New Limitations for Customized Living in Small Residential Homes

Posted on September 23, 2021 by Bobbie Guidry

Legislation that became effective July 1 directed the Minnesota Department of Human Services (DHS) to stop enrolling new customized living settings serving four or fewer people in single-family homes for individuals served through the Brain Injury (BI) and Community Access for Disability Inclusion (CADI) waivers.

This legislative change is for BI and CADI programs only. It does not impact Elderly Waiver customized living services or the customized living services license requirement updates related to the assisted living licensure changes.

Minnesota Health Care Programs (MHCP) considers customized living settings in operation on or before June 30 existing customized living settings. DHS may approve an exception to this legislative change when an existing customized living setting changes ownership at the same address. Customized living and 24-hour customized living are the payment program for qualifying individuals of the Medical Assistance waiver programs who reside in a qualifying residential setting or as defined by DHS:

• Customized living: An individualized package of regularly scheduled, health-related and supportive services provided to a person age 18 years or older who resides in a qualified setting.
• 24-hour customized living: Customized living services provided with 24-hour supervision.

Any provider of customized living is now also required to be licensed as assisted living.

LeadingAge Minnesota is encountering a growing number of members with small residential settings serving younger individuals receiving services through the BI and CADI Waiver programs due to the expansion of assisted living definitions and the changes to customized living provider requirements.