DSD eList announcement
Date: Oct. 1, 2024
To: Disability waiver service providers
From: DHS Disability Services Division
Purpose: To inform waiver service providers of the new compensation thresholds policy and updated resources
Contact: dhs.costreport@state.mn.us
New resources for compensation threshold tracking
In an Aug. 20, 2024, eList, DHS announced implementation of thresholds for compensating direct care workers as a percentage of a provider’s Disability Waiver Rate System (DWRS) revenues. This new requirement takes effect Jan. 1, 2025. DHS created resources to further inform providers and help them report their costs correctly.
Resources
DHS – DWRS compensation thresholds policy includes background information, links to additional resources and answers to frequently asked questions (FAQs). DHS will:
DWRS Cost Reporting Tool Instruction Manual – General guidance about DWRS compensation thresholds provides insight to providers about how DHS will use their reported costs to determine compliance with the thresholds. DHS will continue to update this manual and encourages providers to refer back to it as they fill out their cost reports in future reporting periods.
Background
During the 2023 session, the Minnesota Legislature passed a new requirement that providers must pay a minimum portion of DWRS revenues as compensation to direct care workers. The amount of revenues is different by service bucket but aligns with rate framework assumptions in Minn. Stat. §256B.4914, subd. 10d:
This new requirement takes effect Jan. 1, 2025. DHS will begin tracking required compensation thresholds via DWRS cost reporting during the 2026 cost reporting period (i.e., beginning March 31, 2026).
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