HF3654 Summary

• Establishes enrollment requirements for personal care assistance agencies including surety bonds ($50,000-$100,000 based on Medicaid revenue), fidelity bonds ($20,000), workers' compensation, and liability insurance.

• Requires personal care assistants and qualified professionals to notify the commissioner within 6 months and 30 days respectively of ceasing employment with a personal care assistance provider agency.

• Creates a new payment rate methodology for personal care assistance services and community first services and supports based on Minnesota-specific median wages (SOC code 39-9021 for personal care aides) with biennial adjustments and standard component values including employee benefits (4.56%), employer taxes (11.56%), and administrative expenses (13.5%).

• Mandates enrolled providers submit cost data at least once every five years and allows the commissioner to temporarily suspend payments for non-compliance; requires commissioner reports to the legislature by August 1, 2023, and August 1, 2026, assessing the rate methodology and its long-term impacts on wages, benefits, hours worked, and staff retention.

• Requires managed care plans to use fee-for-service assessment and billing processes for personal care assistance services and report annually on rate increases paid to provider agencies.