2026 Minnesota Legislative Session: Recap for Stakeholders
General bill
Creates a statewide Office of the Inspector General that operates independently from individual state agencies. This office will conduct inspections, evaluations, and investigations of state executive branch agencies and programs to identify fraud, make recommendations for changes to programs to prevent fraud and misuse, and protect the integrity of the use of public funds.
System Modernization Funding bill
Allocates funding for counties and the state to modernize the IT systems used to administer Minnesota’s social services and benefits.
Finance bill
Implements multiple provisions impacting Minnesota’s healthcare system and children and families services, including:
Amending 245D annual training requirements by granting a licensed provider of home and community-based services a 90-day grace period for its staff to complete certain annual training requirements. Effective August 1, 2026.
Authorizing MN-DHS to review cost reporting data submitted by providers for compliance with the cost reporting requirements applying to Disability Waiver, Elderly Waiver, and PCA/CFSS services, establishing timelines for providers to comply with cost reporting requirements, and specifying consequences for providers when the commissioner is unable to verify submitted data. Effective January 1, 2027.
Modifying the circumstances under which a 245D provider may temporarily suspend or terminate services for non-payment to conform to the standards that apply to assisted living facilities, which allow 60 days of nonpayment from a public source before service suspensions or terminations are permitted.
Finance and Program Integrity bill
Implements multiple provisions impacting our state’s human services system, including:
Implementing continuity of care requirements for residential disability, residential mental health, and home care services. Includes defining the responsibilities of the provider, lead agency and MN-DHS in instances when a provider experiences a serious operational event. Effective July 1, 2026.
Implementing new requirements for a provider to purchase a surety bond as a condition of initial enrollment, reenrollment, revalidation, reinstatement, or continued enrollment. Upon new enrollment, or if the provider's medical assistance revenue in the previous calendar year is less than or equal to $300,000, the provider must purchase a surety bond of $50,000. If the provider's medical assistance revenue in the previous calendar year is greater than $300,000, the provider must purchase a surety bond of $100,000. The surety bond must name the Department of Human Services as an obligee, must be purchased new annually, and must allow for recovery of costs and fees in pursuing a claim on the bond. This requirement does not apply if the provider currently maintains a surety bond under the requirements for the PCA, CFSS or Recuperative Care programs.
Clarifying MN-DHS authority to require a provider type to establish and maintain a compliance program.
Clarifying the process and timelines used by MN-DHS for conducting provider revalidations.
Allowing MN-DHS to implement an enrollment moratorium for high-risk providers, with a required exception process. Article 3, Section 22.
Requiring provider compliance training for providers of high-risk services. Providers enrolled before January 1, 2027 must complete the training by January 1, 2028.
Requiring enhanced prepayment review of at least 65 percent of all submitted fee-for-service medical assistance claims. Effective April 1, 2027.
Adding new payment withhold notification and administrative review requirements.
Allowing MN-DHS to use the remittance advice process as the notice to a provider when seeking monetary recovery for processed claims, with an allowed provider reconsideration request process.
Requiring MN-DHS to publish timely interpretive guidelines of changing statutes, waiver plan amendments, state or federal administrative rulings, or state or federal court decisions that affect policies or reimbursement for home and community-based services. Effective July 1, 2028.
Requiring MN-DHS to employ a team of certified MnCHOICE assessors that the commissioner may deploy at the commissioner’s discretion to perform assessments on a lead agency’s behalf. Effective July 1, 2027.
Establishing billing limits for Day Support Services of a maximum of 8 hours per day per recipient. Article 9, Section 30. Effective January 1, 2027 or upon federal approval, whichever is later.
Implementing monthly hourly limits (in place of current daily hourly limits) for Individualized Home Supports with Training. The new monthly service limit is 182.5 hours. Also removes the three consecutive hour cap for both Individualized Home Supports with Training and Individualized Home Supports with Family Training. Effective January 1, 2027 or upon federal approval, whichever is later.
Implementing a billing limit for waiver transportation of a maximum equal to 28 one-way trips per week per participant. Effective January 1, 2027, or upon federal approval, whichever is later.
Limiting administrative fees charged by providers and vendors to no more than six percent of the total cost of the services or purchased goods. This limit applies to the following services and other new market rate services as determined by MN-DHS: market rate chore services billed daily, transitional services, and transportation services. Article 9, Section 38. Effective July 1, 2027, or upon federal approval, whichever is later.
Modifying implementation details for Waiver Reimagine, by requiring information about a person’s total budget to be provided to the person at least 12 months prior to the date their services will be subject to the budget and requiring MN-DHS to establish a phased approach to implementing the two waiver structure with consultation from the Olmstead Implementation office. Effective the day following enactment.
Requiring MN-DHS to convene a waiver case management advisory working group. The purpose of the working group is to evaluate and make recommendations regarding the quality, workforce sustainability, accountability, and long-term stability of home and community-based waiver case management services. Report due September 1, 2027.
Directing MN-DHS to conduct a market rate study to evaluate the adequacy, sustainability, and equity of payment rates for specific home and community-based services under the home and community-based services waivers. The study must include, at a minimum, employment support services delivered in remote or virtual settings; 24-hour emergency assistance; assistive technology; environmental accessibility adaptations; chore services; transitional services; independent living skills training; and specialist services, including positive support services and orientation and mobility services. Report due February 15, 2027.
Implementing a MnChoices Redesign Working Group, charged with making recommendations to shift the responsibility and administration of conducting MnChoices assessments to the state. Report due September 1, 2027.
Expanding Electronic Visit Verification requirements to Adult Companion Services, Adult Day Services, ARMHS, ACT, EIDBI, ICS, NEMT, Recovery Peer Support, and waiver services reimbursed at an hourly or specified minute-based rate. Includes language allowing MN-DHS to establish implementation dates and schedules for system functions, and allowing MN-DHS to waive EVV requirements for specific service components and settings when application of EVV would be contrary to the goal of having the EVV system be administratively and financially reasonable for providers and designed to avoid disruption to service delivery or receipt. Includes a requirement for MN-DHS to develop, test, and implement systems changes necessary to integrate data collected through electronic visit verification systems with Minnesota's Medicaid Management Information System.
Please refer to this End of Session Press Release for more information.