This bill proposes modifications to the payment rates for Community First Services and Supports (CFSS) in Minnesota. Key changes include:

1. Base Wage Component Adjustments: Starting January 1, 2026, and every two years thereafter, the commissioner must update base wage component values based on Minnesota-specific median wages for relevant occupational codes published by the Bureau of Labor Statistics.

2. Total Wage Index Calculation: The commissioner must adjust base wages using a competitive workforce factor, which will be updated biennially to reflect labor market conditions. The factor cannot increase or decrease by more than three percentage points per update.

3. Updated Payment Components:

   • Various factors, including employee benefits, training, administrative costs, and program support, are outlined in determining reimbursement rates.
   • Introduction of a "worker retention component," which provides increased compensation based on cumulative hours worked in personal care services.

4. Biennial Adjustments to Competitive Workforce and Payment Components:

   • Implementation components will gradually increase every two years until they reach 100%.
   • Costs related to client programming and supports will be adjusted biennially based on changes in the Consumer Price Index.

These updates aim to ensure that reimbursement rates reflect current labor conditions, support worker retention, and adjust for economic changes over time.