Elderly Waiver Customized Living Services Rate Adjustment

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Aging & Adult Services Division

Community Supports for Seniors E-List

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Sept. 21, 2021

Date: Sept. 21, 2021
To: Providers of Elderly Waiver customized living services
From: DHS Aging and Adult Services Division
Purpose of E-Mail: To inform providers of a new Elderly Waiver customized living rate adjustment
Effective Date: Oct. 1, 2021
Contact: dhs.aasd.hcbs@state.mn.us

Elderly Waiver Customized Living Services Rate Adjustment

Establishes a rate floor, or minimum daily rate, for disproportionate share facilities

The 2021 Minnesota Legislature approved a rate floor, or minimum daily rate, for individual licensed assisted living facilities that are designated as disproportionate share facilities. To be designated, at least 80 percent of a facility’s residents must be enrolled in the Elderly Waiver (EW) program on Oct. 1, 2021.

Facilities must apply between Oct. 1-31, 2021 using the Disproportionate Share Facility Application form (DHS-8157-ENG) to receive this designation and the associated rate adjustment.

Individual disproportionate share facilities will receive a minimum daily rate of $119 for claims associated with EW participants who receive 24-hour customized living services at the facility. In calendar year 2022, the rate floor is effective July 1, 2022, to Dec. 31, 2022, assuming it receives federal approval.

The rate adjustment does not affect individual EW participants or Lead Agencies in any way.

  • Lead Agencies will calculate participants’ daily rates as usual using the Elderly Waiver Residential Services Rate Tool (RS Tool) in the MnCHOICES Support Plan. Lead Agencies do not need to account for the rate floor in any way.
  • The eligible facility receives the value of the minimum daily rate as a claims adjustment.
  • The value of the claims adjustment will not count against participants’ monthly case mix budgets.

More information is available in the Billing section of the Elderly Waiver (EW) and Alternative Care (AC) Program page in the Minnesota Health Care Programs (MHCP) Provider Manual.


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