2018 DWRS regional variance factors

This page is provided for reference purposes only. For the regional variance factors taking effect July 1, 2022, see the 2022 DWRS regional variance factors webpage.

Background
Implementation
Regions
2018 Regional Variance Factors

Background

The Legislature requires DHS to update the existing regional variance factors in the Disability Waiver Rate System (frameworks to account for regional cost differences) every six years, starting in 2022 (Minn. Stat. §256B.4914, subd.10d). DHS will begin using these updated factors on July 1, 2022.

In order to update the RVFs, DHS conducted a study duplicating the methodology used in the 2015 RVF study by Truven Analytics (see 2015 Regional Variance Factor Report [PDF]) and the second study in 2017. DHS calculates the RVFs based on independent wage data from the Bureau of Labor Statistics. The DWRS Advisory Committee helped DHS decide how to conduct the updated RVF analysis.
Implementation

DHS will begin to use the updated regional variance factors (RVFs) on a rolling basis as service agreements renew beginning Jan. 1, 2018. The 2018 RVF values and regions are listed under the Updated Regional Variance Factors and Regions tabs of this page.

During this implementation, lead agencies do not have to change their process for Rate Management System or MnCHOICES Support Plan input. DHS will apply these factors to the framework rate only. Because of banding, most recipient rates will not change significantly. Full impact of this change will occur when banding ends.

Regions

The Rate Management System and MnCHOICES Support Plan will apply regional variance factors according to the recipient’s county of residence. The regions are metropolitan statistical areas (MSAs) defined by the U.S. Office of Management and Budget. The table below lists the lead agencies included within each region. The map shows where these regions are located in the state.

The MSAs are shaped by census data and may change with each census.

Regions as defined by metropolitan statistical areas

Region	Lead agencies
Duluth MN Area	Carlton and St. Louis counties, and Fond du Lac Band of Lake Superior Chippewa
Fargo ND Area	Clay County
Grand Forks ND Area	Polk County
La Crosse WI Area	Houston County
Mankato MN Area	Blue Earth and Nicollet counties
Metro MN Area	Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Sibley, Washington and Wright Counties and Mille Lacs Band of Ojibwe
Northeast MN	Aitkin, Cook, Itasca, Kanabec, Koochiching, Lake and Pine counties, and Bois Forte Band of Chippewa and Grand Portage Band of Lake Superior Chippewa
Northwest MN	Becker, Beltrami, Cass, Clearwater, Crow Wing, Douglas, Grant, Hubbard, Kittson, Lake of the Woods, Mahnomen, Marshall, Morrison, Norman, Otter Tail, Pennington, Pope, Red Lake, Roseau, Stevens, Todd, Traverse, Wadena and Wilkin counties; Leech Lake Band of Ojibwe, Red Lake Nation, Shakopee Mdewakanton Sioux Community and White Earth Nation
Rochester MN Area	Dodge, Fillmore, Olmsted and Wabasha counties
Southeast MN	Brown, Faribault, Freeborn, Goodhue, Martin, Mower, Rice, Steele, Waseca, Watonwan and Winona counties and Prairie Island Indian Community
Southwest MN	Big Stone, Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Swift and Yellow Medicine counties; Lower Sioux Indian Community and Upper Sioux Community
St. Cloud MN Area	Benton and Stearns counties

Region	Residential	Day	Unit With Program	Unit Without Program
Duluth MN Area	0.965	0.950	0.941	0.943
Fargo ND Area	1.025	0.991	1.018	1.013
Grand Forks ND Area	1.012	0.991	0.962	1.014
La Crosse WI Area	0.995	1.034	1.023	0.940
Mankato MN Area	1.023	1.043	1.058	0.974
Metro MN Area	1.023	1.013	1.022	1.013
Northeast MN	0.972	0.973	0.949	0.926
Northwest MN	0.979	1.007	0.993	0.914
Rochester MN Area	1.018	1.047	1.020	0.983
Southeast MN	0.957	0.950	0.953	0.915
Southwest MN	0.983	0.979	0.954	0.926
St. Cloud MN Area	0.954	0.946	0.922	0.948