DHS partners with counties, tribes, providers, consumer groups, advocacy organizations and other partners in human services to address Minnesotans' needs.
The Disability Waivers Rate System moved to a more centralized mode of operation on Jan. 1, 2014. Please see Rates Management System in the Community-Based Services Manual for current information. DHS will continue to update this page in addition to the policy manual.
DHS is looking for comments on two proposed regional adjustment factor options (PDF) detailed in the Minnesota Regional Variation Analysis Final Report Jan. 30, 2015 (PDF). We would apply regional adjustment factors to the framework rates in the Disability Waiver Rate System.
Implementation depends on the comments we receive, more stakeholder input and so on. Find more information below under Regional variance study.
This analysis and the opportunity for public comment are requirements of Minn. Stat. §256B.4914.
The comment period begins at 8 a.m. Wednesday, July 1, 2015, and ends at 4 p.m. Friday, July 31, 2015. Email comments to DSD.PublicComments@state.mn.us.
In 2007, the Centers for Medicare and Medicaid Services informed Minnesota that its four disability waivers were out of compliance with federal requirements for uniform rate determination methods and standards. The disability waivers are the Brain Injury (BI), Community Alternative Care (CAC), Community Alternative for Disabled Individuals (CADI) and Developmental Disabilities (DD) waivers.
In January 2014, DHS established what is now known as the Disability Waivers Rate System.
Implementation of the system:
Failure to comply with the federal requirements jeopardizes the services to 37,000 people who rely on disability waiver services.
Goals of the system are to create statewide rate setting methodologies that:
People benefit from increased choice of provider(s) and geographic areas where they receive services.
Lead agencies benefit from use of a Web-based rate-setting calculator and are no longer required to negotiate rates with waiver providers.
Waiver providers benefit from more predictability of rates when the needs of people who receive services increase or people live in different areas of the state and require the same services.
Under Minn. Stat. §256B.4914, we are required to:
1. Study the regional differences in the cost of providing home and community-based services across the state.
2. Implement a regional adjustment factor to all rate calculations in the Disability Waiver Rate System.
DHS contracted with Truven Health Analytics, an independent research firm, to conduct this study.
This study concluded that the primary driver in provider costs, staff wages, does have a statistically significant variation throughout regions of the state. Regions used in this study are the Metropolitan Statistical Areas, identified in Section 2: Core Analysis of the Minnesota Regional Variation Analysis Final Report Jan. 30, 2015 (PDF).
As a product of these research findings, two separate options of regional variance factors have been generated.
Option 1: Uncapped version of regional variance factor
Values reflect research findings without placing limits on the final Regional Variance Factor that would be implemented.
Option 2:Capped version of regional variance factor
We place a three percent limit on the research findings. This means that no regional variance factor will increase or decrease a calculation by more than three percent.
The tentative implementation date is Jan. 1, 2016. We will communicate a formal public notice of the framework changes before Oct. 1, 2015. After Jan. 1, the new frameworks will take effect as service agreements renew.
CBSM - Rate Management System
Disability waiver rate setting frameworks
Disability waiver rate system frequently asked questions
Personal support policy clarification
Project rate component values (PDF)
Rates Management System (RMS) User Manual
RMS User Manual quick reference guides