Aug. 20, 2026
Featured News
Nursing Home Rates Posted by DHS
On August 20, 2026 by Jeff Bostic
After months of delay due to late submission by DHS of the State Plan Amendment (SPA) to the Centers for Medicare and Medicaid Services (CMS), nursing home rate notices for January 1, 2026, were posted on Friday, Aug. 21 to the nursing facility provider portal.
Editor's Note: The original article, published Thursday, Aug. 20, has been updated to reflect rates being posted by DHS on Friday, Aug. 21.
These rates implement a number of changes approved by the 2025 Legislature, and the retroactive nature of the changes creates significant complications for providers, residents and employees. The new rates are retroactive to January 1, 2026. DHS will automatically reprocess claims in September to reflect the new rates, while providers will be responsible for settling up to these new rates with their private pay residents.
Here are the key aspects of the 2026 rates that members will see on their rate notice:
- The minimum wage rate increase (calculated for each facility based on 2025 data the provider submitted) will be effective retroactive to 1/1/26. It appears on the rate notice only on the total rates page as a single amount that is added to all case mix classes.
- The minimum wage requirements themselves will be effective 9/10/26, which is thirty days after the SPA was approved by CMS.
- That means, starting 9/10/26, nursing homes and contractors providing services in nursing homes need to pay all employees: $19.09/hr with higher requirements for:
- CNAs: $22.60/hr
- TMAs: $23.60/hr
- LPNs $27.12/hr
- These figures are somewhat higher than what the workforce standards board has announced due to a quirk in the state’s Paid Family and Medical Leave law, which does not allow for that tax on employees to reduce them below a minimum wage level.
- January 1, 2026 operating rates have been calculated based on the 2024 cost report information according to the usual Value-Based Reimbursement update schedule.
- Each component of the operating rate (direct care, other care related, other operating) is capped at an increase from 2025 rates of no more than the rate of inflation (3.22%).
- These caps are a new policy that reduces year-to-year increases in a way that undermines providers’ ability to make appropriate investments in in their employees and care for residents.
- The January 1, 2026, surcharge increase adopted by the state was approved by CMS, but only through September 30, 2026.
- As a result, starting 1/1/26, the rate paid to nursing homes to cover the surcharge will be $19.02, up from the current $8.86. That will be the case until 9/30/26, when it will revert to the previous level.
- The final page of the rate notice shows both a 1/1 rate and a 10/1 rate, the only difference being the removal of the surcharge. Providers should be aware that they will not be getting a 10/1 rate notice—the current notice shows what the rate will be starting that date.
The completion of rate notices after this unprecedented delay brings a form of resolution, but it now leads to significant implementation challenges ahead. The retroactive rate changes, upcoming September 10 wage requirements, and implications for private-pay residents create a compressed timeline and substantial administrative and financial demands for providers.
We have developed several resources to assist members with the challenges of implementing a greatly delayed rate change:
- Sample letter to private pay residents explaining the reason for retroactive billing
- Talking points for residents, families and employees about the retroactive rate change and the minimum wage requirements
- An updated nursing home workforce standards board web page that includes an FAQ about the new minimum wage standards
We are very disappointed by the mess that was created this year by DHS. The mismanagement of the rate updating and subsequent CMS approval has a significant impact on providers and the older adults and families you serve. If you have not received your rate notice from DHS, please contact Alicia Harrington.
Federal Court Dismisses Nursing Home Workforce Standards Board Lawsuit
On August 20, 2026 by Mark Schulz
On August 17, U.S. District Court Judge Nancy Brasel issued an Order dismissing the lawsuit that LeadingAge Minnesota, along with our Long-Term Care Imperative (LTCI) partner, filed in March 2026 challenging the Nursing Home Workforce Standards Board (NHWSB).
Our suit challenged the constitutionality of the 2023 Minnesota Nursing Home Workforce Standards Act (Act), and with it the validity of all rules adopted by the NHWSB. On March 11, we filed a Complaint and a Motion for Preliminary Injunction in the Minnesota U.S. District Court. In response, the State of Minnesota filed a motion to dismiss the case, with the support of SEIU Healthcare Minnesota & Iowa, which joined the suit for the purpose of submitting legal arguments in defense of the Workforce Standards Board.
We asserted four claims:
- that the Act violates due process by empowering private parties to regulate competitors,
- infringes First Amendment associational rights,
- restricts labor market competition in violation of the Sherman Antitrust Act,
- and conflicts with the National Labor Relations Act by establishing a parallel bargaining structure.
On May 15, our attorneys, along with counsel for the State and SEIU, appeared for a lengthy hearing at the federal courthouse in Minneapolis to present our respective arguments and answer questions from the court.
After taking time to consider the parties’ positions on the legal issues involved, Judge Brasel sided with the defendants and granted the State’s motion to dismiss our case.
We are disappointed with the court’s decision and respectfully disagree with its conclusions. We are carefully analyzing Judge Brasel’s Order, evaluating options including filing an appeal, and working with our legal team to determine the best path forward.
Please contact Mark Schulz if you have any questions.
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Education Solutions
New 5-Pack Webinar Bundle Makes CEUs More Flexible and Affordable
On August 20, 2026 by Sharon Hollister
LeadingAge Minnesota is making it easier to fit professional development—and continuing education—into your schedule with the new 5-Pack Webinar Bundle.
The bundle lets you choose any five webinars from a curated collection of more than 25 on-demand programs covering timely topics in behavioral and mental health, clinical practice, operations, regulatory compliance, workforce and leadership. Because every program is available on demand, you can focus on the topics most relevant to your work and complete them when it works for you.
And bundling your learning saves money. The 5-Pack Webinar Bundle is $275 for LeadingAge Minnesota members ($385 for prospective members) — a savings of $100 compared with purchasing five webinars individually.
Each webinar is eligible for one clock hour of continuing education and has been designed to meet CEU approval criteria for Minnesota BELTSS licensees. General certificates of attendance are also available.
Whether you're planning ahead for license renewal, exploring an emerging issue, or simply looking to strengthen your skills, the 5-Pack Webinar Bundle gives you the freedom to build professional development around your priorities—and your schedule.
Choose your five and start learning on your time. Click here to get started.
Questions? Contact Olivia Scott, Events and Education Coordinator at education@leadingagemn.org.