General guidance about Disability Waiver Rate System (DWRS) compensation thresholds
Page updated: 7/31/25
Beginning Jan. 1, 2029, home and community-based services (HCBS) provider organizations, except assisted living facilities, must spend a specified percentage of their DWRS revenues on compensation to direct care staff. Providers previously were required to meet certain threshold levels outlined in Minn. Stat. §256B.4914, subd. 10d, but the 2025 Minnesota Legislature postponed implementation until Jan. 1, 2029. For more information, refer to DHS – DWRS compensation thresholds policy. Direct care compensation includes costs such as:
Some HCBS provider organizations might also offer other benefits to their employees that are not explicitly listed in statute. These benefits may include employee assistance programs, self-funded workers' compensation policies or self-insured health insurance benefits. While these costs cannot be allocated directly to individual employees, they may still be considered part of a direct care worker’s compensation package.
Note: Administrative staff who provide direct care can also have this portion of their wages count toward their designated compensation threshold. Provider organizations should allocate the affiliated costs of administrative staff who perform direct care duties to the correct program service type within their DWRS cost report. For more information on how to allocate the time of administrative staff who also provide direct care services, refer to the administrative and program support cost allocation – employees section.
Tracking
Beginning in 2030, DHS plans to track providers’ alignment with the designated compensation thresholds through submitted DWRS cost reports.
Additional resources
For more information on the DWRS compensation threshold policy, refer to:
DHS will share additional information as it becomes available.
For all other questions, email DHS.costreport@state.mn.us.
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