SF3755

Purpose

• The bill changes how some Minnesota health and human services programs are run. It repeals housing stabilization services and strengthens rules around who can provide home- and community-based waiver services. It also clarifies the state agency’s authority to terminate or modify the medical assistance program and to use prepayment reviews. In addition, it requires background checks for certain people connected to waiver providers.

Main Provisions

• Repeal of housing stabilization services: The bill removes housing stabilization services from current law.
• Authority over the medical assistance program: The bill clarifies the commissioner's power to terminate or modify the medical assistance program.
• Prepayment review: The bill clarifies the commissioner's authority to implement prepayment review for medical assistance and requires a report on this authority and process.
• Statutory changes and additions: The bill proposes amendments to multiple statutes, including adding new subdivisions and altering existing ones related to waiver providers and housing stabilization services.
• Background checks for waiver providers: For providers of home- and community-based waiver services serving seniors and people with disabilities, as well as housing stabilization providers, the commissioner must conduct background studies on individuals who meet any of the following:
  • An owner with at least 5% ownership in the provider
  • An operator of the provider
  • An employee or volunteer who has direct contact with people receiving services
• Scope and timing of background checks: These background checks must occur before the person provides waiver services and as part of ongoing enrollment.
• Definitions and coverage for operators: The term “operator” includes managerial officers who oversee billing, management, or policies of the services provided.
• References to related programs: The changes reference federally approved home- and community-based waiver plans and housing stabilization services in related sections of law.

Significant Changes to Existing Law

• Expanded background check requirements: More people connected to waiver providers (owners, operators, and direct-contact staff/volunteers) must undergo background studies.
• Potential reduction of services: Housing stabilization services are repealed, which could change how some housing-related supports are delivered.
• Increased regulatory authority: The commissioner gains clearer authority to terminate or modify the medical assistance program and to implement prepayment review, with a required report on that process.
• Clarified definitions: The law expands the definition of “operator” to include individuals who oversee key service operations like billing and policies, broadening who must be checked.
• Revisions to multiple statutes: The bill makes targeted amendments and repeals across several sections of Minnesota’s statutes related to medical assistance, home- and community-based waivers, and housing stabilization.

Relevant Terms - housing stabilization services - housing stabilization providers - home- and community-based waiver (HCBS) plans - waivers (section 256B.4912) - medical assistance (MA) - commissioner (state health and human services agency leadership) - prepayment review - background studies / background checks - owner (5% ownership stake or more) - operator - managerial officer - direct contact - seniors and individuals with disabilities - waiver services - ongoing enrollment - related statutes: 256B.04, 256B.0658, 256L.03, 256B.4912, 256B.051, 245C.03, 245C.04, 245C.10