AASD and DSD eList announcement

Date: Nov. 3, 2026
To: Lead agencies, case managers, care coordinators and other interested parties
From: DHS Aging and Adult Services and Disability Services divisions
Purpose: To provide information about increases to select service rates and monthly budgets
Effective: Jan. 1, 2027
Contact: For questions about disability waivers, use the DSD Contact Form. For questions about Alternative Care (AC), Essential Community Supports (ECS) and Elderly Waiver (EW), email DHS.AASD.HCBS@state.mn.us.

Rate and budget changes on Jan. 1, 2027

DHS will implement the following rate and budget increases on Jan. 1, 2027.

AC, ECS and EW

The following increases apply to AC, ECS and EW:

· 3.78% increase to AC and EW monthly case mix budget caps.

· 1.38% increase to ECS budget caps.

· 3.78% increase to consumer directed community supports (CDCS) budgets under AC and EW.

· 3.78% increase to EW customized living and 24-hour customized living daily and monthly limits. This change will happen on a rolling basis as lead agencies renew service plans throughout the year.

· 5.15% increase to home-delivered meals.

· 3.68% increase to environmental accessibility adaptations (EAA).

Disability waivers

DHS is not making any rate changes to Brain Injury (BI), Community Alternative Care (CAC), Community Access for Disability Inclusion (CADI) or Developmental Disabilities (DD) waiver services for Jan. 1, 2027.

Home care nursing and home health services

The following increases apply to home care nursing and home health services:

· 3.24% increase to home health aide, skilled nursing, occupational therapy, physical therapy, respiratory therapy and speech therapy (market basket adjustment).

· 3.24% increase to home care nursing (market basket adjustment).

· 3.24% increase to Consumer Support Grant (CSG) home care nursing ratings.

The same percentage increases also apply to extended home care services.

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

DHS is not making any rate changes for PCA, CFSS and CSG for Jan. 1, 2027.

Intermediate care facility for persons with developmental disabilities (ICF/DD)

The following increases apply to ICF/DD:

· Adjustment to the ICF/DD operating payment rate floors of 3.68% based upon Consumer Price Index.

· Class A facility increase to $301.22.

· Class B facility increase to $346.14.

For facilities that are already at or exceed the rate floors stated above, DHS will not increase the operating payment rate.

MMIS automation process

DHS scheduled the MMIS automation process to run on Dec. 15, 2026. We will provide additional information and instructions closer to the date.

Additional information

DHS also posted this information on DHS – Long-term services and supports rate changes.

We will send future communications as we update rate- and budget-related eDocs, policy pages and instructions.

Previous eList announcements

AASD LEAD AGENCY ARCHIVE | DSD LEAD AGENCY ARCHIVE | DSD STAKEHOLDER ARCHIVE