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2021 legislative changes that affect the direct care workforce shortage

Key provisions passed during the 2021 Minnesota legislative and special legislative sessions might assist with recruitment and retention of direct support professionals or reduce reliance on staff to provide supports.

Minnesota Health Care Programs (MHCP) will issue additional updates or other more detailed information for service providers as needed to clarify policy changes or the process for rate increases. Changes are in the Minnesota Session Laws 2021, First Special Session, Chapter 7.

Home and community-based services

Customized living disproportionate share rate adjustment

This change establishes a rate floor for elderly waiver customized living services provided in assisted living facilities with at least 80% of residents who receive the Elderly Waiver. (Effective Oct. 1, 2021, or upon federal approval and applies to services provided on or after July 1, 2022, or on or after the date upon which federal approval is obtained; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Sections 61 and 62)

Elderly Waiver, Alternative Care, Essential Community Supports rate increases

This provides rate increases for a number of services provided under Elderly Waiver (EW), Alternative Care (AC) and Essential Community Supports by adjusting the rate methods phase-in for EW rates. (Effective Jan. 1, 2022, or upon federal approval; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Sections 63 and 64)

Disability Waiver Rate System (DWRS) base wage index and standard component values

This modifies the DWRS inflationary adjustment timeline so providers will see an increase six months sooner in 2021. Directs 80% of the marginal increase in revenue from the rate adjustment to be used to increase compensation-related costs (such as wages, benefits, reimbursements, etc.) for employees directly employed by the program on or after Jan. 1, 2022. Directs employers to post the distribution plan for a period of at least six months in an area to which all direct support professionals have access. See Provider requirements for inflationary adjustment distribution reports for more information.

See also the Service rate and budget changes effective Oct. 1 for more specific rate information on home and community-based services.

Home care services

Payment rates for home health agency services

This provides an annual inflation adjustment to the Medical Assistance service rates for home health agency services. (Effective Jan. 1, 2022; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Section 11)

Payment rates for home care nursing services

This gives an annual inflation adjustment to the Medical Assistance service rates for home care nursing services. (Effective Jan. 1, 2022; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Section 12)

Payment rates for home care services

This change allows a 5% rate increase for home health services and home care nursing services. (Effective Jan. 1, 2022; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Section 74)

Intermediate care facilities for people with developmental disabilities (ICF/DD)

ICF/DD rate increase

This provides a 5% rate increase for ICF/DDs and modifies the rates and procedures related to variable rates and services during the day. (Effective Jan. 1, 2022; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Sections 44-46)

Personal care assistance (PCA) and Community First Services and Supports (CFSS)

CFSS payment rates and PCA payment rates (in fee for service and managed care)

This change establishes a PCA or CFSS rate framework, a service rate increase and a new requirement for provider cost reporting for PCA or CFSS service providers. (Effective Oct. 1, 2021, or upon federal approval; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Sections 48, 49, 55)

PCA compensation for services provided by a parent or spouse

This resumes the temporary waiver that allowed PCA agencies to hire parents of minors and spouses as a PCA worker for their family members, effective July 1, 2021. Parents and spouses must enroll with MHCP as an individual PCA to receive payment for PCA services. (Effective day following enactment; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Section 70)

Direct support services rate and budget increase

This change ratifies the self-directed workforce contract and increases rates and budgets for direct support services through PCA services, Consumer Directed Community Supports (CDCS), and the Consumer Support Grant (CSG). This increases the PCA reimbursement rate to $4.90 per 15 minutes, for a total of $19.60 per hour. It increases CDCS budgets in the disability waivers by 1.58%, increases CDCS budgets in EW and AC by 3.16%, and increases CSG budgets by 10.10%. (Effective Oct. 1, 2021, or upon federal approval; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 13, Sections 72, 77)

Expanded eligibility for enhanced PCA or CFSS service rate

This change reduces from 12 to 10 the required hours of service a person needs to qualify for an enhanced PCA service rate or an enhanced CFSS service rate. This change also applies to eligibility for enhanced budgets in CDCS and the CSG. (Effective Jan. 1, 2022, or upon federal approval, whichever occurs later)

This change also modifies the monthly case mix budget cap exception under the Elderly Waiver program by making technical changes, requiring the commissioner to calculate the difference between PCA services and enhanced rate PCA services. Prohibits the additional budget amount approved under an exception from exceeding the difference between PCA services rate and the enhanced PCA services rate. (Effective Jan. 1, 2022; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article13, Sections 6, 13, 14, 50, 54, 59, 67)

Transportation services

Nonemergency medical transportation (NEMT) transit passes

This change provides a monthly public transit pass for the nonemergency medical transportation needs of people who use MA and are well-served by public transit. Provides that people are eligible for a transit pass if they are eligible for one public transit trip for a covered service during a month and have not received a transit pass for that month from another program administered by a county or tribal nation. (Effective July 1, 2021; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 1, Section 13)

Grants

HCBS workforce development grant

This change provides $5,588,000 in both fiscal years 2023 and 2024 to address challenges related to attracting and maintaining direct care workers who provide home and community-based services for people with disabilities or older adults. DHS must publish a report by March 1, 2022, detailing the final plan for the use of the funds. (Effective upon federal approval of Minnesota’s spending plan under the American Rescue Plan Act of 2021; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 17, Section 20)

Grants for technology for people who use HCBS

This provides $500,000 in fiscal year 2022 and $2 million in fiscal year 2023 to provide technology assistance, including but not limited to internet services, to older adults and people with disabilities who do not have access to technology resources necessary to use remote service delivery. (Effective upon federal approval of Minnesota’s spending plan under the American Rescue Plan Act of 2021; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 17, Section 3)

Provider capacity grants for rural and underserved communities

This establishes a grant program to increase HCBS provider capacity for rural and underserved communities. (Effective upon federal approval of Minnesota’s spending plan under the American Rescue Plan Act of 2021; Minnesota Session Laws 2021, First Special Session, Chapter 7, Article 17, Section 10)

Background studies

Find a 2021 legislative changes summary on the Background studies, What’s new webpage.

Questions?

If you have questions about grant information, contact the Disability Services Division response center at DSD.ResponseCenter@state.mn.us or 651-431-4300 or 866-267-7655 (toll free).

If you have questions about background studies, email the background study administrator or call the Background Study Division at 651-431-6620.

Call the MHCP Provider Resource Center at 651-431-2700 or 800-366-5411 if you have other questions about this information.

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