WEST ST. PAUL, Minn. — Several changes to Minnesota's disability waiver programs will take effect in 2026, following the 2025 legislative session. The Minnesota Legislature passed a biennial budget in June 2025 that included modifications to disability waiver services, rate structures, and assessment processes. The Minnesota Department of Human Services has indicated that implementation of many changes authorized for January 1, 2026, will actually occur in February 2026.
2026 Rate and Service Changes
The 2025 legislative session resulted in rate adjustments for home and community-based services. Rate updates for disability waiver services vary by service type and component, with different percentages applying to different services within the Disability Waiver Rate System.
Starting January 1, 2026, people who qualify for Individualized Home Supports with training may receive up to six hours per day but can bill no more than three consecutive hours at a time. This represents a change from previous billing structures.
Residential Services Rate Exceptions
Beginning July 1, 2026, limits will apply to rate exceptions for residential service providers. Rate exceptions, which provide enhanced pay for direct support professionals who serve people with high needs, will require more specific qualifying criteria under the new structure.
Family residential services will transition to a tiered-rate service effective January 1, 2026. The Disability Waiver Rate System framework components reflect this change, moving family residential services from framework services to tiered rates.
Assessment Process Modifications
The 2025 legislative session modified the MnCHOICES assessment process to reduce burden for people whose needs remain stable. Instead of a written signature, individuals may verbally confirm agreement with the assessment. The Minnesota Department of Human Services has indicated that implementation of many 2025 waiver changes will occur in February 2026.
People who are older than 21 years of age and under 65 years of age may attest that they have unchanged needs from the most recent prior assessment or reassessment for up to two consecutive reassessments. County and Tribal human services organizations must offer a full assessment annually and document that informed choice was offered.
The person or person's legal representative must attest, verbally or through alternative communications, that information provided in the previous assessment or reassessment remains accurate and applicable and that no changes in circumstances have occurred requiring changes from the most recent assessment or reassessment.
Assisted Living Facility Regulations
Starting January 1, 2026, assisted-living facilities cannot end a resident's contract because the resident switched from private to public funding. This provision addresses concerns about residents losing housing when transitioning to Medicaid waiver services.
The legislation also specifies that facilities may not coerce a resident to become an Elderly Waiver recipient, and home and community-based service providers may not require a person to be under guardianship to continue services.
Brain Injury Waiver Renewal
The Minnesota Department of Human Services will submit the Brain Injury Waiver renewal application to the Centers for Medicare & Medicaid Services with an effective date of April 1, 2026. The renewal is part of the five-year renewal process required to continue the BI Waiver program.
The Department accepted public comments on the BI Waiver application through November 7, 2025. The application includes updates to service definitions, provider qualifications, and quality improvement methods aligned with federal requirements.
Waiver Reimagine Timeline Update
The Waiver Reimagine initiative has experienced delays beyond its original implementation timeline. Legislative discussions and budget negotiations in 2025 have extended the implementation timeline, with reports indicating a target date of January 1, 2028, though official confirmation of this specific date is not readily available in public DHS documentation. The delay provides additional time for the Department to work with the Waiver Reimagine Advisory Committee and stakeholders to address concerns about the proposed budget methodology and service structure.
Waiver Reimagine aims to simplify Minnesota's four disability waivers—Developmental Disabilities, Community Access for Disability Inclusion, Brain Injury, and Community Alternative Care—into two waivers based on living arrangement rather than diagnosis. The initiative includes development of an individual budget methodology intended to provide more choice and control over services.
Long-Term Services and Supports Advisory Council
The 2025 legislation created a Long-Term Services and Supports Advisory Council tasked with identifying cost savings within disability waiver programs. The council will examine service delivery models, rate structures, and program efficiency to inform future policy decisions.
This council operates separately from the Waiver Reimagine Advisory Committee, which focuses specifically on the waiver consolidation initiative. The Long-Term Services and Supports Advisory Council addresses broader system sustainability questions.
Budget Context
The 2025 legislative session occurred during a challenging budget environment. The February 2025 forecast projected a $456 million surplus for fiscal years 2026-2027 but a $6 billion deficit for fiscal years 2028-2029, requiring legislators to make difficult decisions about funding priorities.
The biennial budget for fiscal years 2026-2027 totals $66 billion. The human services portion includes reduced funding for certain disability waiver services while maintaining core service access for approximately 63,000 Minnesotans who rely on waiver programs monthly.
Provider and Workforce Implications
Healthcare and human services providers must adapt to new rate methodologies and budget reductions taking effect in 2026. The direct support professional workforce continues to face recruitment and retention challenges across Minnesota.
The rate adjustments and budget constraints may affect provider capacity to serve individuals with complex needs. Service providers should review rate structures, assess financial sustainability, and communicate with counties and Tribal human services organizations about service delivery.
Looking Forward
Minnesota's disability waiver system continues to evolve through legislative action, federal requirements, and stakeholder input. The changes taking effect in 2026 represent adjustments to balance program sustainability with service access for people with disabilities.
Individuals receiving waiver services should stay informed about changes affecting their services and budgets. County and Tribal human services organizations provide information about how legislative changes affect individual service plans.
The Waiver Reimagine Advisory Committee continues to meet regularly to provide input on the proposed waiver consolidation. Committee meetings are open to the public and provide opportunities for community members to learn about and comment on proposed changes.
Sources:
Minnesota Council on Disability. (2025). Legislative Updates. https://www.disability.state.mn.us/about-our-public-policy/legislative-updates/
Minnesota Department of Human Services. (2025). DSD eList: Jan. 1, 2026, DWRS component values updates. https://www.dhs.state.mn.us/
Minnesota Department of Human Services. (2025). DSD eList: Waiver Reimagine timeline update. https://www.dhs.state.mn.us/
Minnesota House of Representatives. (2025). House passes human services budget bill. Session Daily. https://www.house.mn.gov/sessiondaily/
Holt Law. (2025). MN Leg update 2025. https://djholtlaw.com/mn-leg-update-2025/
BrightPath provides person-centered, data-driven waiver services throughout Minnesota. Our qualified staff deliver individualized home supports, 24-hour emergency assistance, community residential services, crisis respite and intensive support services under CADI, DD, BI and CAC waivers.