Minnesota suspends home care permits for people with disabilities and seniors

ST. PAUL, Minn. (Minnesota Now) – In an apparent response to the government's continued efforts to curb fraud, the state of Minnesota has ordered a moratorium on the issuance of new licenses for home and community-based services.

According to the Minnesota Department of Human Services (DHS), the agency will stop accepting applications for 245D licenses on January 1 and expects the suspension to last for one year. This license is required for businesses that provide “services to persons with disabilities or persons 65 years of age or older” in a community setting such as a home or group home. Most of the services are funded under the state's Medicaid Waiver Program, DHS said.

Suspension impacts Medicaid Waiver Program

In addition to suspending new licenses, the state has stopped approving new service lines for currently licensed providers and is revoking all applications that have been submitted but not yet approved.

245D applications grew by 283% in 5 years

An internal DHS memo obtained by Twin Cities news outlets indicates the decision was due to a significant increase in the number of applications “adversely impacting the agency's ability to provide necessary oversight and review.” According to the memo, the number of new license applications has increased by more than 283% over the past five years. Over the same period, the number of people receiving services under the state's waiver program increased by only about 25%.

The new policy allows exceptions to “ensure people across Minnesota have access to the services they need,” the document said. DHS plans to finalize and publish the process and criteria for granting exceptions by January 1, according to the memo.

Simultaneously decided to suspend licenses and crack down on fraud by the state

It goes on to say, “DHS recognizes that implementing a moratorium on a wide variety of licenses, such as 245D, will have far-reaching implications. During the 24-month grace period, DHS will focus its licensing efforts on reconnecting and reviewing providers that have not been evaluated in more than three years to re-establish compliance with federal waiver plans, and identifying post-suspension strategies to ensure a flow of new applicants that better aligns with the state as a whole.” Throughout the two-year period, DHS will also assess whether additional reforms are needed to improve licensing oversight and provide Congress with updates on these issues and community capacity needs. ”