DSD eList announcement
Date: Oct. 27, 2026
To: Lead agencies
From: DHS Disability Services Division
Purpose: To clarify disability waiver eligibility after withdrawal or denial of continuing disability review (CDR)
Effective: Immediately
Contact: For questions about disability waivers, use the DSD Contact Form. For questions about Medical Assistance (MA) eligibility policy, submit an inquiry through HealthQuest.
Disability waiver eligibility after loss of disability certification
DHS is clarifying that a person’s disability waiver must close after the person’s loss of disability certification. This applies even if the person’s MA under a disabled basis remains open while the lead agency financial worker redetermines MA eligibility.
Loss of disability certification most often occurs when a person’s CDR with the Social Security Administration (SSA) or State Medical Review Team (SMRT) results in a qualifying withdrawal or denial.
Lead agency actions
When the lead agency becomes aware that a person no longer has a valid disability certification, the lead agency must:
If the person appeals the lead agency’s decision to close the waiver, the lead agency must follow current policy for appeals. For more information, refer to CBSM – Notice of Action.
Waiver closure
A person no longer has a valid disability certification to continue a disability waiver when one of the following occurs:
SMRT notices
SMRT sends notices for certifications, withdrawals and denials by:
Instructions for CDR withdrawals
If SMRT withdraws a person’s CDR because of missing or insufficient required forms or information, the person does not have a valid SSA or SMRT disability certification for the disabled basis of MA eligibility or a disability waiver.
If a person submits the required SMRT documents (i.e., missing or insufficient required forms or information) to the lead agency within 10 calendar days after SMRT issues the withdrawal, the lead agency must submit the documents through the SMRT Document Portal, DHS-8462 and contact SMRT directly via the SMRT hotline at 651-431-2493. The assessor or case manager can assist in this process. The lead agency must continue to close the waiver unless SMRT confirms that they have accepted the referral.
A financial worker should only submit a new SMRT referral for a person who wants to re-establish disability certification and who has submitted their completed application and supporting documents for disabled basis of MA eligibility. Before a financial worker submits a new SMRT referral, they must:
Instructions for CDR denials
When SSA or SMRT issue a CDR denial, the financial worker must:
The assessor or case manager must provide a 10-calendar day notice of action to the person.
Instructions for CDR denials upheld on appeal
When a final appeal decision upholds the SSA or SMRT denial, the person no longer meets the disability certification requirement for MA under a disabled basis or for a disability waiver.
When a human services judge issues an appeal decision related to SMRT determination:
If the person appeals the decision to district court, the lead agency must close the waiver.
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