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Consumer Directed Community Support (CDCS) Manual

Consumer Directed Community Support (CDCS) Manual


Financial management services (FMS) providers (unbundled)

For the previous version of this policy (i.e., before unbundling), refer to CDCS Manual – CDCS service category: FMS providers.

Page posted: 12/10/24

Page reviewed:

Page updated: 6/12/25

Legal authority

Federally approved BI, CAC, CADI, DD and EW waiver plans, Alternative Care (AC) program (Minn. Stat. §256B.0913)

Unbundling project

This page includes CDCS unbundled service category policy. When a person transitions to the unbundled CDCS service categories, they will use the policy on this page.

For information about who must use this new policy, refer to the Dec. 10, 2024, eList announcement.

Definition

Financial management services (FMS) provider: A Minnesota Health Care Programs (MHCP)-enrolled organization that a person uses to help them with employer-related responsibilities and financial management service tasks. For more information about the services, refer to CDCS Manual – Unbundled service category: FMS.

Overview

A person who self-directs their services through CDCS or the Consumer Support Grant (CSG) must choose an FMS provider to provide FMS.

A person cannot bill the state directly for approved services. An FMS provider is the only entity that can submit claims and receive payments from the state. These payments are used to pay workers and for approved goods and other services.

Multiple people must use the same FMS provider when all the following are true:

  • · They live in the same household.
  • · They receive services from the same worker.
  • · They use the Community First Services and Supports (CFSS) budget model and/or CDCS.

    • When there is a joint employer, all people associated with that joint employer must use the same FMS provider. Joint employment is determined by an FMS provider or other entity based on guidelines provided by the U.S. Department of Labor.

    Provider standards and qualifications

    DHS determines if FMS providers meet the qualifications through a Request for Proposal (RFP) process at a frequency determined by DHS. To view open RFPs, refer to DHS – Grants and RFPs.

    An FMS provider must meet all of the following qualifications:

    1. Successfully complete a readiness review before enrollment, conducted by a person or organization that meets the qualifications required by the state.

    2. Be a financially solvent organization.

    3. Have all of the following:

  • · Current and adequate liability insurance and bonding as defined in the RFP.
  • · Knowledge of and compliance with Internal Revenue Service (IRS) requirements.
  • · An information technology security officer.
  • · A certified payroll professional, certified public accountant or individual with a bachelor’s degree in accounting.
  • · An electronic tracking, reporting and verification software product that can report and analyze data on people who receive services and support workers across FMS providers.
  • · The ability to provide services statewide.
  • · The ability to meet the requirements under a collective bargaining contract.
  • · An established customer service system.

    • Requirements to act as agent of the person

    FMS providers function as statewide vendor fiscal/employer agent (VF/EA) FMS organizations in accordance with Section 3504 of the IRS Code and Revenue Procedure Code 2013-39, as applicable.

    To provide fiscal agent services, an FMS provider must:

  • · Obtain an IRS authorization from the person to act as an agent for them.
  • · Have the ability to advise the person about their obligations for workers’ compensation.
  • · Help the person obtain workers’ compensation, if needed, and any other required insurance.

    • Responsibilities

    FMS providers have a responsibility to disclose financial interests, have an agreement with the person, make public their service rate(s) and have the capacity to submit background studies.

    Disclose financial interests

    An FMS provider who has any direct or indirect financial interest in the delivery of certain services to the person must disclose in writing to the person the nature of that relationship. These services are:

  • · Personal assistance.
  • · Treatment and training.
  • · Environmental modifications – home modifications.
  • · Environmental modifications – vehicle modifications.

    • The FMS provider must obtain a document signed by the person stating the person both:

  • · Acknowledges their understanding of the information disclosed about the direct or indirect financial interest.
  • · Identifies and confirms their choices of services and providers.

    • Have an agreement with the person

    An FMS provider must have a written agreement with the person that outlines roles and responsibilities of the FMS provider, the person and the support workers. The agreement should also identify the FMS provider’s fees and outline the actions the FMS provider or person will take when the agreement is not followed.

    Have the ability to submit background studies

    An FMS provider must have the ability to submit background study requests to DHS on behalf of the person. The type and extent of background studies the FMS is required to facilitate are those that follow the requirements under Minn. Stat. Ch. 245C. For more information, refer to CDCS Manual – Background study requirements.

    Documentation and reporting requirements

    FMS providers must maintain records to ensure a clear audit trail and track all CDCS spending, including:

  • · Timesheets of people paid to provide supports.
  • · Receipts that include date of purchase, vendor contact information, cost and description of item(s) for any goods purchased.
  • · Invoices.
  • · Payroll summaries.

    • FMS providers also must:

  • · Submit claims that correspond with services, amounts, time frames, etc., approved and authorized by the lead agency in the CDCS community support plan (CSP).
  • · Report information as outlined on CDCS Manual – FMS provider reporting frequency to lead agencies and people/families
  • · Maintain records for a minimum of five years from the claim date and have them available for audit or review upon request.

    • For more information, refer to CDCS Manual – FMS provider documentation and reporting (unbundled).

    Rates

    FMS responsibilities

    FMS providers must:

  • · Establish the maximum rate(s) for their services.
  • · Make public their service rates through DHS – FMS provider information.
  • · Negotiate with the person the rate and scope of financial management services and include that information in the CDCS CSP.
  • · Establish provider fees on a fee-for-service basis instead of a percentage of the person’s service budget.
  • · Not include set-up fees, base rates or other similar charges in provider fees.

    • DHS responsibilities

    DHS may establish maximum FMS provider fees.

    Service limitations

    FMS providers should not in any way:

  • · Limit or restrict the person’s choices of service or support providers.
  • · Help develop the person’s CDCS CSP.

    • FMS providers may offer CDCS support planning services, but they cannot provide these services to a person using their FMS services.

    Additional resources

    CDCS Manual – Unbundled service category: FMS
    DHS – FMS provider information
    MHCP Provider Manual – FMS

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