trip does.

Chapter 9-114 adds the vehicle rules:

- **State plates first.** Under 9-114-340, vehicles of any size qualify once Illinois licenses them as medical carriers, on MC or PT plates.
- **Doors and safety standards.** A medicar has two doors on each side and meets the federal motor vehicle safety standards for its size, type, and use.
- **Clean title.** Under 9-114-150, a vehicle ever titled salvage, rebuilt, junk, or total loss can never be a Chicago public passenger vehicle.

Sedans are different. BACP licenses vehicles that charge a prearranged, pre-negotiated fare as liveries, driven by restricted livery chauffeurs. Under 9-114-070 a livery license costs $1,200 for a two-year term from December 16 to December 15, and from July 1, 2026 city livery plates pay a flat $98 a month in ground transportation tax. Ask BACP which license each vehicle needs before it carries paying riders in the city. See [livery vehicle](https://nemtguide.com/glossary/livery-vehicle/).

## What it costs to license a medicar

Section 9-114-070, last amended in December 2025, sets the medicar fee at $600 per vehicle, up from $500 the year before. BACP's April 14, 2026 renewal notice charged that amount for the July 1, 2026 to June 30, 2027 term:

| Cost | Amount | When |
|---|---|---|
| Medicar vehicle license | $600 per vehicle | Each July 1 to June 30 term, after approval |
| Ground transportation tax, up to 10 seats | $3.50 a day on BACP's page, $98 a month in the posted code | While the vehicle works in the city |
| Ground transportation tax, 11 to 24 seats | $6 per vehicle a day | Each day the vehicle works in the city |
| Public chauffeur license | $40 per driver | Each two-year term |

BACP's checklist for new applicants, dated September 16, 2025, still shows the old $500 fee. A license not renewed and paid before it expires lapses, and a van running on a lapsed license counts as unlicensed. You can still renew for up to a year after it lapses by paying the full fee plus a late fee.

## Insurance for a Chicago medicar

Section 9-114-170 sets the city's minimums for each licensed vehicle:

- **Up to 9 seats.** $350,000 combined single limit per occurrence in commercial auto liability.
- **10 seats or more.** $1,000,000 combined single limit per occurrence.
- **Workers' compensation.** As Illinois law requires. BACP suspends a license at once without it.
- **The insurer.** A company authorized to insure in Illinois.
- **Additional insured.** The City of Chicago, on a primary, noncontributory basis. BACP's renewal notice asks every certificate to list "City of Chicago/BACP, 2350 W. Ogden Ave., First Floor, Chicago, IL 60608" as additional insured and certificate holder.

A lapse brings an immediate suspension until BACP has proof of coverage, and the code allows a $300 fine for each day without it. See [additional insured](https://nemtguide.com/glossary/additional-insured/), and compare these limits with what your brokers ask in [NEMT insurance requirements](https://nemtguide.com/guides/nemt-insurance-requirements/).

## How to apply for a new medicar license

1. **Get state plates first.** Register each van with MC or PT plates and pass the IDOT safety test, as the [Illinois guide](https://nemtguide.com/states/illinois/) explains.
2. **Set up your Chicago place of business.** A company must be organized or qualified to do business in Illinois. A license in a person's name requires that person to live in Chicago.
3. **Clear city debt.** Under 9-114-040, no one who owes the city money can hold a license, and you must register with the Department of Finance for the ground transportation tax.
4. **Book an intake appointment.** BACP requires new medicar applicants to schedule one before applying, through Chicago.gov/PublicVehicles. Walk-in new applicants without an appointment are turned away.
5. **Bring the papers.** BACP's checklist of September 16, 2025 asks for:
   - the completed application and a copy of your driver's license
   - the title, certificate of origin, or current registration, and the bill of sale
   - a vehicle history report and an IDOT inspection form for any van older than the current model year
   - the lease, if you lease the van
   - proof of your Chicago place of business, such as a lease or property tax bill
   - a certificate of insurance
   - for a company, a Secretary of State file detail report showing "Active", your articles, and the minutes or operating agreement naming every owner
6. **Get fingerprinted after you apply.** BACP gives you its fingerprint form, and results go to its ORI number ILL14898S. Send the TCN receipt within 7 business days, and allow at least 10 business days for results.
7. **Pick up the license** once BACP emails you, with your driver's license and the fee. BACP allows at least 14 business days for processing.

You can also send the application and every document in a single email to BACPPV@cityofchicago.org. BACP takes an officer photo at 2350 W. Ogden for its records.

### Who cannot hold a medicar license

Section 9-114-040 bars an applicant, or any officer, director, or partner, who in the last three years had a Chicago public vehicle or chauffeur license revoked, or a felony conviction, custody, or parole. A license denied or rescinded in the last 12 months also bars you. Minor cannabis offenses do not count.

### The place of business rule

BACP's notice of November 15, 2024 requires every public vehicle licensee to keep a place of business in Chicago: a location where the city can send notices, and where you keep the business and financial records for the license. A virtual mailbox, a UPS or P.O. box, or a virtual office without your own permanent space does not qualify. If you list your insurance company's address, it stops counting once you change insurers or the policy lapses. A false or invalid address can cost the license and bring a fine of up to $10,000 for each day it was on file.

## Chicago's ground transportation tax

Chapter 3-46 of the Municipal Code taxes every vehicle that carries riders for pay in the city, by its seats. Section 3-46-030 charges $6 for each day a vehicle with 11 to 24 seats works in the city.

For a medicar with 10 or fewer seats, the city publishes two different rates. BACP's medicar page lists $3.50 for each day it gives rides in the city. The posted text of 3-46-030, amended December 19, 2025, sets a flat $98 a month for every Chapter 9-114 vehicle that size, and medicars are licensed under Chapter 9-114. The Department of Finance's notice moves only city livery plates to the monthly rate from July 1, 2026. Ask Finance which rate your medicars owe before your first payment, and keep the answer in writing.

BACP's toolkit of August 30, 2023 has yearly payers pay by July 15. Quarterly payers pay by October 15, January 15, April 15, and July 15, each for the quarter just ended.

You also file an annual return, form 7595, for each July to June fiscal year, reporting the days each vehicle was in service, even if you paid during the year. Returns and payments go through Chicago Business Direct, and the Department of Finance answers at 312-747-4747 or RevenueDatabase@cityofchicago.org. BACP will not renew a license while the account has a debt hold.

## Chauffeur licenses for medicar drivers

Section 9-104-020 of the Municipal Code requires a City of Chicago chauffeur license for anyone driving a public passenger vehicle licensed under Chapter 9-114. A driver with a valid, permanent CDL may drive a medicar instead, as long as the CDL's restrictions allow it. A public chauffeur license runs two years and costs $40. BACP's checklist of January 6, 2025 sets the steps:

1. **Qualify.** Be at least 21, with a driver's license in good standing that a US state issued at least a year before you apply.
2. **Take the course.** Pass a BACP-approved public chauffeur course and exam within six months before you apply. BACP posts its approved course list on its chauffeur page.
3. **Collect papers.** A certified court purposes and supervision driving abstract dated within 60 days, and a Department of Finance debt clearance dated within 120 days. BACP rejects third-party and public abstracts.
4. **Apply** in person at 2350 W. Ogden, checking in before 11:30 a.m., or in one email with every document attached.
5. **Get fingerprinted** only after you apply and BACP fills in your form. Send the receipt within 7 business days.
6. **Pick up the license** and pay the $40 fee.

BACP closes an incomplete application after 30 days. A driver of a vehicle with 16 or more seats, the driver included, needs a CDL with a passenger endorsement. HFS's own driver rules still apply to Medicaid trips. See [NEMT driver requirements](https://nemtguide.com/guides/nemt-driver-requirements/).

## Renewing a medicar license each spring

Every medicar license expires June 30. For the July 1, 2026 to June 30, 2027 term, BACP took renewal papers from May 19, 2026, by email (its preferred method, with your license holder name and IRIS number) or in person with check-in before 2 p.m., and asked for them before June 15, 2026. The packet held:

- BACP's ownership information verification form, which must match what BACP has on file
- for a company, a certificate of good standing from the Secretary of State dated after April 1, 2026
- a passing IDOT inspection form for each van, dated after January 1, 2026
- a certificate of insurance meeting the limits above
- the $600 fee per vehicle once approved, by credit card, certified check, or money order payable to the City of Chicago, with no personal checks

Only the licensee, a registered corporate officer or LLC member, or an Illinois attorney the licensee authorizes may renew. A change of officers or shareholders needs BACP's approved change of officers application and its fee. Each renewed van gets a 2026 license hard card for the passenger side of the dashboard, and failing to display it violates the code. Watch BACP's notices each spring for the next year's dates.

## How many medicars Chicago licenses

The city's open data portal lists every medicar license. On October 2, 2026 it showed 62 active licenses held by 18 companies, and one company held 40 of them. Another 56 licenses were in violation status. Look up your own licenses there before each renewal. BACP's 2023 toolkit says an expired license may not operate for hire, and a vehicle running on a license in expired or violation status can face citations, impoundment, or revocation.

## What to do first

1. **Call the brokers.** Ask Modivcare and MTM Health whether they need vans in Chicago, and which Cook County plans each contract covers.
2. **Start IMPACT enrollment** with HFS, which every Medicaid transportation company needs.
3. **Secure a Chicago place of business** that meets BACP's 2024 notice.
4. **Plate and inspect your vans** with MC or PT plates and the IDOT safety test.
5. **Book a BACP intake appointment** at Chicago.gov/PublicVehicles, or email BACPPV@cityofchicago.org with questions.
6. **Enroll your drivers** in a BACP-approved chauffeur course.
7. **Register in Chicago Business Direct** so you can pay the ground transportation tax from your first day of service, and ask Finance at 312-747-4747 whether your medicars pay by the day or by the month.

## Frequently asked questions

### Do I need a city license to run NEMT in Chicago?

Yes, for each medical van. Chapter 9-114 defines a medical carrier as a vehicle designed or modified and equipped to carry people for pay to medical services, or people with disabilities for any purpose, and BACP licenses each one as a medicar. The van first needs Illinois MC or PT plates. A regular sedan that carries prearranged paying riders is licensed as a livery instead, so ask BACP which license each vehicle needs.

### How much does a Chicago medicar license cost?

Section 9-114-070 sets $600 per vehicle for a one-year term from July 1 to June 30, the amount BACP charged for the July 2026 to June 2027 term. It was $500 the year before. You pay after BACP approves the application. On top of that, each van owes the city's ground transportation tax, which BACP lists at $3.50 a day for a medicar with 10 or fewer seats.

### Do Chicago NEMT drivers need a chauffeur license?

Yes, unless they hold a valid, permanent CDL. Section 9-104-020 requires a city chauffeur license for anyone driving a public passenger vehicle licensed under Chapter 9-114, and lets a CDL holder drive a medicar if the CDL's restrictions allow it. BACP's January 6, 2025 checklist requires applicants to be 21, licensed for a year, trained in an approved course, and fingerprinted. The license costs $40 for two years.

### Who books Medicaid rides in Chicago?

The health plan's broker. From October 1, 2026, Modivcare books rides for CountyCare and Aetna Better Health of Illinois, and MTM Health books rides for Blue Cross Community Health Plans, Meridian, Molina, and YouthCare. For members outside a plan, Transdev approves each trip and the member books with an enrolled company. Every company also enrolls with HFS in IMPACT.

### How do I pay Chicago's ground transportation tax for a medicar?

Register with the Department of Finance, which the code makes a condition of the license, then pay in Chicago Business Direct. BACP lists $3.50 for each day a medicar with 10 or fewer seats gives rides in the city, but posted Code 3-46-030 sets $98 a month for those vans, so ask Finance at 312-747-4747 which you owe. BACP's toolkit lists July 15 for yearly payers and October 15, January 15, April 15, and July 15 for quarterly payers, and every owner files an annual return, form 7595, for the July to June year.

### Can I use a home address or P.O. box for a Chicago medicar license?

Not a P.O. box, UPS box, or virtual mailbox. BACP's notice of November 15, 2024 requires a place of business in Chicago where the city can send notices and where you keep the business and financial records for the license. A license in an individual's name requires that person to live in Chicago. A false address can bring revocation and fines of up to $10,000 a day.

## Official resources

- [City of Chicago BACP: Medicar and other public vehicle license information](https://www.chicago.gov/city/en/depts/bacp/supp_info/livery_owners_information.html)
- [City of Chicago BACP: Book a public vehicles intake appointment](https://www.chicago.gov/city/en/depts/bacp/provdrs/vehic.html)
- [City of Chicago BACP: New public vehicle license applicant checklist](https://www.chicago.gov/content/dam/city/depts/bacp/publicvehicleinfo/liveryowners/newapplicantforpublicvehiclechecklist20250916.pdf)
- [City of Chicago BACP: Public chauffeur licenses and approved training courses](https://www.chicago.gov/city/en/depts/bacp/provdrs/vehic/svcs/publicchauffeur.html)
- [City of Chicago BACP: Place of business address requirement](https://www.chicago.gov/content/dam/city/depts/bacp/publicvehicleinfo/liveryowners/placeofbusinessaddressinchicagorequirement11152024.pdf)
- [City of Chicago Department of Finance: Ground transportation tax](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/ground_transportationtax.html)
- [City of Chicago Data Portal: Medicar license status lookup](https://data.cityofchicago.org/Community-Economic-Development/Public-Passenger-Vehicle-Licenses-Medicars-Only/rbcw-eizr)
- [Illinois HFS: HealthChoice Illinois plan ride vendors](https://hfs.illinois.gov/content/dam/soi/en/web/hfs/medicalclients/managedcare/healthchoiceilmcosclist.pdf)