Providers ask for procedural fixes, housing add‑on and EAA changes in multi‑part bill; counties raise concerns about penalties

Senator Erin Eke presented Senate File 401, a five‑part provider bill offered by ARM that combines procedural changes and rate tools intended to improve responsiveness and financial stability for disability‑waiver service providers.

ARM's senior director Sarah Grafton described the five provisions: establish a 30 business‑day deadline for lead agencies to process service authorizations (with a penalty mechanism in the bill), allow approved rate exceptions to remain in place if an individual's support team determines removing them would harm well‑being, require stakeholder consultation to refine rate‑exception request processes and forms, permit a negotiated monthly housing support add‑on up to $1,000 for individuals who cannot live with roommates, and direct DHS to seek a waiver from CMS to allow Environmental Accessibility Adaptation (EAA) funds to cover property damage. Grafton said delays in service authorizations were creating cash‑flow problems for providers and that the housing support add‑on addressed a gap when individuals live alone and housing support dollars do not cover rent and food alone.

Witnesses including Matt Freeman of the Minnesota Association of County Service Administrators (MACSA) and Mariam Osman (community advocate) testified. Freeman said counties shared interest in timelier service authorizations but raised concerns about the bill's penalty mechanism and county levy impacts; he urged collaborative problem‑solving, resource or technology improvements and process fixes rather than automatic penalties. Mariam Osman and others urged the housing add‑on and other provisions as necessary for individuals with higher support needs.

Senator Eke said the provisions are intended to have zero net cost to the state; committee members urged continued collaboration among providers, counties and DHS. The committee laid the bill over for possible omnibus inclusion.