Waiver Reimagine update: Delayed launch of Minnesota’s new disability waiver program

For years, DHS has been listening, learning and engaging with people across Minnesota to improve the experience of those who use disability waivers. What we heard shaped Waiver Reimagine, which is our effort to modernize disability waivers so they are simpler, more equitable and more person-centered.

Over the past few months, a number of challenges have emerged. At this time, we cannot effectively design, communicate and launch a new disability waiver program by Jan. 1, 2027, the date set by the Legislature. As soon as we have an updated timeline for implementing a new disability waiver program, we will let you know.

This change is due to several developments in recent months, including:

  • FEI Systems, a core vendor that supports the MnCHOICES platform and is foundational to the new portal and budget model, recently experienced a data breach. Because these components rely on that system, we need additional time to ensure the platforms we build are secure, stable and aligned.

  • We are implementing Governor Walz’s executive order on program integrity, strengthening fraud prevention and oversight across department programs. This has required realignment of staff capacity and careful balancing of priorities. Now we are assessing what is needed for a responsible and sustainable transition.

Given the impact on people, families, providers, counties and Tribal Nations, we are moving forward with great care.

Progress and plans

Despite the delayed launch, work continues on developing a new disability waiver program in Minnesota. Here’s the progress we’ve made and the work that is underway, including how your input continues to shape this work.

As you may know, we are implementing Waiver Reimagine in phases to ensure we introduce major system changes with care and stability.

Phase 2, currently underway, centers on four major changes:

  • Consolidating four disability waivers into two.

  • Developing consistent individual budgets that prioritize community-based supports.

  • Expanding self-direction.

  • Providing direct access to personal waiver information through a secure online portal.

Substantial work is happening across multiple areas.

Program design

We advanced the proposed waiver structure and service alignment and confirmed that eligibility and level-of-care requirements will remain unchanged. We are working diligently to determine how the program will operate from beginning to end. We are also preparing strategies to support a smooth transition.

Individual budget model

In partnership with the Human Services Research Institute (HSRI), we continue developing a fair, transparent and person-centered individual budget model. An expert panel of people with lived experience, families, providers, advocates, counties and Tribal Nations is providing practical guidance to ensure the model reflects real-life needs.

We have identified which services and supports will be paid for through a person’s individual budget and which will be covered in other ways. We will share this information with the Advisory Task Force on Waiver Reimagine and add it to our website soon. We have also been working on a budget exception process for people who need more services than their budget covers. We will engage with the task force to review and refine the draft exception process.

Federal and systems updates

We have drafted Minnesota’s updated federal waiver application and will release it for public comment once the remaining required data becomes available. We expect that to happen late summer 2026, with submission to the federal Centers for Medicare & Medicaid Services (CMS) to follow. We are preparing technical requirements, system design and business processes in parallel.

Engagement, communication and change readiness

We are strengthening engagement and change readiness efforts to support people, families, providers, counties and Tribal Nations. As part of this work, we have drafted a change readiness plan, communications plan and engagement plan and launched the Professional Insight Panel to expand engagement opportunities and reach.

Stay tuned and stay connected

While we have made progress, there is still much to figure out. Moving forward, you can expect regular updates as Waiver Reimagine continues to advance and we establish a new timeline.

To ensure consistent, accurate and equitable information-sharing while preserving staff capacity for the important work of Waiver Reimagine, we will not be accepting invitations to join meetings or events to provide updates about this initiative at this time. Instead, we will focus on broader update opportunities where all partners across the state receive the same information at the same time. These opportunities may include webinars, public briefings, newsletters and online resources that address frequent questions and summarize progress, key decisions and next steps. This approach promotes transparency, reduces confusion and supports a coordinated transition. We will provide details about these opportunities as the work progresses.

Subscribe to updates

Subscribe to email updates to receive announcements, resources and information about the new disability waiver website launching later this year.

Help shape implementation

Your voice remains essential. There will be meaningful opportunities to help shape how implementation unfolds.

Join an input panel to help inform training, tools and communications:

Use the public feedback form to share priorities and questions. While we cannot respond to individual submissions, your input will inform FAQs, training materials and future communications.