DHS Issues Instructions for Customized Living Providers Transitioning to Assisted Living Licensure

Posted on April 7, 2021 by Bobbie Guidry

In a letter to Customized Living providers dated April 1, DHS updated their previous guidance from February 2021. Providers need to consider and act on the following instructions that apply to their setting. Of particular concern is the intention of DHS to suspend payment for Customized Living services to a provider who has not provided evidence of either their AL License or their exemption. LeadingAge Minnesota is working to resolve issues that could arise if applications have been submitted but licenses are not yet available by Aug. 1.

For providers that will require an assisted living license: After receiving the assisted living facility license from MDH for each setting providing Customized Living Services, upload a copy of each license to the Minnesota Provider Screening and Enrollment (MPSE) online portal, or fax to 651-431-7493.

For providers who are delivering services in an exempt setting and do not require an assisted living facility license: DHS is in the process of creating a provider assurance statement which providers will need to complete and submit with their comprehensive home care license to Provider Eligibility and Compliance.

Providers who no longer want to provide customized living services: Notify current residents no later than May 31, 2021, that you will no longer provide the customized living service as required in Minnesota Statute, 144G.191, subd. 3(c) and work with residents and their case managers or care coordinators to transition them to an eligible provider. Also, notify Provider Eligibility and Compliance to end the service or terminate your enrollment record.

Providers who choose to stop providing customized living services are also to: submit an enrollment record request in the MPSE portal, or fax the completed HCBS Programs Service Request Form, DHS-6638 (PDF) to Provider Eligibility and Compliance at 651-431-7493.

Providers who choose to terminate their provider enrollment for all services: submit an enrollment record request in the MPSE portal, or fax the completed Organization – MHCP Provider Profile Change Form. DHS-3535A (PDF) to Provider Eligibility and Compliance at 651-431-7493.

Payment information
Starting Aug. 1, Provider Eligibility and Compliance will suspend reimbursement for customized living services until providers have submitted proof of either 1) required assisted living facility licensure, or 2) a comprehensive home care license and the applicable assurance statement form that verifies the provider is delivering services in an exempt setting, defined under Minnesota Statutes, 144G.08, subd. 7, paragraphs 11-13.

If there is a lapse in the provider’s license (an effective date after Aug. 1), DHS will not pay for services during the lapse. DHS will cover services on or after Aug. 1, with proof of license effective Aug. 1, even if proof of licensure is received after the effective date.