Federal Review Slows 2026 Nursing Facility Rates: Guidance for Providers

Posted on November 17, 2025 by LeadingAge Minnesota

The implementation of the 2025 legislative changes and the need for approval by the Centers for Medicare and Medicaid Services (CMS) has delayed the publication of the January 1, 2026, nursing facility rate notices by the Minnesota Department of Human Services (DHS). DHS is waiting to see what CMS does and does not approve. 

DHS is waiting to issue rate notices until the end of November. At a minimum, the January 1, 2026 rate notices issued at the end of November will reflect the 2024 cost report, the PDPM transition and the operating rate caps, which do not require CMS approval. 

According to DHS, the nursing facility minimum wage rate add-on and the increase to the nursing home surcharge cannot be implemented without approval from CMS. Therefore, these two 2025 legislative changes are not expected to be on the November rate notices. 

In the meantime, if your minimum wage rate application is still under review by DHS, please make sure to continue working with the department to complete so that amount can be added to your facility’s rate when CMS approves the minimum wage funding. 

It is not known when CMS will approve the minimum wage mandate and the corresponding rate add-on, and approval of the nursing home surcharge is still in question. The specific dates of implementation for the minimum wage rule and associated rate increase will be determined upon approval by CMS. At this point, members should assume that the minimum wage requirements and increased surcharge will likely not be implemented on Jan. 1 and do not need to plan to implement them until the effective date is known. 

We’ve created talking points that providers may use with their residents and staff to communicate the implications of the CMS delay. To access these talking points, please click here.