State profile

Minnesota

The nation’s #2 HCBS-rebalanced state at 84.0% — with full overtime protections, SEIU-negotiated wage floors, permanent family caregiver payment rules, and paid sick leave and paid FMLA — demonstrating what comprehensive state policy looks like.

84.0%
HCBS share of LTSS spending — #2 nationally
13.7–16.2%
Nursing assistant vacancy rate (DEED)
138,920
Direct care workers statewide
$11.41
State minimum wage (all employers)
Category 1

The Economic Reality

#MetricMinnesotaStatus
1.1BLS median hourly wage (SOC 31-1120)$16.64/hr (mean)Public
1.2PHI median hourly wage (all DCW, ACS)$15.83/hrPublic
1.3Median annual earnings (DCW)$25,015Public
1.4MIT living wage (1 adult, 0 children)$22.05/hrPublic
1.5Wage gap (living wage minus BLS median)−$5.41/hr (~$11,253/yr)Derived
1.6State minimum wage (2026)$11.41 (all employers)Public
1.7Local minimum wage (highest city)$16.37/hr (Minneapolis)Public
1.8Low-income household rate (<200% FPL)32%Public
1.9Public assistance reliance (state-specific)Not published (32% proxy)Proxy
1.10Housing cost-burdened rate29%Public
1.11Uninsured rate (DCW)9%Public
1.12PHI Overall State Index ranking19/51 (Tier 2)Public
1.13Wage competitiveness vs. similar jobs−$3.71/hrPublic
1.14Genworth median home health aide rateNot separately publishedGap
1.15Genworth median NF semi-private rateNot separately publishedGap
1.16Family Care capitation PMPM (NH LOC)N/A (different program)Public
1.17Blended HCBS avg cost (all acuity)Not publishedGap
1.18NF private pay monthly avgNot separately publishedGap
1.19HCBS-to-NF cost ratio (state-specific)Not calculatedDerived
1.20Exemption aggregate savings (national est.)Same national figureEstimated
1.21Per-worker OT loss (50hr/wk worker)$4,373/yr (at national median)Derived
Category 2

The Workforce Crisis

#MetricMinnesotaStatus
2.1Headline caregiver vacancy rate13.7–16.2% (NA, nursing asst.)Public
2.2Open caregiver positionsNot separately publishedGap
2.3Available job seekers (entire labor market)Not separately publishedGap
2.4Annual turnover rate>40% (PCA/HHA)Public
2.5Individuals denied/delayed servicesNot separately publishedGap
2.6Agencies unable to staff all hoursNot separately publishedGap
2.7Nursing homes closed since 2016Not separately publishedGap
2.8NF beds empty due to staffingNot separately publishedGap
2.9Total direct care workers138,920Public
2.10New jobs projected (2022–2032)16,510Public
2.11Total openings incl. separations (2022–2032)234,300Public
2.12Population 75+ growth projection+20%+ residents 65+ by 2030Public
2.13Workforce demographics: % women81%Public
2.14Workforce demographics: % people of color38%Public
2.15Workforce demographics: % immigrants26%Public
2.16Health insurance offered by agenciesNot publishedGap
2.17Family caregivers providing 80%+ of all careYes (comparable)Public
2.18Unpaid caregiver hours/economic valueNot separately publishedGap
Category 3

Legal & Policy Framework

#MetricMinnesotaStatus
3.1State companionship/OT exemption statusNONE: Full OT coverage (48-hr threshold)Public
3.2State overtime threshold48 hours (all home care workers)Public
3.3Domestic Workers Bill of RightsNot enacted (adjacent protections exist)Public
3.4Paid sick leave lawYes (eff. 1/1/2024)Public
3.5Paid family/medical leaveYes (eff. 1/1/2026)Public
3.6Primary self-directed Medicaid programCDCS (within DD, BI, CAC, CADI, EW waivers)Public
3.7Self-directed program enrollmentCDCS: Not publicly reportedGap
3.8Primary managed LTC programMinnesota Senior Health Options (MSHO)Public
3.9Managed LTC enrollmentNot separately publishedGap
3.10Combined HCBS enrollmentNot compiled in single figurePartial
3.11HCBS share of LTSS spending84.0% (#2 nationally)Public
3.12HCBS waiting lists statusNot separately publishedGap
3.13Spouses as paid Medicaid caregiversYes — permanent policy (CDCS, PCA/CFSS)Public
3.14Parents of minors as paid caregiversYes — permanent (CDCS, PCA/CFSS)Public
3.15COVID family caregiver relaxations permanent?Yes — enacted permanently Oct 2024Public
3.16SDPC maximum wage (self-directed)$20/hr referenced (Ramsey Co.)Public
3.17OT rate cap in self-directed programsN/A (state OT law applies)Public
3.18IRIS/SDPC weekly hour capN/A (48hr OT threshold applies)Public
3.19Minimum fee schedule for HCBSSEIU contract: tiered ratesPublic
3.20Wage pass-through requirementYes — 72% of ARPA increases to workersPublic
3.21MCO contract wage floor provisionsNot separately publishedGap
3.22Union representation (home care workers)SEIU Healthcare MN (~35,000 workers)Public
Minnesota’s comprehensive approach

Minnesota demonstrates what comprehensive state policy looks like: full overtime coverage (48-hour threshold), permanent family caregiver payment rules (spouses and parents), SEIU-negotiated wage floors, 72% wage pass-through of ARPA increases, and new paid sick leave and paid FMLA laws. The state is also transitioning to Community First Services and Supports (CFSS) — a modernized self-directed program launched Oct 2024.

Category 4

The Geographic Divide

#MetricMinnesotaStatus
4.1Travel time/mileage reimbursement mandateSEIU contract covers driving time; CDCS = $0.63/miPublic
4.2Caregiver-to-senior ratio by countyNOT COMPILEDFOIA
4.3Counties with zero/limited home care agenciesNOT COMPILEDFOIA
4.4Rural broadband coverage (for EVV compliance)75% Greater MN; ~240K households withoutPartial
4.5EVV system & vendorHHAeXchange (free; hybrid)Public
4.6EVV offline/low-connectivity accommodationIVR telephone; no smart devices providedPublic
4.7EVV hard launch date (personal care)Sept 1, 2024 (enforcement)Public
4.8Rural vs. urban NF admission ratesNOT COMPILED at county levelFOIA
4.9Rural nursing home closures since 2016Not separately publishedGap
4.10Rural HCBS alternatives (adult day, ALF)Not separately publishedGap
4.11Projected NF bed shortage (statewide)Not separately publishedGap
Category 5

State Medicaid Toolkit & Reform Levers

#MetricMinnesotaStatus
5.1Medicaid rate-setting authority modelCounty-administered; managed care optionalPublic
5.2Minimum fee schedule exists?SEIU-negotiated rate floorsPublic
5.3Fee schedule codified in statute or budget?Legislative + contractPublic
5.4Wage pass-through % requirement72% (ARPA increases)Public
5.5State-level 80/20 compensation rule?NoPublic
5.6MCO contract cycle & next renewalVerify with DHSFOIA
5.7MCO workforce adequacy reporting required?Not separately publishedFOIA
5.8IRIS IBA formula inputs reflect market wages?N/A (different program)Public
5.9Premium pay structure for extended hours?N/A (48hr OT threshold applies)Public
5.10State domestic service OT exemption statusNo exemptionPublic
5.11Legislative path to eliminate state OT exemption?Already eliminatedPublic
5.12Federal Medicaid loss projection (10yr)Not separately publishedGap
5.13Annual new cost to state taxpayersNot separately publishedGap
5.14State-directed payment limit impact (eff. 2028)Not separately publishedPending
5.15Provider tax moratorium statusNot separately publishedGap
5.16NF staffing rule moratorium (10yr)AppliesPublic
5.17Work requirements effective dateDec 31, 2026 (childless adults)Public
Category 6

Federal FLSA & Companionship Exemption Status

#MetricMinnesotaStatus
6.12013 DOL rule status (as of March 2026)Technically in effect; enforcement suspended July 25, 2025 (FAB 2025-4)Public
6.2Proposed rescission rule published?Yes — July 2, 2025 (90 FR 28976)Public
6.3Final rescission rule published?No (as of March 2026)Monitor
6.4Chevron deference statusEliminated — Loper Bright v. Raimondo (2024)Public
6.5Private litigation still viable?Yes — 2013 rule provisions still invocable by private partiesPublic
6.6DOL estimated annual transfer (2013 RIA)$321.8M (medium scenario, 7% discount)Public
6.7Adjusted current estimate$500–700M annuallyEstimated
6.8GAO post-implementation findingHour caps, not cost absorption; pay did not increase; workforce declined 11.6%Public
6.9Familial caregiver % in self-directed programs50–78% nationally; CA IHSS >70%Public
6.10Disparate impact demographics85% female; 67% POC; 27% Black; 26% HispanicPublic
6.11CMS 80/20 Access Rule statusFinalized May 2024; faces likely rescission/non-enforcementPublic