This bill proposes amendments to Minnesota Statutes, Section 256B.851, which governs payment rates for Community First Services and Supports (CFSS) and personal care assistance (PCA) services. The main changes include:

1. Updates to Base Wage Component Values:

   • Starting on January 1, 2026, and every two years thereafter, the Minnesota Commissioner of Human Services must calculate wage component values using updated median wage data from the Bureau of Labor Statistics.
   • Different base wages will be applied for personal care assistance services, enhanced rate services, and CFSS-related services.

2. Modifying Competitive Workforce Factors:

   • A competitive workforce factor will be applied to adjust the total wage component values.
   • The factor will be updated every two years to reflect wage differences between personal care aides and other similar occupations.
   • The change cannot exceed an increase or decrease of three percentage points per update.

3. Adjustments to Component Values:

   • Several cost components, such as employee benefits, administrative expenses, and worker training, will be updated.
   • Beginning January 1, 2026, implementation component values will be increased by 2 percentage points every two years until they reach 100%.

4. Worker Retention Components:

   • A retention factor will be applied based on hours worked in PCA or CFSS services.
   • Workers with more experience (measured in cumulative hours) will receive higher retention benefits, reaching up to 10.81% for those with over 10,000 cumulative hours.

In summary, the bill aims to increase payment rates for CFSS and PCA services by adjusting wages and cost components regularly, ensuring that pay keeps up with economic factors while also incentivizing workforce stability.