DSD eList announcement
Date: March 10, 2026
To: Lead agencies, Disability Waiver Rate System (DWRS) rate mentors and providers
From: DHS Disability Services Division
Purpose: To provide an update on rate remediation efforts, including guidance for 15 DWRS framework services and family residential services (FRS) rates
Contact: DSD Contact Form
Update on DWRS rate remediation efforts
DHS is providing rate guidance for lead agencies and providers for the following 15 DWRS framework services:
Centers for Medicare & Medicaid Services (CMS) approval status
As of March 10, 2026, DHS has not received CMS approval to use the 2026 component values included in both the Feb. 6, 2026, and March 6, 2026, MnCHOICES releases.
March 6, 2026, MnCHOICES release
The March 6, 2026, MnCHOICES release removed the FRS services (i.e., FRS, adult daily; FRS, child daily; FRS, adult, life sharing daily) from the DWRS framework and used the current MnCHOICES assessment case mix to apply a tiered rate. However, DHS cannot implement the FRS tiered rate authorization in the Medicaid Management Information System (MMIS) until we receive CMS approval.
After DHS receives CMS approval, lead agencies must implement the FRS tiered rates at the person’s next waiver renewal and/or if the person has a change in service (i.e., change in condition, change in service provider). Refer to DHS – Family residential, life sharing tiered rates FAQ.
Lead agency instructions for FRS rate calculation
On March 2, 2026, DHS provided DWRS rate mentors with instructions and an amended FRS framework worksheet.
DWRS rate mentors must:
2026 rate remediation timeline
DHS is working to analyze and implement a rate remediation plan that reduces capacity strain on everyone. We do not plan to publish any plans until after we receive CMS approval. That means lead agencies must plan to remediate rates for 15 framework services with start dates of Jan. 1, 2026, or later, after DHS receives CMS approval.
After we receive CMS approval, DHS will generate remediation reports for lead agencies that cover three time periods:
Period one
DHS is formulating new frameworks to recalculate rates for framework services with a start date of Jan. 1, 2026, or later, that MnCHOICES calculated before Feb. 6, 2026.
No lead agency action is required on period one framework service rates until we receive CMS approval.
After DHS receives CMS approval, we will send lead agencies reports with the lines, corrected rates and instructions to adjust lines in MMIS.
Explanation of changes
DHS updated base wage index values in DWRS frameworks using standard occupational classification (SOC) data from the Bureau of Labor Statistics (BLS).
Period two
DHS will correct rates for framework services with a start date of Feb. 1, 2026, or later, that MnCHOICES calculated after the Feb. 6. 2026, MnCHOICES release.
No lead agency action is required on period two framework service rates until we receive CMS approval.
After DHS receives CMS approval, we will:
Explanation of changes
The Feb. 6, 2026, MnCHOICES release applied the 2026 component values. However, CMS has not approved the 2026 component values.
Period three
On March 2, 2026, DHS provided DWRS rate mentors with an amended FRS framework worksheet to use to recalculate the rate for FRS services with a start date of Jan. 1, 2026, or later, that they enter into MnCHOICES on March 6, 2026, or later. Lead agencies must use the amended FRS framework, as described in the lead agency instructions for FRS rate calculation section above.
Explanation of changes
The March 6, 2026, MnCHOICES release applied the 2026 legislative mandate to end FRS as a framework service and applied a tiered rate methodology based on the person’s MnCHOICES case mix. However, CMS has not approved these changes.
Lead agency and provider guidance on next steps
DHS wants lead agencies and providers to make informed decisions about rate authorizations processed before we receive CMS approval. We advise lead agencies and providers to:
Note: All framework rates processed before DHS receives CMS approval will require remediation after we receive CMS approval, except FRS rates calculated using the amended framework worksheet and manually entered in MnCHOICES.
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