HF1953

Purpose of the Bill

The bill aims to update and adjust the calculation and administration of payment rates for Community First Services and Supports (CFSS) in Minnesota. These updates address wage determinations, competitive workforce factors, and other component values in the payment rate structure to ensure they reflect current economic conditions.

Main Provisions

1. Base Wage Component Values: The bill revises how base wage values for CFSS are determined, starting January 1, 2026, and updated biennially. The calculation utilizes Minnesota-specific median wages from the Occupational Handbook.

2. Enhanced Payment Rates: It details how enhanced payment rates for personal care assistance services are calculated by using a multiplier on the base wage.

3. Component Values and Workforce Factors: Introduces updates to competitive workforce factor adjustments, which are reviewed every two years to reflect updated wage data. A cap of three percentage points is set for increases or decreases in these factors.

4. Component Values Update Mechanism: The bill mandates an increase in implementation component values for CFSS by two percentage points biennially, with the goal of reaching 100 percent. It also requires adjustments in the client programming and support factor based on changes in the Consumer Price Index.

5. Worker Retention: A retention component is introduced based on cumulative hours worked by personal care assistants, which increases with more hours worked, aiming to incentivize worker retention.

Significant Changes to Existing Law

• Regular Adjustments: The bill establishes a regular, systematic review and adjustment process of wage component values and competitive workforce factors every two years, ensuring they are aligned with the latest available data.
• Component Value Caps: Limits changes in workforce factors to a maximum of three percentage points per biennial update, preventing dramatic fluctuations.
• Incremental Updates: It introduces staged increases in component values until they reach full value, to improve the cost structure progressively.

Relevant Terms

community first services and supports, CFSS, competitive workforce factor, personal care assistance, base wage component value, median wage, Occupational Handbook, wage index, implementation component, Consumer Price Index, payment rates.