Family residential, life sharing tiered rates FAQ

The services include: FRS Adult, Daily S5140 UC; FRS Adult Life Sharing, Daily S5140 UC U2; and FRS Child, Daily S5145 UC.

FRS and life sharing tiered rates are still pending federal approval. Once approved, implementation will be on a rolling basis, on or after Jan. 1, 2026.

Yes, the tiered rate methodology requires the person’s case mix. The MnCHOICES assessment determines the person’s case mix.

FRS and life sharing rates will no longer use a framework to calculate the daily rate. The rate will be determined based on the person’s case mix. Providers will not be required to submit a DHS 6790 to obtain a rate.

People who are eligible for a disability waiver who select FRS or life sharing for their residential service will obtain their case mix following their MnCHOICES assessment. The support plan will populate the FRS or life sharing rate indicated by the person’s case mix when the service is entered. Case managers and providers will communicate about the person’s needs and providers may request the person’s case mix along with the rate tier it falls into when the support plan is being developed.

If a person receives FRS or life sharing services for any portion of a day, providers may bill for that day. The provider will continue to follow the Billing for Waiver and Alternative Care (AC) Program section of the Minnesota Health Care Programs (MHCP) Provider Manual.

FRS and life sharing are not eligible for rate exceptions based on absence. FRS and life sharing providers may bill for days when they provide service, even if for less than a full day.

The new rate methodology is based on factors reflected in historic, banded family foster care rates. Please see the 2020 Family Foster Care rate study (PDF) for more information.

No, FRS and life sharing services are not eligible for an exception request. (See Minn. Stat. §256B.4914, subd. 14 (m) and subd. 19.)

At this time, children and youth who were in foster care placement before Sept. 30, 2021, continue to be eligible for the MAPCY supplemental difficulty of care (DOC) rate. If this applies, the DOC rate must be subtracted from the child FRS rate, as the waiver continues to be the final payer after other payment sources. The MAPCY adjustment would only apply to family FRS payments for children or youth who have been in continuous placement since before Sept. 30, 2021.

FRS and life sharing providers will not be required to submit cost reports for those services.

Submit additional questions or comments using the DSD Contact Form.