e. Legislature increases rates for Elderly Waiver customized living, excludes CADI-CL

Legislature increases rates for Elderly Waiver customized living, excludes CADI-CL 2021, 1st Special Session HF33/SF37 Chapter 7, Article 13, Sections 63–64 HHS omnibus bill Effective: This section is effective January 1, 2022, or upon federal approval, whichever is later

Short description The rates and rate components for Elderly Waiver (EW) and EW customized living (CL), EW foster care, Alternative Care (AC), and Essential Community Supports (ECS) supports will be increased, on average, by an estimated 3%. A different formula is used for Community Access for Disability Inclusion (CADI) CL, which results in nominal increase.

Summary In 2017, the legislature adopted a Care Providers of Minnesota proposal to blend 10% of a new payment rate methodology for certain rates used by the Elderly Waiver (EW) and EW Customized Living (CL), Community Access for Disability Inclusion (CADI) Customized Living (CL), EW foster care, Alternative Care (AC), and Essential Community Supports (ECS) programs with 90% of the existing rates on January 1, 2019.

The 2021 legislature increased the blend to 18.8% of the new payment methodology and 81.2% of the 2017 rates for EW, EW-CL, AC, and ECS. As a result, beginning January 1, 2022, the service rates used will increase by an average of 3%. It is assumed that the increased will be phased in as clients are reassessed during the year. Since each service rate is calculated separately, the actual increase will differ and is not known.

CADI-CL will see a nominal rate increase based on 10% of the new value and 90% of the 2017 rates.

Implications EW, EW-CL, AC, and ECS providers will see an increase to the service rates used to establish the monthly payments received beginning January 1, 2022, as clients are reassessed.

Bill language https://www.revisor.mn.gov/laws/2021/1/Session+Law/Chapter/7/

Sec. 63. Minnesota Statutes 2020, section 256S.21, is amended to read: 256S.21 RATE SETTING; APPLICATION. The payment methodologies in sections 256S.2101 to 256S.215 apply to elderly waiver, elderly waiver customized living, and elderly waiver foster care, and elderly waiver residential care under this

chapter,; alternative care under section 256B.0913,; essential community supports under section 256B.0922,; and community access for disability inclusion customized living and brain injury customized living under section 256B.49. EFFECTIVE DATE. This section is effective January 1, 2022, or upon federal approval, whichever is later. The commissioner of human services shall inform the revisor of statutes when federal approval is obtained. Sec. 64. Minnesota Statutes 2020, section 256S.2101, is amended to read: 256S.2101 RATE SETTING; PHASE-IN. Subdivision 1. Phase-in for disability waiver customized living rates. All rates and rate components for services listed in section 256S.21 community access for disability inclusion customized living and brain injury customized living under section 256B.4914 shall be the sum of ten percent of the rates calculated under sections 256S.211 to 256S.215 and 90 percent of the rates calculated using the rate methodology in effect as of June 30, 2017. Subd. 2. Phase-in for elderly waiver rates. Except for home-delivered meals as described in section 256S.215, subdivision 15, all rates and rate components for elderly waiver, elderly waiver customized living, and elderly waiver foster care under this chapter; alternative care under section 256B.0913; and essential community supports under section 256B.0922 shall be the sum of 18.8 percent of the rates calculated under sections 256S.211 to 256S.215, and 81.2 percent of the rates calculated using the rate methodology in effect as of June 30, 2017. The rate for home-delivered meals shall be the sum of the service rate in effect as of January 1, 2019, and the increases described in section 256S.215, subdivision 15. EFFECTIVE DATE. This section is effective January 1, 2022, or upon federal approval, whichever is later. The commissioner of human services shall inform the revisor of statutes when federal approval is obtained.