On May 5, 2010, CMS announced it is rescinding a controversial transmittal issued on December 18, 2009 (Transmittal 318) that would have revised the Medicare Program Integrity Manual to implement the so-called home health agency (HHA) 36-month rule established in 42 C.F.R. § 424.550(b). This rule, adopted as part of the HHA PPS rule for 2010, states that if the owner of an HHA sells (including asset sales or stock transfers), transfers, or relinquishes ownership of the HHA within 36 months after the effective date of the HHA’s enrollment in Medicare, the provider agreement and Medicare billing privileges do not convey to the new owner. Transmittal 318 adopted an expansive interpretation of the circumstances under which a HHA would be required to seek initial certification and enrollment in Medicare. In its notice rescinding Transmittal 318, CMS indicated that Transmittal 318 would not be replaced at this time.