Page posted: 3/13/26

Lead agencies must plan to remediate rates for 15 DWRS framework services with start dates of Jan. 1, 2026, or later, after DHS receives approval from the Centers for Medicare & Medicaid Services (CMS) to use the 2026 DWRS frameworks.

Affected services

The following DWRS framework services will require rate remediation:

· Adult day services – 15 minute.

· Adult day services – daily.

· Day support services.

· Prevocational services – 15 minute.

· Prevocational services – daily.

· Employment services (i.e., employment support, employment exploration, employment development).

· Individualized home supports (IHS) with family training – 15 minute.

· IHS with training – 15 minute.

· IHS with training – daily.

· IHS without training.

· Night supervision.

· Positive supports (i.e., professional, analyst and specialist).

· Family residential services (FRS), including FRS, adult daily; FRS, child daily and FRS, adult, life sharing daily.

· Community residential services.

· Integrated community supports (ICS).

Lead agencies will not have to remediate rates for:

· Adult day bath.

· Customized living (CL).

· 24-hour CL.

· Any of the above 15 framework services that have a DHS-approved exception rate.

· FRS services they enter into MnCHOICES on March 6, 2026, or later, before DHS receives CMS approval, if they use the amended FRS framework worksheet DHS emailed to DWRS rate mentors on March 2, 2026.

Lead agency instructions for rate remediation after CMS approval

After DHS receives CMS approval, we will send DWRS rate mentors reports with the lines, corrected rates and instructions to adjust lines in the Medicaid Management Information System (MMIS).

Lead agency actions

Lead agencies must correct the affected services lines in MMIS using the DHS-calculated rate that we will provide to DWRS rate mentors. The DHS-calculated rate will include the updated base wage index values from the Bureau of Labor Statistics (BLS) (refer to 2025 Laws, First Special Session, chapter 9, article 2, section 30).

Lead agency instructions for FRS rate calculation as of March 6, 2026

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 MMIS until we receive CMS approval.

DHS actions

On March 2, 2026, DHS provided DWRS rate mentors with instructions and an amended FRS framework worksheet.

Lead agency actions

As of March 6, 2026, DWRS rate mentors must:

· Use the amended FRS framework worksheet to manually recalculate the FRS rate for all FRS services with a start date of Jan. 1, 2026, or later that they enter into MnCHOICES on March 6, 2026, or later.

· Follow these instructions until DHS issues updated guidance.

· Send a saved copy of the amended framework to the provider after they complete the rate calculation, according to Minn. Stat. §256B.4914, subd. 4(e).

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.

Background information

DHS cannot implement the currently published 2026 DWRS framework rate changes until we receive CMS approval of the Community Alternative Care (CAC), Community Access for Disability Inclusion (CADI) and Developmental Disabilities (DD) waiver amendments and the Brain Injury (BI) waiver renewal.

More information

For more information, refer to the direction on 2026 DWRS framework rates and service changes section of DHS – DWRS frequently asked questions.