System updated to pay new tiered PCA and CFSS agency rates effective Jan. 1, 2026
The Minnesota Department of Human Services has updated its payment system to implement the new tiered rates for personal care assistance (PCA) and Community First Services and Supports (CFSS) agency model services that went into effect Jan. 1, 2026. The payment system update was completed on Feb. 13, 2026, and is processing PCA and CFSS claims submitted on or after Feb. 13, 2026, at the correct tiered rates. Claims that include a worker not eligible for a tier were not affected.
Claims for dates of service Jan. 1, 2026 - Feb. 12, 2026
The payment system began and will continue to reprocess PCA and CFSS claims for dates of service Jan. 1, 2026, through Feb. 12, 2026, and include a worker in tiers L1 through L4. Providers will start to find these reprocessed claims on their remittance advice beginning March 24, 2026, and they may continue through April 2026.
Through this retroactive reprocessing, PCA and CFSS agency providers will receive the appropriate reimbursement rate for 2026 dates of service based on the worker’s assigned tier.
New tiered rates required by law
The updated tiered rate increases are authorized under Minnesota Statutes, 256B.851 as a “worker retention component” and became effective Jan. 1, 2026. The law intends for the increase to improve worker wages and benefits.
PCA traditional and CFSS agency model providers are required to document that at least 72.5% of revenue received from PCA and CFSS reimbursement rates are used to pay worker wages and benefits.
PCA Choice providers must pay tiered minimum wagesto workers serving members in the PCA Choice program. PCA Choice providers are not required to pay the new 2026 Tier 2 wage schedule until federal approval is obtained. We will post a separate message to notify providers once we receive federal approval.
Call the Minnesota Health Care Programs Provider Resource Center with any questions about this message at 651-431-2700 or 800-366-5411. (pub. 3/16/26)
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