HF 3374
Introduction - 94th Legislature (2025 - 2026)
Posted on 02/17/2026 11:31 a.m.
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A bill for an act
relating to human services; modifying disability waiver rate system inflationary
adjustments; making conforming changes; amending Minnesota Statutes 2024,
section 256B.4914, by adding a subdivision; Minnesota Statutes 2025 Supplement,
sections 256B.092, subdivision 3b; 256B.49, subdivision 17a; 256B.4914,
subdivision 5b.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2025 Supplement, section 256B.092, subdivision 3b, is
amended to read:
Subd. 3b.
Service authorizations and service agreements.
(a) Recipients must be
screened and authorized for services according to the federally approved waiver application
and its subsequent amendments.
(b) The commissioner must require lead agency supervisors to review and accept all
service agreements entered by lead agency staff into the Medicaid management information
system (MMIS) prior to the commissioner's approval of the service agreement.
(c) For a service agreement with a proposed total authorized amount that exceeds the
total authorized amount in the recipient's prior service agreement by more than the value
of legislatively enacted rate increases, the commissioner must manually review and manually
approve the service agreement in the MMIS. For purposes of this paragraph, "prior service
agreement" means the service agreement that was in effect 12 months prior to the start date
of the new proposed service agreement.
(d) In a format prescribed by the commissioner, lead agencies must submit the following
information for all service agreements subject to the commissioner's approval in paragraph
(c):
(1) changes in the number of units authorized;
(2) new services authorized;
(3) changes in the values used to calculate service rates under section 256B.4914, except
for automatic adjustments required under section 256B.4914, subdivisions 5 deleted text begin anddeleted text end new text begin ,new text end 5bnew text begin , and
5fnew text end ;
(4) changes in the person's level of need that require an increase in the amount of services
authorized;
(5) documentation detailing why the previous amount of services is not sufficient to
meet the person's needs; and
(6) anticipated impact if the total service amount is not increased to the proposed amount.
(e) Except for rate increases required under section 256B.4914, subdivisions 5 deleted text begin anddeleted text end new text begin , new text end 5b,
new text begin and 5f, new text end and rate changes authorized by the 2025 legislature, the commissioner must not
approve service agreements under paragraph (c) that are not the result of either a documented
change in a person's assessed needs or documented evidence that the previous level of
service was insufficient to meet the person's assessed needs.
(f) This subdivision expires upon full implementation of waiver reimagine. The
commissioner must inform the revisor of statutes when waiver reimagine is fully
implemented.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2025 Supplement, section 256B.49, subdivision 17a, is amended
to read:
Subd. 17a.
Service authorizations and service agreements.
(a) Recipients must be
screened and authorized for services according to the federally approved waiver application
and its subsequent amendments.
(b) The commissioner must require lead agency supervisors to review and accept all
service agreements entered by lead agency staff into the Medicaid management information
system (MMIS) prior to the commissioner's approval of the service agreement.
(c) For a service agreement with a proposed total authorized amount that exceeds the
total authorized amount in the recipient's prior service agreement by more than the value
of legislatively enacted rate increases, the commissioner must manually review and manually
approve the service agreement in the MMIS. For purposes of this paragraph, "prior service
agreement" means the service agreement that was in effect 12 months prior to the start date
of the new proposed service agreement.
(d) In a format prescribed by the commissioner, lead agencies must submit the following
information for all service agreements subject to the commissioner's approval in paragraph
(c):
(1) changes in the number of units authorized;
(2) new services authorized;
(3) changes in the values used to calculate service rates under section 256B.4914, except
for automatic adjustments required under section 256B.4914, subdivisions 5 deleted text begin anddeleted text end new text begin ,new text end 5bnew text begin , and
5fnew text end ;
(4) changes in the person's level of need that require an increase in the amount of services
authorized;
(5) documentation detailing why the previous amount of services is not sufficient to
meet the person's needs; and
(6) anticipated impact if the total service amount is not increased to the proposed amount.
(e) Except for rate increases required under section 256B.4914, subdivisions 5 deleted text begin anddeleted text end new text begin ,new text end 5b,new text begin
and 5fnew text end and rate changes authorized by the 2025 legislature, the commissioner must not
approve service agreements under paragraph (c) that are not the result of either a documented
change in a person's assessed needs or documented evidence that the previous level of
service was insufficient to meet the person's assessed needs.
(f) This subdivision expires upon full implementation of waiver reimagine. The
commissioner must inform the revisor of statutes when waiver reimagine is fully
implemented.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2025 Supplement, section 256B.4914, subdivision 5b, is
amended to read:
Subd. 5b.
Standard component value adjustments.
new text begin (a) new text end The commissioner shall update
the base wage index under subdivision 5a; client and programming support, transportation,
and program facility cost component values as required in subdivisions 6 to 9; and the rates
identified in subdivision 19 for changes in the Consumer Price Index. If the result of this
update exceeds eight percent, the commissioner shall implement a change to the base wage
index, component values, and rates under subdivision 19 of eight percent. If the result of
this update is less than eight percent, the commissioner shall implement the full value of
the change. The commissioner shall adjust these values higher or lower, publish these
updated values, and load them into the rate management system on January 1, 2026, and
every two years thereafter, by the percentage change in the CPI-U from the date of the
previous update to the data available 24 months and one day prior to the scheduled update.
new text begin
(b) This subdivision expires upon the effective date of subdivision 5f.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision
to read:
new text begin Subd. 5f. new text end
new text begin Base wage index and standard component value adjustments. new text end
new text begin
Effective
January 1, 2028, or upon federal approval, whichever is later, the commissioner shall update
the base wage index under subdivision 5a; client programming support, transportation, and
program facility cost component values as required in subdivisions 6 to 9; and the rates
identified in subdivision 19 for changes in the Consumer Price Index. If the result of this
update exceeds an increase of four percent, the commissioner shall implement a change of
four percent to the base wage index, component values, and rates under subdivision 19. If
the result of this update is an increase of less than four but greater than zero percent, the
commissioner shall implement the full value of the change. If the result of this update is a
decrease, the commissioner shall implement no change. The commissioner shall adjust the
values, publish the updated values, and load the updated values into the rate management
system on January 1 of each year by the percentage change in the CPI-U from the date of
the previous update to the data available 24 months and one day prior to the scheduled
update.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end