Governor Tim Walz Drops Re-Election Bid
On January 5, Governor Tim Walz announced that he would not seek a third term as governor. Walz cited the overwhelming attention on allegations of fraud in Minnesota as a contributor in dropping out of the race, saying he will “let others worry about the election while [he] focuses on the work [against fraud].”
In Walz’s absence, Senator Amy Klobuchar has become one of the likely candidates for the DFL in the 2026 election. Senator Klobuchar has not yet commented on a decision to run.
For access to Walz’s official statement, click here.
Prepayment Review Update and Call to Action
We are aware there are significant concerns regarding the prepayment reviews, which started this week. When DHS indicated that they didn’t expect much of an impact, we understood that agencies would see minimal delays from what they experience today. What we have discovered is that they were referencing the legal requirement to process clean claims within 30 days and complex claims within 90 days. They did not take into consideration what their actual practice has been; therefore, providers are experiencing unexpected and significant delays in payments.
MHCA has been advocating for a pause with the Governor’s office and legislators, as well as informing DHS leaders about the disruption this will cause for clients who are in need of care and for caregivers, who are dependent on their paycheck.
What can you do to help? We need to have our voices heard and are asking you to consider advocating in the following ways:
• Send a message to the Governor’s office. You can complete an online form or send an email to constituent.services@state.mn.us; they are counting the messages coming in!
• Send an email to your state Representative and copy DFL House Leader Rep Stephenson (rep.zack.stephenson@house.mn.gov), GOP House Leader Rep Demuth (rep.lisa.demuth@house.mn.gov), and Anni Simons, MHCA lobbyist (asimons@fredgov.com).
• Email your state Senator and copy GOP Senate Leader Mark Johnson (sen.mark.johnson@mnsenate.gov), DFL Senate Leader Erin Murphy (sen.erin.murphy@mnsenate.gov), and Anni Simons (asimons@fredgov.com).
• If you have staff covered by SEIU, please send Kathy Messerli (kmesserli@mnhomecare.org) the date you will no longer have the funds to make payroll. We will share that with SEIU leadership so it can be used as leverage in our advocacy efforts.
Talking points for your messages:
• When DHS stated that we would experience minimal disruption, we understood that to mean there would only be a few claims delayed, unless they found significant fraud. In reality, there is a significant delay from what we generally experience (state percent of claims being held).
• These reimbursement delays will cause a financial hardship for our agency (Focus on the impact on your clients and whether you can continue providing services to them).
• Note that caregivers are counting on a paycheck and chare when you expect to no longer be able to make payroll.
• Call out that you have followed regulatory guidelines, including compliance with the non-funded EVV mandate (if true).
MHCA will keep you updated as we learn more.
UCare and Medica Updates
MHCA is aware that providers have many questions and are anxious about if, and when, they’ll receive payment from
UCare for 2025 services and for the few UCare
programs that still exist in 2026. MHCA is in communication with the company tasked with managing the UCare
assets and administering them. We are awaiting further information on the reimbursement timing and process and will update members when we have more information.
MHCA is also advocating for funds to be made available to home care agencies, to ensure client services continue. In the meantime, it would help MHCA’s advocacy efforts to know if you are awaiting claims payments from
UCare and for what year, the percent of your agency’s revenue that was from UCare in 2025, and when you expect to take further action (staff layoffs, client discharges,
etc). MHCA will aggregate this information, to ensure confidentiality. Please send that to pduncan@mnhomecare.org.
Minnesota Health Care Programs (MHCP) Must Grant Electronic Health Record Access to State Medical Review Team (SMRT)
During the 2025 Minnesota Legislative Session, the Minnesota Legislature enacted a provision requiring MHCP providers that use electronic medical records to grant SMRT access to those records to help streamline disability determinations. Key details and next steps regarding this change are linked here, in a newsletter from DHS.
New Tiered Minimum Wages for PCA and CFSS
New tiered minimum wages are planned for 2026 for Personal Care Assistance (PCA) Choice and Community First Services and Supports (CFSS) budget model workers.
Minnesota has not yet received federal approval; therefore, PCA Choice agencies and financial management services (FMS) providers are not required to implement the tiered schedule 2 wages until federal approval is granted.
MHCA will keep members updated if this change is approved.
Medica AccessAbility Solution Enhanced Availability Change for Special Needs BasicCare
Medica AccessAbility
Solution® Enhanced, Medica’s integrated Medicare and Medicaid plan, will no longer be available as a health plan option for Special Needs
BasicCare (SNBC) members in any county beginning January 1, 2026.
For further details, click here.
Minnesota Awarded $193 Million for First Year of Rural Health Transformation ProgramThe Minnesota Department of Health (MDH) will receive more than $193 million to support rural health care across the state. The funding will be used for strategic investments in new technology tools that bring care closer to home for rural residents; improve outcomes for Minnesotans with or at risk of developing cardiovascular disease, diabetes, and chronic kidney disease; and expand the rural health care workforce through education and training pathways. The funding will also enhance technology-enabled care delivery, including mobile and community-based services, strengthen provider partnerships, and improve the financial stability of rural providers through targeted investments in technology and data infrastructure. Additional details are available on MDH’s Rural Health Transformation Program website. MHCA will continue to engage with the state and keep you informed on how home care services can benefit from this funding.
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