August Public Communications - MARSH

Today, DHS released information via the MN–ITS Provider Private Letter regarding the new Family Adult Foster Care rate methodology. However, the announcement failed to acknowledge a critical point: federal approval is required before this change can take effect. Here is a link to that letter for ease of access.

Here’s what DHS stated:

“In 2023, the Minnesota Legislature required that DHS implement the new family adult foster care rate methodology on Jan. 1, 2026, or upon federal approval (Minnesota Statutes, 256B.4914, subdivision 19). In 2025, the Minnesota Legislature increased the rates that were identified in the 2020 study by 25.84%.”

Key Clarification for Providers:

The correct statutory language requires implementation on January 1, 2026, or upon federal approval, whichever is later.

This means the new methodology cannot move forward without CMS (federal) approval, regardless of state legislative action.

Until federal approval is secured, the new rate system remains proposed, not final.

Behind the Scenes: MARSH Advocacy:

Please be assured that MARSH continues to work diligently behind the scenes on legislative and federal advocacy. We have written a letter to legislators asking for a meeting. 

We have been in active conversation with David Ferleger, who has provided us with support, guidance, and reputable contacts to further address our concerns with DHS and the dismantling of the Family Residential Services (FRS) program through the proposed flat-rate system.

On July 17, 2012, Judge Frank appointed Mr. Ferleger as Independent Advisor and Monitor to ensure compliance with the Jensen Settlement Agreement, citing concerns about the state’s slow pace of implementation.

Mr. Ferleger is a nationally recognized civil rights attorney and experienced court monitor, having presented the plaintiffs’ case in the landmark Pennhurst case before the U.S. Supreme Court.

Shortly after his appointment, he discovered METO was operating without a license, leading Judge Frank in December 2013 to issue sanctions against DHS for this deficiency. (METO = Minnesota Extended Treatment Options program) 

In addition, MARSH is in the process of contacting Jennifer Boulanger, Deputy Director at CMS (Centers for Medicare & Medicaid Services), to ensure federal authorities are fully aware of the risks and implications of these proposed changes.

Our Commitment:

MARSH will continue to pursue every legislative and federal avenue until all resources and options are exhausted.

We understand the fear and uncertainty these changes create.

Our focus remains on protecting the people supported in every Family Residential Program and the providers who dedicate themselves to this work.

Your home is their home — and we will continue to fight for its integrity.

— Minnesota Association for Residential Service Homes (MARSH)