Primary navigation

    Disability Waiver Rate System cost reporting

    All agencies that provide at least one service with a payment rate determined under the Disability Waiver Rate System (DWRS) are required to submit documentation of the costs of providing DWRS services at the request of the Department of Human Services. This requirement is commonly known as DWRS cost reporting.

    Notice about compensation thresholds

    During the 2023 session, the Legislature passed a new requirement that a minimum portion of DWRS revenues must be paid as compensation to direct care workers starting Jan. 1, 2025. The amount of revenues is different by service bucket, but aligns with rate framework assumptions (Minn. Stat. 256B.4914, subd. 10d):

    • Residential requires minimum compensation of 66% of DWRS revenues.
    • Day requires minimum compensation of 45% of DWRS revenues.
    • Unit-based requires minimum compensation of 60% of DWRS revenues.

    Compensation includes more than just wages, such as cost to the employer for benefits, taxes or other items of monetary value given to direct care workers. To be considered compensation, the benefit must be available for use at an employee’s discretion and on their own time.

    DHS will use the costs submitted by providers through DWRS cost reporting to collect cost data to confirm organizations are meeting the DWRS compensation threshold requirement. Tracking of the required compensation thresholds will begin during the 2026 DWRS cost reporting period . For more information on the thresholds, what is considered compensation, and how the policy will interact with the new CMS Access Rule, please see our webpage on the DWRS Compensation Thresholds Policy.

    back to top