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Cost of Living Adjustments

Page posted: 01/01/06

Page reviewed: 6/24/11

Page updated: 11/27/2007

Legal Authority

Minn. Stat.ยง256B.5012, subd. 6


Cost of Living Adjustment: Rate increase available to ICF/DD when legislative action and appropriation occurs.


The Minnesota Legislature has historically implemented cost of living adjustments annually for licensed ICFsDD. Facilities whose rates are governed by closure agreements or receivership agreements are not eligible for COLAs.

Rate Increase

There are no currently mandated cost of living adjustments.

Distribution Plan

ICFs may apply for a portion of the payment rate increase provided for employee wages, benefits and associated costs. Distribution Plans identify how ICFs/DD will distribute the funds. To receive the compensation-related component of the COLAs, ICFs must submit the ICF/DD distribution plans to DHS for approval.

DHS issues bulletins with every legislated COLA that describes the legislative language and distribution plan to be completed. See Continuing Care and other provider rate changes


Use the UB-92 paper form or submit via MN-ITS.

DHS automatically adjusts claims paid before DHS enters the new rate with the next facility payment. If you have questions, contact the Provider Call Center (651) 431-2700 or (800) 366-5411.

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