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HF 1095

Commissioner of human services directed to authorize indirect billing for individualized home supports.

2025-2026 Regular Session Introduced by Brion Curran and 3 co-sponsors

DHS would authorize indirect billing for individualized home supports, allowing providers to bill for indirect costs to expand capacity and access to services.

Author added Norris
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Bill Summary · HF 1095

Summary of HF 1095 (Minnesota, 2025-2026)

Title

Commissioner of Human Services directed to authorize indirect billing for individualized home supports.

Purpose and intent

The bill directs the Minnesota Department of Human Services (DHS) to authorize indirect billing for individualized home supports. The overarching goal appears to be facilitating broader utilization of individualized home support services by allowing providers to bill for indirect costs associated with delivering these supports, improving provider capacity, and potentially expanding access to services for individuals requiring these supports. The exact statutory language would specify how indirect costs are defined, what categories are billable, and under what conditions authorization is granted.

Key provisions (as implied by the title and standard legislative drafting practices)

  • Authorization by DHS: DHS must authorize indirect billing related to individualized home supports.
  • Scope of indirect costs: The bill would establish which indirect costs are eligible for reimbursement (e.g., administrative overhead, supervision, training, case management, non-direct service activities).
  • Eligibility and qualifications: Criteria providers must meet to bill indirect costs (e.g., service alignment with individualized home supports, compliance with program rules, auditable records).
  • Billing mechanics: How indirect costs are calculated and billed (e.g., a percentage of direct service costs, a per-hour indirect rate, or a blended rate). It may also specify documentation, rate approval, and submission timelines.
  • Rate setting and caps: Potential caps or maximum allowable indirect billing percentages; any process for rate adjustments or statewide consistency.
  • Compliance and oversight: Requirements for documentation, audits, reporting, and sanction provisions for non-compliance.
  • Effective date and transition: When authorization becomes effective and any transitional provisions for current providers.

Who is affected

  • Direct care providers: Agencies and individuals delivering individualized home supports who would be eligible to bill indirect costs.
  • Individuals receiving services: Persons who rely on individualized home supports may see access or continuity of services influenced by billing practices.
  • Minnesota DHS and program administrators: Responsible for implementing authorization, monitoring compliance, and adjusting fiscal models within program budgets.
  • Partner organizations: Any entities contracted to deliver, administer, or oversee individualized home supports.

Procedural and timeline considerations

  • Introduced and referred: The bill was introduced and referred to the Human Services Finance and Policy committee for consideration (as of February 19, 2025).
  • Author addition: An additional author (Norris) was added on February 27, 2025, with co-sponsors listed (Brion Curran, Matt Norris, Luke Frederick, Joe Schomacker).
  • Next steps: The bill would proceed through the committee process, potential amendments, floor votes in the House, and, if passed, would move to the Senate for consideration, subject to further legislative procedures and schedules.

Potential impacts and considerations

  • Access and capacity: Allowing indirect billing could enable providers to sustain operations and expand service capacity by better covering overhead and indirect activities.
  • Financial implications: Indirect billing policies affect payer reimbursements, provider financial planning, and overall program costs; rate setting will be critical to ensure sustainability.
  • Quality and oversight: Clear documentation, auditing, and compliance requirements are essential to prevent misuse and to ensure that indirect costs are reasonable and tied to service delivery.

If you would like, I can tailor this summary to include hypothetical examples of indirect cost calculations or compare how similar indirect billing mechanisms operate in other states.

Compiled from official sources — confirm details with the bill’s official record.

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