Provider requirements for competitive workforce factor (CWF) distribution reports

Minnesota service providers that receive revenue from the newly enacted competitive workforce factor (CWF) must prepare written distribution plans  before Dec. 31, 2020. All direct care staff employed by the organization must have access to the plan for at least one calendar year. Providers also must make their distribution plan available, upon request, to DHS. The DHS Disability Services Division at DHS will contact providers directly if their distribution plan is selected for review.

Which providers must create distribution plans?

If a provider receives revenue from the CWF, they must prepare a written distribution plan. Providers of Disability Waiver Rate System (DWRS) framework services must create distribution plans (with the exception of customized living and 24-hour customized living). However, if a customized living provider receives payment for other framework services, in addition to customized living, they must complete a distribution plan for those other service revenues.

What should a CWF distribution plan include?

Each distribution plan must include the following:

• Element 1: Description of the CWF
• Element 2: Identification of additional revenues received from the CWF
• Element 3: Description of how additional revenues will be used.

Element 1: Description of the CWF

Each distribution plan must describe what the intent of the new CWF is to their direct care staff. Providers may include their own language, but DHS has provided suggested language below:

“This distribution report communicates the amount and use of revenues received from the competitive workforce factor, in fulfillment of Minn. Stat. 256B.4914, subd. 10a. The competitive workforce factor was passed by the 2019 Minnesota Legislature to support direct care worker compensation for workers that provide Disability Waiver Rate System framework services.”

Element 2: Identification of additional revenues from the CWF

Each distribution plan must identify an estimated dollar amount for revenue received from the CWF for services delivered in calendar year 2021. Revenue estimates should:

• Include only revenue from DWRS framework services that include the CWF (not market rate, pre-determined rate, or other Medical Assistance services)
• Not include revenue received from DWRS rate exceptions.

Element 3: Description of how additional revenues will be used

Each distribution plan must describe the specific ways the provider will use the revenue from the CWF. Common examples may include:

1. Increasing or maintaining wages of direct care workers
2. Enhancing or maintaining health, and non-health, benefits of direct care workers
3. Supporting direct care workers during COVID-19 work disruptions.

The changes described in the distribution plan may have been implemented before the plan is made available to direct care workers.

Additional information

For more information about how the CWF affects rate calculations, see the 2020 waiver rate setting frameworks page.