Source: https://mn.gov/dhs/partners-and-providers/news-initiatives-reports-workgroups/long-term-services-and-supports/disability-waiver-rates-system/
Timestamp: 2019-04-21 00:21:35+00:00

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The Disability Waiver Rate System moved to a more centralized mode of operation in 2014. Please see Rate Management System in the Community-Based Services Manual for current policy information. DHS will continue to update this page in addition to the policy manual.
In 2007, the federal Centers for Medicare & Medicaid Services informed Minnesota that its four disability waivers were out of compliance with federal requirements for uniform rate determination methods and standards. The disability waivers are the Brain Injury (BI), Community Alternative Care (CAC), Community Alternative for Disabled Individuals (CADI) and Developmental Disabilities (DD) waivers.
In January 2014, DHS established what we now call the Disability Waiver Rate System.
Transfers the responsibility of setting service rates from counties and tribes to the state.
Restores compliance with federal requirements. Allows federal renewal of the Minnesota disability waivers.
Failure to comply with the federal requirements jeopardizes the services to 37,000 people who rely on disability waiver services.
Recognize a person's assessed need for particular components within each service.
How do I benefit from the system?
People benefit from increased choice of provider(s) and geographic areas where they receive services.
Lead agencies benefit from use of a web-based rate-setting calculator and are no longer required to negotiate rates with waiver providers.
Waiver providers benefit from greater predictability of rates when the needs of people who receive services increase or people live in different areas of the state and require the same services.
For more information about all component value factors in the Disability Waiver Rate System effective Jan. 1, 2019, see Disability waiver rate system component values effective Jan. 1, 2019 (PDF).
Effective July 1, 2018, DHS removed after-model rate adjustments from the Disability Waiver Rate System frameworks. This update was required by the federal Centers for Medicare & Medicaid Services. This update affected all rate frameworks except for Customized living and 24-hour customized living. For more information about this change, see the May 31, 2018, eList announcement.
The Legislature required DHS to study regional differences in waiver service provider costs across the state (Minn. Stat. §256B.4914, subd. 10f) . It requires DHS to update research once every five years and incorporate a component within the Disability Waiver Rate System frameworks that accounts for regional cost differences.
In 2017, DHS conducted an updated study on cost differences across the state. On Jan. 1, 2018, DHS will begin to use updated regional variance factors. For more information on the study and updated factors, see the 2018 Regional Variance Factors webpage.
The 2017 Legislature required DHS to update some cost factors in the Disability Waiver Rate System, effective Jan. 1, 2018 (Minn. Stat. §256B.4914, subd. 5 and 16) . The factors include: wages for Housing Access Coordination services, Program Plan Support values for unit-based services, Client Programming and Support values for unit-based services, and program-related expense values for Night Supervision, Personal Support, Companion, and Respite Services. Additionally, budget neutrality adjustment factors for residential and unit-based services are removed from Disability Waiver Rate System calculations beginning Jan. 1, 2018.
For more information on all component value factors in the Disability Waiver Rate System effective Jan. 1, 2018, see Disability Waiver Rate System Component Values Effective Jan. 1, 2018 (PDF).
The Legislature requires DHS to update the components used to calculate rates in the Disability Waiver Rate System (Minn. Stat. §256B.4914) . For a list of future legislatively required changes to the rate frameworks, see the table below. We will update this table as the Legislature authorizes changes to the Disability Waiver Rate System.
The Legislature requires DHS to update the Disability Waiver Rate System according to changes in Bureau of Labor Statistics wage data and the Consumer Price Index once every five years (Minn. Stat. §256B.4914, subd. 5h). DHS applied these increases to rate frameworks calculations effective July 1, 2017. These increases are only applied to framework rates. The impact of these changes varies by service. Updated rates will be calculated and authorized as service agreements renew.
The Legislature required DHS (Minn. Stat. §256B.4914, subd. 10i) to develop and implement a methodology used to determine shared staffing values for residential services. DHS developed this methodology with stakeholders. DHS implemented Rate Management System updates, worksheets and business rules on July 1, 2016. For information on determining residential shared staffing hours, see the Residential shared staffing quick reference guide.
The Legislature required DHS (Minn. Stat. §256B.4914, subd. 10b) to study regional differences in waiver service provider costs across the state. It also required DHS to use research findings to incorporate a component within the Disability Waiver Rate System frameworks that accounts for regional cost differences.
In 2014, DHS commissioned a study on cost differences across the state. The study found that staff wages, which are the predominant cost in providing HCBS services, varied significantly across the state. Researchers developed regional variance factors from this data. On Jan. 1, 2016, DHS began to use the regional variance factors in the Rate Management System. For more information on the study findings and resulting factors, see the Regional variance factors study report (PDF).
The Legislature required DHS (Minn. Stat. §256B.4914, subd. 10b) to study transportation data for day services. This study found that the average historical price for day training and habilitation daily transportation was $11.50 per day while the average price calculated by the pricing structure in statute is $14.50 per day. As a result of this research, the Rate Management System applied the legislated transportation values to full-day day training and habilitation frameworks as of Jan. 1, 2016.
The Legislature required DHS to apply a cost-of-living adjustment to historical and framework rates in the Rate Management System. DHS applied this 1 percent rate increase outside of rate framework calculations effective July 1, 2015.
The Legislature required DHS to apply a cost-of-living adjustment to historical and framework rates in the Rate Management System. DHS applied this 5 percent rate increase outside of rate framework calculations effective July 1, 2014.
The Legislature required DHS to apply a cost-of-living adjustment to historical and framework rates in the Rate Management System. DHS applied this 1 percent rate increase outside of rate framework calculations effective April 1, 2014.
What is a DWRS rate exception?
An exception is approval from DHS to authorize a rate other than the rate produced by the Rate Management System for people with exceptional needs that cannot be met by the Disability Waiver Rate System.
How do I submit an exception?
What tools exist to help?
The tools can help providers and lead agencies document costs that are above or not included in the RMS rate.
What is the process for post-banding rate exceptions?
Resubmitting exception requests in 2020 before the annual renewal.
During this process, DHS will provide technical assistance to lead agencies and providers. For more information about this process, please review the DWRS Exceptions Frequently Asked Questions page.
What if I still have questions about exceptions?
Please review the DWRS Exceptions Frequently Asked Questions page to find answers to common questions regarding exceptions. If you still have questions after reading the FAQ page, email DHS.
The Disability Waiver Rate System (DWRS) is a centralized system that calculates rates for home and community- based services provided under the disability waivers. The system is based on research completed on the average costs to deliver home and community based services in Minnesota.
Read more about the evaluation process and results on the Disability Waiver Rates System ongoing evaluation webpage.

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