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AASD and DSD eList announcement

Date: Dec. 16, 2025
To: Waiver service providers, lead agency staff and other interested parties
From: DHS Aging and Adult Services and Disability Services divisions
Purpose: To announce the end of the home and community-based services (HCBS) settings rule corrective action plan (CAP) and that DHS achieved full compliance with the HCBS settings rule
Contact: For questions about Alternative Care (AC), Essential Community Supports (ECS) or Elderly Waiver (EW), email dhs.aasd.hcbs@state.mn.us. For questions about disability waivers, use the DSD Contact Form.

Successful completion of the HCBS settings rule CAP for 1915c waivers and AC program

As of Sept. 17, 2025, the Centers for Medicare & Medicaid Services (CMS) determined that DHS meets all requirements outlined in the Minnesota HCBS settings rule CAP after more than a decade of collaboration and dedicated work. We announced the CAP in a May 16, 2023, eList announcement.

This milestone:

· Marks the successful conclusion of the CAP for the 1915(c) waivers and the AC program.

· Confirms that all Minnesota settings previously submitted to CMS for heightened scrutiny meet federal HCBS settings standards.

· Represents major progress toward ensuring that older adults and people with disabilities can receive services in truly home and community-based environments.

Fully compliant settings

For lists of settings that successfully completed the heightened scrutiny process, refer to:

· DHS – Evidentiary packages submitted for heightened scrutiny. CMS determined all settings listed on this page are fully compliant.

· DHS – Requirements for new HCBS settings. CMS determined all settings with an updated date of July 17, 2025, or earlier listed under the evidentiary packages tab are fully compliant.

Provider actions to complete the heightened scrutiny process

All new HCBS providers must comply with the HCBS standards and location requirements before they enroll with Minnesota Health Care Programs (MHCP).

For AC, EW or ECS services in settings adjoined to or on the same property as an institution, providers also must complete the heightened scrutiny process to be determined compliant.

For more information, refer to DHS – Requirements for new HCBS settings.

DHS actions

DHS will continue to:

· Post evidentiary packages submitted July 18, 2025, or later under the evidentiary packages tab on DHS – Requirements for new HCBS settings.

· Notify settings of their compliance status as they complete the heightened scrutiny process.

· Use several strategies (e.g., provider enrollment process, case management and licensing standards) at the provider, lead agency and recipient levels to ensure ongoing compliance with the HCBS settings requirements.

Collaborative effort

DHS’ full compliance with the HCBS settings rule reflects years of collaboration, innovation and commitment to person-centered supports. We thank lead agencies, partners, providers and community members for their hard work and persistence to ensure every person has the opportunity to live, work and thrive in the community they choose.