The Minnesota Department of Human Services (DHS) has issued Bulletin 11-69-03, “2011 Minnesota Legislature authorizes rate changes for continuing care providers.” The bulletin confirms the effective dates for the changes will be September 1, 2011 unless otherwise noted. Rate changes will not be retroactive to July 1. To review a comprehensive multi-year review of the rate changes, please go to the Minnesota Department of Human Services On-going Rate Reduction for Continuing Care Programs document. For members looking at the CADI waiver rate lines, the program names for CADI for corporate foster care (CFC) and customized living (CL) should read as follows:

CADI Waiver (Except for Low Need Individuals in CFC and CL)
CADI Waiver (Low Need Individuals in CFC and CL)

We have confirmed this understanding with DHS, so if any members encounter challenges with the present language, which we hope will be updated, please contact me at pmanz@careproviders.org or 952-851-2484.

Providers with clients with a health plan should contact the following managed care organizations for information regarding the effective date and procedures for vendor rate reductions:

The highlights or lowlights (depending on whether your glass is half full or half empty) are:

A) 5% decrease in component rates for elderly waiver customized living

B) 1.5% decrease in rates for elderly waiver (except for customized living)

C) 10% decrease in payments for “low need” individuals in corporate foster care and customized living.

Please note that customized living is a “shorthand” way of saying class A or class F home care services being delivered in a housing with services establishment. DHS will be sending a list of the these “low need” individuals to lead agencies with the amount of rate reduction necessary to comply with the legislation. These low need individuals have “minimal needs in medication management, behavior management and instrumental activities of daily living (IADLs) such as meal preparation, laundry and shopping.”

D) 1.5 % decrease in rates for CADI waiver customized living, unless the recipient is a “low need” individual (see C above).

E) The IRS standard mileage rate was increased from 50 to 55 cents per mile beginning July 1, 2011. DHS will adjust the federal mileage rate on September 1, 2011 when the other changes are made.

DHS has created a web page for 2011 continuing care and other provider rate changes at http://www.dhs.state.mn.us/main/documents/dhs16_138858. Members are encouraged to contact staff with any questions.

Phil Manz
952.851.2484
pmanz@careproviders.org

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