Effective Jan. 1, 2025, the 2023-2025 collective bargaining agreement between Service Employees International Union Healthcare Minnesota and Iowa (SEIU) and the state of Minnesota established minimum wages, also known as wage floors, based on direct support workers' experience delivering personal care assistance (PCA) and Community First Services and Supports (CFSS) services.
The hours of PCA or CFSS services a direct support worker has provided since July 1, 2017, determines the minimum wage floor for direct support workers in PCA Choice and the CFSS budget model. Direct support workers in PCA Choice and the budget model of CFSS must be paid at least the appropriate minimum wage on the tiered wage schedule starting Jan. 1, 2025.
| Total hours worked since July 1, 2017 | Wage floor, or minimum wage, effective Jan. 1, 2025 |
|---|---|
| 0 - 1000 | $20.00 |
| 1,001 – 2,000 | $20.50 |
| 2,001 – 6,000 | $21.00 |
| 6,001 – 10,000 | $21.70 |
| 10,001 + | $22.50 |
Reimbursement rates for PCA and CFSS services provided by a direct support worker will be increased based on the experience level of the specific worker providing those services. PCA and CFSS provider agencies must use the increase in the reimbursement rate for wages and wage-related costs for the direct support worker.
| Total hours worked since July 1, 2017 | Reimbursement rate percentage increases |
|---|---|
| 0 - 1000 | Base rate |
| 1,001 – 2,000 | 2.17% increase from base rate |
| 2,001 – 6,000 | 4.36% increase from base rate |
| 6,001 – 10,000 | 7.35% increase from base rate |
| 10,001 + | 10.81% increase from base rate |
Financial management services (FMS) and PCA and CFSS provider agencies can view which tier direct support workers are in by logging into MN–ITS and downloading the Tiered Wage Individual PCA list. Find instructions for how to access the list in MN-ITS in the MN-ITS User Manual Provider Lists section.
In March 2025, FMS, PCA and CFSS providers will start receiving notification letters in their MN–ITS mailboxes when a direct support worker changes tiers.
For the tiered rate reimbursement, PCA and CFSS agency providers must follow general MHCP billing policies and guidelines in the Billing Policy section when submitting claims to MHCP.
Reimbursement rates beyond the base rate will not increase until March 2025. DHS will automatically reprocess claims submitted between Jan. 1, 2025, and March 2025 to pay PCA and CFSS providers the appropriate tiered reimbursement beyond the base rate they already received for those claims.
It is important to submit claims with the appropriate usual and customary charge amount to receive the increase rate correctly.
We will send out more communication about changes for the CFSS budget model. Direct support workers in the budget model of CFSS must be paid at least the appropriate minimum wage on the tiered wage schedule starting Jan. 1, 2025.
