Providers warn HF 4288 is needed to prevent closures after flat‑rate roll‑out

Representative Franson opened debate on House File 4288, which seeks to reinstate family residential services into the disability waiver rates framework. Franson said she has heard from providers across the state that the change to a flat, tiered daily rate will leave many providers unable to continue offering 24‑hour care.

Multiple providers and people receiving services testified at length. Linda Fairchild, a Wright County family residential service provider, told the committee HF 4288 would move family residential services back to the framework and cited an estimated 53% reduction for some homes under the flat rate. Provider Andrew Bond said his organization and others have already closed programs: "From September 2025 through February 2026, 55 homes have closed, eliminating 141 beds across Minnesota," and he said additional closures will follow unless the rate framework is restored. Several providers, including Katie Olsen and Carly Mannion, described the flat daily rates as often being less than minimum wage when accounting for 24‑hour care and warned that shifting people into corporate settings would raise system costs and reduce choice for the individuals served.

Testimony also included emotional appeals about the human toll: providers and residents described potential displacement, disrupted community ties, and risks to continuity and health. Committee members expressed concern, requested fiscal analysis of the rate exceptions and the number of providers who would qualify under the restored framework, and thanked testifiers. Representative Franson renewed her motion to lay HF 4288 over for possible inclusion so staff can continue work on cost and implementation questions.