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Community-Based Services Manual (CBSM)

Community-Based Services Manual (CBSM)


AASD eList announcement

Date: Aug. 25, 2026
To: Lead agencies, customized living providers and other interested parties
From: DHS Aging and Adult Services Division
Purpose: To announce changes for the Elderly Waiver (EW) customized living disproportionate share program
Application period: Sept. 1 to 30, 2026
Contact: dhs.aasd.hcbs@state.mn.us

EW customized living services rate floor adjustments for disproportionate share facilities

The 2026 Minnesota Legislature approved changes to the rate floor adjustment (i.e., minimum daily rate) for customized living services providers that are designated as disproportionate share facilities.

Eligible facilities

To be eligible to apply for payments in 2027, the facility must meet all the following requirements as of Sept. 1, 2026:

  • · The facility was determined eligible for the disproportionate share rate adjustment in application year 2023 and received rate floor payments in rate year 2024.
  • · At least 83.5% of the facility’s residents are customized living residents who use EW, Brain Injury (BI) or Community Access for Disability Inclusion (CADI) waivers.
  • · At least 70% of those customized living residents use EW.

    • As of Oct. 1, 2023, DHS cannot process any new applications for disproportionate share facilities after the Sept. 1 through Sept. 30, 2023, application period.

    Language changes

    The 2026 Minnesota Legislature made the following language changes about residency in disproportionate share facilities:

  • · Effective Aug. 31, 2026, a resident who experiences an interruption to waiver benefits because of a temporary absence from the facility is considered a customized living resident during the temporary absence, as described in Minn. Stat. §256S.205, subd. 1(c), added by Laws 2026, chapter 95, section 33, subdivision 1.
  • · “Residing in the facility” means the facility is the resident’s fixed permanent home and the place to which the resident intends to return following a temporary absence, as described in Minn. Stat. §256S.205, subd. 1(g), added by Laws 2026, chapter 95, section 33, subdivision 1.
  • · The number of customized living residents [add] residing [end add] in the facility on Sept. 1 of the application year, broken out by specific waiver program, as described in Minn. Stat. §256S.205, subd. 2(a), added by Laws 2026, chapter 95, section 33, subdivision 2.

    • Adjustment amount

    The Legislature-approved rate floor adjustment amount is $141 for calendar year 2027.

    Qualified facilities will get adjustments up to the rate floor on claims for people who use EW and receive 24-hour customized living services from Jan. 1 to Dec. 31, 2027. The payment does not apply to claims for residents who use the BI and CADI waivers.

    How to apply

    Currently approved, eligible facilities may use the following information to apply:

  • · Application link: To apply, refer to EW Customized Living Services Disproportionate Share Facility Application, DHS-8157.
  • · Application period: Sept. 1 to Sept. 30, 2026.
  • · More information: Refer to the billing section of Minnesota Health Care Programs Provider Manual – EW and Alternative Care Program.

    • After DHS receives each application, we will ask the applicant to submit a list of waiver participants in a secure format to verify the resident numbers in the application.

    Lead agency information

    EW rate floor adjustments do not affect lead agency:

  • · Processes for support planning and rate setting.
  • · Daily rates.
  • · Case mix budgets.

    • Managed care organizations that serve as lead agencies must apply the rate floor adjustment when eligible providers submit payment claims.

    For more information on lead agency billing, refer to the authorization, rates and billing section of CBSM – Customized living (including 24-hour customized living).

    Previous eList announcements

    AASD LEAD AGENCY ARCHIVE

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