Policies related to establishing rates for home and community-based waiver services modified, and room and board rates for individuals receiving home and community-based services increased.

HF 381 modifies how Minnesota calculates rates for home and community-based waiver services and increases room and board rates for individuals receiving these services. It requires service providers to submit detailed data (like staffing hours, ratios, and transportation miles) to a central rates management system, with lead agencies required to approve rates within 30 business days or pay a 10% late penalty. The bill also creates an exception process for individuals with "exceptional needs" that cannot be met under standard rate formulas, allowing for alternative payment rates. These changes directly affect service providers, lead agencies (like county human services departments), and individuals receiving home and community-based care, effective July 1, 2025.