DSD eList announcement
Date: Sept. 29, 2026
To: Counties, Tribal Nations, current and prospective integrated community supports (ICS) providers
From: DHS Disability Services Division
Purpose: To inform current and prospective ICS providers of how the provider enrollment moratorium and 245D licensing moratorium affect ICS and announce updates to the setting capacity report (SCR) review process
Effective: Sept. 29, 2026
Contact: DSD Contact Form
Updates on moratoriums that affect ICS
ICS currently is subject to two moratoriums:
1. 245D licensing moratorium.
2. Provider enrollment moratorium.
This eList explains how each moratorium affects ICS.
245D licensing moratorium
The 245D licensing moratorium means DHS cannot issue new 245D licenses or enroll new providers in high-risk services. For more information, refer to DHS – Licensing for home and community-based services (HCBS) – 245D providers.
245D licensing moratorium exceptions
Providers that want to open an ICS setting but do not yet have a 245D license or do not have ICS listed on their enrollment record must:
If a provider receives a 245D licensing moratorium exception, they must include documentation of the approved exception when they submit Setting Capacity Report (SCR), DHS-8062 to DHS via email at hcbs.settings@state.mn.us. DHS will deny all SCR forms submitted without approved moratorium exception documentation.
Provider enrollment moratorium
As of Jan. 30, 2026, DHS implemented a provider enrollment moratorium for high-risk services, including ICS. For more information, refer to MHCP provider news and updates – July 10, 2026: Temporary moratorium on enrolling high-risk service providers extended.
Provider enrollment moratorium exceptions
DHS will accept requests for provider enrollment moratorium exceptions in the following two scenarios:
If DHS grants a provider enrollment moratorium exception, it does not guarantee that DHS will approve the SCR. The provider still must meet all existing license qualifications and ICS requirements. For more information, refer to CBSM – ICS.
SCR process
If a provider does not have an active 245D license or does not currently have ICS on their enrollment record, they must follow the steps outlined in both the 245D licensing moratorium and provider enrollment moratorium sections above before they submit SCR, DHS-8062 to DHS.
If a provider has ICS on their enrollment record (e.g., a provider wants to update capacity at an active ICS location, a provider wants to add an additional ICS location, a provider wants to change ownership), they are not subject to the 245D licensing moratorium or provider enrollment moratorium, but they must meet at least one of the following four criteria before they submit SCR, DHS-8062 to DHS:
1. The proposed ICS setting is in a region with low ICS capacity (i.e., availability of 10% or less of approved ICS units or five or fewer approved units).
Note: Counties and Tribal Nations can contact DHS via the DSD Contact Form to determine if their region has low ICS capacity.
2. A need exists for a new setting or capacity increase for an active ICS setting to support an identified person’s disability-assessed accessibility need. The person’s case manager must submit documentation of the person’s need.
3. The setting has housing assistance (e.g., U.S. Department of Housing and Urban Development [HUD], Housing Supports) available to ensure the person can afford rent. The person’s case manager must submit documentation of the housing assistance.
4. The ICS setting is part of a change of ownership, and people receiving ICS had informed choice about the change in ownership and have chosen to remain in their current homes and continue receiving ICS services at the setting.
Note: The new owner is subject to the provider enrollment moratorium if they do not currently have ICS on their enrollment record.
If the provider meets at least one of these four criteria, they may submit SCR, DHS-8062 to DHS via email at hcbs.settings@state.mn.us. DHS will only review an SCR if it meets at least one of the four criteria.
Requirements for providers that submitted SCR forms on or before Sept. 29, 2026
Providers that submitted an SCR on or before Sept. 29, 2026, will maintain their current place in the review queue. However, before DHS can review their SCR, the provider must send an email to DHS at hcbs.settings@state.mn.us with the following information:
Note: To verify the version of SCR, DHS-8062, confirm the 9-26 version date in the top right corner.
If DHS does not receive additional documentation by Dec. 31, 2026, we will close the SCR submission.
DHS actions
DHS updated:
DHS is working to update:
Additional upcoming moratoriums
The 2026 Minnesota Legislature passed two additional moratoriums applicable to ICS that go into effect Jan. 1, 2027. DHS will send an eList announcement with more information later this fall.
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