The Minnesota Department of Human Services (DHS) received federal approval for the 2026 reimbursement rates for Personal Care Assistance (PCA) and Community First Services and Supports (CFSS) services backdated to Jan. 1, 2026. Federal approval includes the enhanced rates for PCA and CFSS and the enhanced budget in CFSS.
PCA Choice and financial management services (FMS) providers received a memo in their PRVLTR folder of their MN–ITS mailbox on May 28, 2026, titled: NPI/UMPI_PRVLTR_20260528_Tiered_minimum_wage_floors_for_PCA_and_CFSS_workers.pdf
The memo included new tiered wage floors and additional information on the budget changes to the authorizations for CFSS budget model members.
PCA Choice and CFSS budget model
Direct support workers serving members in PCA Choice and the CFSS budget model are now required to be paid the new minimum wages for hours worked on or after Jan. 1, 2026. PCA Choice agencies and FMS providers must pay direct support workers retroactively for hours worked since Jan. 1, 2026, to comply with the new minimum wage floor increases following federal approval of the reimbursement rates, including the enhanced rate and budget percentage (12.5%). PCA Choice agencies have been receiving the higher rate since Jan. 1, 2026, and must pay direct support workers retroactively within 31 calendar days from the memo date.
PCA Choice agencies and FMS providers must use the increase from the enhanced rate and budget percentage for wages and wage-related costs for workers whose services triggered the enhanced rate and budget. PCA and CFSS agencies and FMS providers may find instructions on the CFSS manual – PCA, CFSS and CSG enhanced rate budget webpage.
DHS has made changes to the CFSS budget model to better support the payment of higher wages to more experienced workers. On June 1, 2026, we will add dollars to the budgets of CFSS budget model members based on the tier of the workers they've employed over the previous 11 months. At the end of each calendar quarter (April, July, October, January), we will add dollars to the member’s service authorization based on the experience level and hours worked of their employees in the previous calendar quarter.
PCA traditional and CFSS agency model
PCA traditional and CFSS agency model providers are already receiving tiered reimbursement rates for claims that include a worker in tiers L1–L4. The purpose of the tiered rates is for the increase to be used for wages and wage-related costs for the worker. PCA traditional and CFSS agency model providers are required to document that at least 72.5% of revenue received from PCA and CFSS reimbursement rates were used to pay worker wages and benefits. (pub. 6/1/26)