License requirement changes for customized living services providers

The license requirement for customized living services (CLS) will change effective Aug. 1, 2021. On Aug. 1, 2021, all registered housing with services establishments must have an assisted living facility license according to Minnesota Statutes, to provide what Minnesota law has historically described as “assisted living” services. This applies to the following Home and Community-Based Services (HCBS) waiver programs:

Elderly Waiver (EW)
Brain Injury (BI)
Community Access for Disability Inclusion (CADI)

Under the new law, each assisted living facility will have one single, integrated license that combines an assisted living resident’s housing and services. The Minnesota Department of Health (MDH) is issuing the new assisted living facility license.

This new licensure will require providers to enroll with Minnesota Health Care Programs (MHCP) or update their current enrollment records. Providers can use the Minnesota Provider Screening and Enrollment (MPSE) portal to review their enrollment records, submit enrollment applications and materials to MHCP, and check the status of enrollment submissions.

If you still have additional questions regarding your enrollment with MHCP for customized living services, email dhs_mhcp_provider_enrollment@state.mn.us, or call the Provider Call Center at 651-431-2700 or 800-366-5411.

Am I exempt from this licensure change?
The Minnesota Legislature passed language in the Health and Human Services Omnibus bill which was signed into law by Governor Walz on June 29, 2021, and found in Minnesota Session Laws, 2021, First Special Session, Chapter 7, Article 13, Section 60, that identifies settings that are exempt from the new assisted living facility license and can continue to deliver customized living services.

Providers who are exempt from the new assisted living facility requirement can continue to deliver customized living services if:
- They are licensed as a comprehensive home care provider under Minnesota Statutes, chapter 144A, and
- Are delivering services in settings exempted from assisted living facility licensure as defined in Minnesota Statute 144G.08, subd. 7 paragraphs 10-13 and outlined in Customized Living Services – Exempt from Assisted Living Facility Licensure – Provider Assurance Statement (DHS-8116-ENG) (PDF)
These settings must also comply with Minnesota Statutes, section 325F.772 If you meet the exemption requirement you must submit:
- A copy of comprehensive home care license
- A completed DHS-8116 (PDF) form
Providers who meet the exemption must submit both of the above to MHCP via the Minnesota Provider Screening and Enrollment (MPSE) portal or by faxing a copy to 651-431-7493:
If I’m not exempt from the licensure change, what do I need to do? Apply for your license.

If you plan to provide customized living services on or after Aug. 1, 2021, and you have not applied for the new assisted living facility license, you must apply for the license through the Minnesota Department of Health (MDH) before Aug. 1, 2021. Follow the information on the MDH Assisted Living Licensure Application Materials webpage.
Providers currently enrolled to provide customized living services:

Practice locations are already enrolled with MHCP
If all the practice locations that you will be providing customized living services from are currently enrolled with MHCP, you only need to submit a copy of your assisted living facility license by submitting it through the Minnesota Provider Screening and Enrollment (MPSE) portal or faxing a copy to 651-431-7493.

See the customized living services PDF for step-by-step instructions on how to upload your assisted living facility license in the MPSE portal.

You have practice location(s) not enrolled with MHCP
If you are currently enrolled with MHCP to provide customized living services, but you intend to provide customized living services at a practice location that is not enrolled with MHCP, you must enroll the location, along with submitting a copy of your assisted living facility license. Providers must enroll all practice locations providing customized living services.

Housing with services certificate holder who does not hold the comprehensive home care license
If you hold a housing with services certificate, and you do not hold a comprehensive home care license to provide customized Living services with MHCP, and you are planning to transition to the assisted living facility license to provide customized living services, you must enroll with MHCP as a customized living services provider.

See Home and Community-Based Services (HCBS) Programs Provider Enrollment for steps to enroll with MHCP as a customized living services provider.

In order to help customized living services providers who plan to transition to the new licensing requirement, DHS will accept a copy of the confirmation email you received from MDH to start your enrollment process, along with your enrollment materials until July 31, 2021. DHS will set up your record and hold your application until Sept. 30, 2021, to receive a copy of your actual assisted living facility license. After that date, DHS will deny the customized living services enrollment.

To complete your enrollment you will need to submit a copy of your license and pay the MHCP application fee if the fee was not paid to DHS at the time of the application submission. After July 31, 2021, all providers must obtain their license before submitting their enrollment application.
Providers not enrolled to provide customized living services: Enroll with MHCP
I want to end my enrollment to provide customized living services

If you are currently providing CLS, but do not wish to apply for the new assisted living facility license, and you are not delivering services in certain settings that are exempt from assisted living facility licensure,* you must complete and submit the Organization – MHCP Provider Profile Change Form DHS-3535A (PDF) to terminate your enrollment record with MHCP. You must notify MHCP members for whom you are currently providing services and their case managers if you will no longer be providing the services. See Current Providers NOT Transitioning to Assisted Living Facility Licensure (PDF) from the Minnesota Department of Health.

*See “Am I exempt from this licensure change” for more information.
What happens beginning Aug. 1, 2021?

Service authorizations
Beginning Aug. 1, 2021, providers providing customized living services with a new NPI or UMPI from what they were previously using must contact case managers to update the HCBS waiver service authorization.

Claims
MHCP will deny claims for customized living services with dates of services starting Aug. 1, 2021, for providers who do not have the required credentials to provide the services.

Once providers’ enrollment records are updated with MHCP, providers will be able to resume billing for services rendered by following the requirements in MHCP billing policy.
Resources
Customized Living Services Resources
- Assisted Living Licensure —Minnesota Department of Health website
- Assisted Living Licensure in Minnesota (PDF) Mar. 8, 2020, document that explains the new licensure and what changes will take place on Aug. 1, 2021.
- Assisted Living Licensure in Minnesota: Making the Transition (PDF) July 23, 2020, document that explains new requirements for assisted living licensure.
- Assisted Living Resources and Frequently Asked Questions (FAQs)—MDH website
- For questions about the assisted living facility licensure requirement, contact health.assistedliving@state.mn.us or 651-539-3049.
- For questions about the new provider standards for customized living providers serving people enrolled in Elderly Waiver (EW), contact DHS Aging and Adult Services Division at dhs.aasd.hcbs@state.mn.us
- For questions about new provider standards for customized living providers serving people enrolled in Brain Injury (BI) and Community Access for Disability Inclusion (CADI) waivers, contact DHS Disability Services Division at DSD.WaiverPolicy@state.mn.us
- For questions about enrollment for customized living providers, call MHCP Provider Call Center at 651-431-2700 or 800-366-5411.
- “New Assisted Living Licensing Requirement” provider memo sent Feb. 18, 2021
- “New License Required For Customized Living Services Providers – Action Needed” provider memo sent Apr. 1, 2021
Legal References
2020 Minnesota Statutes, chapter 144G (for the authority for the new assisted living facility licensure)

Minnesota Statutes, sections 144G.08–144G.9999 (Definitions and requirements)

Minnesota Rules, chapter 4659 (Rules governing assisted living facilities)

Minnesota Session Laws 2019, chapter 60, article 1, section 48 (Resident quality of care and outcomes improvement task force)