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Minnesota Association of Residential Service Homes April 23, 2026

Act Now: Amend the Omnibus Bills to Move FRS Off the Flat Rate

The session ends May 18. The omnibus bills in both chambers are being assembled right now. We have two remaining opportunities to move Family Residential Services off the flat-rate system, and both require your voice today.

Why This Matters

The flat-rate payment system for FRS providers does not work. It does not account for the true cost of serving individuals with high-acuity needs who require 1:1 staffing, awake overnight coverage, and nursing-level support. When you calculate the hours required against the current rate, providers are being paid less than minimum wage to do this work.

Providers are closing their doors. Vulnerable adults who have lived in stable, community-based homes for years are being uprooted. These transitions cause significant behavioral and medical regression due to the stress and disruption of losing a familiar environment.

The alternatives for displaced residents are far more expensive for taxpayers. They will either occupy hospital beds at facilities like HCMC at vastly higher daily costs, or they will move into Community Residential Settings (CRS) that cost roughly three times what FRS providers were reimbursed under the original Disability Waiver Rate System (DWRS). The flat rate saves money on paper while shifting far greater costs to other parts of the system.

This is a lose-lose outcome for providers, residents, families, and taxpayers unless the goal is to needlessly spend taxpayer dollars to expand CRS capacity at the expense of small, community-based providers and the people they serve.

Action 1: Contact House Representatives

The House Human Services omnibus has moved to the House Ways and Means Committee. Ask your representative and the committee members to support an amendment that moves FRS providers off of the flat-rate reimbursement system.

  • 1Find your House representative using the Who Represents Me? lookup tool.
  • 2Contact members of the House Ways and Means Committee directly using the contact information below.
  • 3Use the template below or write your own message. Personal stories carry the most weight.

House Ways and Means Committee

Key members who also serve on the Human Services Committee include Rep. Jeff Backer, Rep. Mohamud Noor, and Rep. Joe Schomacker.

Rep. Cedrick Frazier
Co-Chair
rep.cedrick.frazier@house.mn.gov
Rep. Paul Torkelson
Co-Chair
rep.paul.torkelson@house.mn.gov
Rep. Esther Agbaje
Co-Vice Chair
rep.esther.agbaje@house.mn.gov
Rep. Peggy Scott
Co-Vice Chair
rep.peggy.scott@house.mn.gov
Rep. Patty Acomb
Member
rep.patty.acomb@house.mn.gov
Rep. Jeff Backer
Member
rep.jeff.backer@house.mn.gov
Rep. Dave Baker
Member
rep.dave.baker@house.mn.gov
Rep. Robert Bierman
Member
rep.robert.bierman@house.mn.gov
Rep. Aisha Gomez
Member
rep.aisha.gomez@house.mn.gov
Rep. Josh Heintzeman
Member
rep.josh.heintzeman@house.mn.gov
Rep. Spencer Igo
Member
rep.spencer.igo@house.mn.gov
Rep. Ginny Klevorn
Member
rep.ginny.klevorn@house.mn.gov
Rep. Erin Koegel
Member
rep.erin.koegel@house.mn.gov
Rep. Carlie Kotyza-Witthuhn
Member
rep.carlie.kotyza-witthuhn@house.mn.gov
Rep. Jon Koznick
Member
rep.jon.koznick@house.mn.gov
Rep. Ron Kresha
Member
rep.ron.kresha@house.mn.gov
Rep. Leon Lillie
Member
rep.leon.lillie@house.mn.gov
Rep. Jim Nash
Member
rep.jim.nash@house.mn.gov
Rep. Mohamud Noor
Member
rep.mohamud.noor@house.mn.gov
Rep. Paul Novotny
Member
rep.paul.novotny@house.mn.gov
Rep. Bjorn Olson
Member
rep.bjorn.olson@house.mn.gov
Rep. Dave Pinto
Member
rep.dave.pinto@house.mn.gov
Rep. Joe Schomacker
Member
rep.joe.schomacker@house.mn.gov
Rep. Chris Swedzinski
Member
rep.chris.swedzinski@house.mn.gov
Rep. Samantha Vang
Member
rep.samantha.vang@house.mn.gov
Rep. Nolan West
Member
rep.nolan.west@house.mn.gov
Rep. Cheryl Youakim
Member
rep.cheryl.youakim@house.mn.gov

Also contact the Speaker of the House:

Rep. Lisa Demuth
Speaker
rep.lisa.demuth@house.mn.gov

Action 2: Contact State Senators

The Senate omnibus is currently before the Senate Finance Committee. Ask your senator and the Finance Committee members to support amending A20 to move FRS providers off of the flat-rate system.

  • 1Find your state senator using the Who Represents Me? lookup tool.
  • 2Contact members of the Senate Finance Committee directly using the contact information below.
  • 3Use the template below or write your own message. Be specific about how this affects you, your residents, or someone you know.

Senate Finance Committee

Key members who also serve on the Human Services Committee include Sen. Zaynab Mohamed and Sen. Melissa Wiklund.

Sen. John Marty
Chair
Contact Form
Sen. Nick A. Frentz
Vice Chair
Contact Form
Sen. Eric R. Pratt
Ranking Minority
sen.eric.pratt@mnsenate.gov
Sen. Bobby Joe Champion
Member
sen.bobby.champion@mnsenate.gov
Sen. Rich Draheim
Member
sen.rich.draheim@mnsenate.gov
Sen. Jeff R. Howe
Member
Contact Form
Sen. John R. Jasinski
Member
Contact Form
Sen. Mark T. Johnson
Member
Contact Form
Sen. Zaynab Mohamed
Member
Contact Form
Sen. Erin P. Murphy
Member
Contact Form
Sen. Sandra L. Pappas
Member
Contact Form
Sen. Melissa H. Wiklund
Member
Contact Form

Sample Message Template

You are welcome to use this template as a starting point. Personalize it with your own experience. Messages from providers, direct care staff, family members, and community members all carry weight.

Template for Committee Letters

Opening: Dear [Representative/Senator] [Last Name], I am writing to ask you to support an amendment to the [House/Senate] omnibus bill that would move Family Residential Services (FRS) providers off of the current flat-rate reimbursement system.

The problem: The flat rate does not cover the actual cost of providing care to individuals with high-acuity needs who require 1:1 staffing, awake overnight coverage, and nursing-level support. When you calculate the hours required against the rate, providers are being paid less than minimum wage to do this work. Homes are closing as a result, and vulnerable adults are being displaced from the only stable environment many of them have known.

The cost to taxpayers: This is not a cost savings for the state. Displaced residents will end up in hospital beds at facilities like HCMC or in Community Residential Settings that cost roughly three times the rate FRS providers received under the original Disability Waiver Rate System. The flat rate saves money on paper while shifting far greater costs to other parts of the system.

Your story: [Add your personal connection. Are you a provider? A family member? A direct care professional? Be specific about how this affects you or someone you know.]

Closing: I respectfully ask that you support this amendment and help protect the individuals and providers who make community-based care possible in Minnesota. Thank you for your time and consideration.

[Your Name] | [Your City, MN] | [Your phone or email, optional]

Phone calls are also effective. The Senate switchboard number is (651) 296-0504 and the House switchboard number is (651) 296-2146. Ask to be connected to a specific legislator's office or leave a message.
The session ends May 18. These are the final opportunities to fix this before more providers close and more residents are displaced. The omnibus bills are moving through committee now. The committees need to hear from you today.

If Your Organization Is Facing Closure

Provider closure data is a central part of our legislative and legal documentation. If your organization has made or is considering closure decisions, please contact MARSH at admin@marshmn.org. Include your planned timeline, the number of individuals affected, and any relevant supporting documentation.

To learn more about MARSH and how to support this work, visit marshmn.org. Not yet a member? Learn about membership and join the coalition working to protect FRS providers across Minnesota. For questions, contact us at admin@marshmn.org.