The federal government has required that every state have an Electronic Visit Verification (EVV) system in place by January 1, 2019 for personal care services and by January 1, 2023 of home health care services. The federal government will penalize each state that does not comply .25% on the federal match on Medical Assistance for these services increasing to 1% over time. This penalty is likely to be passed on to providers through rate reductions if imposed. The MHCA supported legislation during the 2017 legislative session to insure Minnesota’s compliance and to minimize the financial burden on providers and to prevent the disruption of care to clients. The expectation was that after gaining stakeholder input during 2017, that Governor Dayton would include in his 2018 supplemental budget an EVV proposal that would comply with the federal law, minimize provider costs, and prevent a disruption in client services. Unfortunately, the Governor did not include such a proposal in his budget. This is alarming because the primary option that the state now has to comply with federal law under existing appropriations is to mandate that providers use an EVV system that is not operated or funded by the state at the expense of the providers. The alternative is to not be compliant which would result in a penalty likely passed on in reduced provider rates. The MHCA is not supportive of the federal EVV mandate. However, given its reality and the potential negative impact that inaction on the state level will have on providers, the MHCA is actively engaging the legislature to address the EVV mandate in a way that will minimize the financial burden on providers and to prevent the disruption of care to clients.