Long-term services and supports rates changes
Rate and budget changes on Jan. 1, 2027
DHS will implement the following rate and budget increases on Jan. 1, 2027.
Alternative Care (AC), Essential Community Supports (ECS) and Elderly Waiver (EW)
The following increases apply to AC, ECS and EW:
- 3.78% increase to AC and EW monthly case mix budget caps.
- 1.38% increase to ECS budget caps.
- 3.78% increase to consumer directed community supports (CDCS) budgets under AC and EW.
- 3.78% increase to EW customized living and 24-hour customized living daily and monthly limits. This change will happen on a rolling basis as lead agencies renew service plans throughout the year.
- 5.15% increase to home-delivered meals.
Home care nursing and home health services
The following increases apply to home care nursing and home health services:
- 3.24% increase to home health aide, skilled nursing, occupational therapy, physical therapy, respiratory therapy and speech therapy (market basket adjustment).
- 3.24% increase to home care nursing (market basket adjustment).
- 3.24% increase to Consumer Support Grant (CSG) home care nursing ratings.
Operating payment rate increases for ICF/DD providers
Effective Jan. 1, 2027, DHS will increase the operating payment rate floor for ICF/DD providers. The changes include operating payment rate floors of:
- $301.22 for Class A facilities.
- $346.14 for Class B facilities.
For facilities that are already at or exceed the rate floors stated above, DHS will not increase the operating payment rate. ICFs/DD may access the increased operating payment rates beginning Jan. 1, 2027.
MMIS automation process
The MMIS automation process is scheduled to run Dec. 15, 2026. DHS will provide additional information and instructions closer to that date on the MMIS automation process webpage.
Additional information
DHS will send information as we update rate- and budget-related eDocs, policy pages and instructions.