Minnesota 245D License Readiness Under the Moratorium

Last updated: November 2026

Minnesota is not accepting new Chapter 245D home and community-based services (HCBS) license applications or requests to add services to existing 245D licenses; the Department of Human Services (DHS) moratorium took effect on January 1, 2026, with an anticipated end of December 31, 2027 (DHS 245D licensing page, page opened 2026-11-05). The one route DHS describes is an exception request submitted by a county, managed care organization or Tribal Nation, and a granted exception does not guarantee a license. Integral Healthcare Solutions (IHS) cannot lift the moratorium or obtain an exception; it drafts the policy set, staffing and facility documentation and a mock review for organizations that hold a 245D license, that a lead agency may name as a provider, or that must rebuild a canceled application, and the organization approves everything and handles every filing and contact.

What is the Minnesota 245D licensing moratorium?

Minnesota Statutes 245A.03, subdivision 7a (page opened 2026-11-05) says the commissioner must not accept an application from or issue an initial license, and must not add a new service to an existing license, when the commissioner determines that exceptional growth in applications for licensure or requests to add new services exceeds the determined need for service capacity. A temporary moratorium is effective for up to 24 months from the date the commissioner issues it.

DHS's December 1, 2025 letter to legislators (page opened 2026-11-05) cites that subdivision and Executive Order 25-10. DHS gave these reasons: licenses and applications grew faster than waiver participants, and DHS counted 2,549 active 245D licenses and 2,314 pending applications as of mid-November 2025.

Chapter 245D is the set of licensing standards. Minnesota Statutes 245D.03 (page opened 2026-11-05) says the commissioner regulates home and community-based services to persons with disabilities and persons age 65 and older under it, and that its standards govern basic and intensive support services.

What does the moratorium stop, and what does it leave alone?

Under the moratorium, the DHS 245D licensing page (page opened 2026-11-05) says DHS has stopped accepting new applications for 245D licenses, stopped adding new service lines to currently licensed providers, and canceled all submitted applications in the queue. The DHS exceptions FAQ (page opened 2026-11-05) covers the edge cases:

• Existing holder, new facility: no exception is needed if the service is already on the license, but DHS says adding a CFRS or CRS to a license (DHS's abbreviations) goes through the exception process.
• Acquisition or change of ownership: an exception is not required if licensed capacity and service scope do not increase, though a new license application may be. If they increase and a new 245D license is required, the exception process would be needed.
• Medicaid enrollment: the exception process is solely for issuing a license. The holder must still enroll with Minnesota Health Care Programs (MHCP) after approval.
• Canceled applications: unless an exception request was submitted by January 1, 2026, queued applications not yet assigned to a licensor were canceled (DHS refunds page, page opened 2026-11-05).

How does the exception route work?

The DHS exceptions page (Rev. 12/23/2025, page opened 2026-11-05) and the FAQ describe one sequence.

1. A lead agency or Tribal Nation selects one moratorium liaison. All requests go through that liaison; DHS says requests from anyone else will not be accepted.
2. The lead agency identifies a person-specific need that cannot be met within existing licensed capacity, or a regional need shared by several agencies, and names a potential provider. In most cases the form needs a specific service recipient.
3. DHS says the liaison should submit the request only if the agency supports it. DHS says an agency that does not believe the provider can meet the need should not submit one.
4. DHS decides in consultation with the agency. There is no appeal.
5. If DHS approves, it contacts the provider to submit an application or to add the service. The application follows the standard review and must meet all licensing requirements. DHS expects the exception process to take no more than 60 days and says application review should not take longer than 45 days, depending on the provider's responsiveness.

DHS states the limit: being granted an exception does not guarantee that a license will be issued, and the provider must still meet all existing license qualifications and requirements. Nothing in the sources we opened makes a new license obtainable by preparing documents alone.

Who still gets value from 245D readiness work during the moratorium?

• Existing holders. The DHS letter says DHS will focus on reviewing providers not evaluated in over three years. That is stated intent in a December 2025 letter, not a rule.
• Providers a lead agency may name. DHS says the agency should have identified a capable provider before it submits. In IHS's reading, drafted policies, staffing plans and facility documents may help an organization show a lead agency its capability; DHS does not say they affect an exception decision.
• Owners of canceled applications and buyers of existing providers, who need to know where the exception line falls.

What does 245D require of a licensed provider?

A readiness review maps these requirements, current as opened on 2026-11-05.

• Policies. Minnesota Statutes 245D.10 says a license holder must establish, enforce and maintain policies and procedures as required by chapter 245D, chapter 245A and other applicable law. The grievance policy must give an initial response within 14 calendar days of receipt for complaints that do not affect health and welfare, and complaints must be resolved within 30 calendar days or the license holder must document the reason for the delay and a plan for resolution.
• Notice. Termination notice is due at least 60 days ahead for intensive supports and services and 30 days ahead for all other services, apart from the state-operated case the section treats separately.
• Coordinator and manager. Minnesota Statutes 245D.081 says the designated coordinator must minimally have a baccalaureate degree in a field related to human services, education or health and one year of full-time direct care experience with persons with disabilities or persons age 65 and older, or equivalent work experience providing care or education to vulnerable adults or children; it lists other routes. The manager must minimally meet the coordinator's education and training requirements and have a minimum of three years of supervisory level experience in a program that provides care or education to vulnerable adults or children.
• Facility. Minnesota Statutes 245D.21 says a community residential setting or day service facility must be inspected by a fire marshal or their delegate within 12 months before initial licensure, and cited hazards must be corrected before a license is issued.

How IHS helps

IHS is a consulting firm. IHS compares your documents with the sections above, drafts the policy and procedure set, the coordinator and manager qualification files and the facility documentation for your administrator and clinicians to approve, then reviews the finished set as a licensor would and returns findings with drafted corrections. For a buyer or existing holder, IHS maps a planned change against DHS's published answers so counsel can see where an exception would apply.

You supply ownership and governing documents, the administrator, coordinator and manager, the service list, staffing and credentials, premises control and clinical sign-off. The limit is plain: a lead agency and DHS decide who gets an exception and a license, not IHS. IHS files nothing, and your organization handles every contact with DHS, a county liaison or a Tribal Nation. Legal interpretation goes to your counsel.

What to have ready

1. Your 245D services, sorted into basic and intensive supports (Minnesota Statutes 245D.03).
2. Grievance, suspension and termination policies with the timelines in Minnesota Statutes 245D.10.
3. Named coordinator and manager with degree, diploma or training records and experience dates (Minnesota Statutes 245D.081).
4. For a residential or day site, the fire marshal inspection date and report (Minnesota Statutes 245D.21).
5. For an existing holder, the services on your license and any planned additions (DHS exceptions FAQ).
6. For a canceled application, the application date and refund status (DHS refunds page).

To talk through where your organization stands, use the introductory call.

How does 245D licensing compare with what it is confused with?

What it costs

The DHS 245D licensing page (page opened 2026-11-05) lists a 4,200 dollar application fee. The DHS refunds page (page opened 2026-11-05) describes a refund of the 500 dollar fee submitted with an application, for applicants who will not receive a license because of the moratorium. The pages we reviewed do not reconcile the two figures. Verify current fees with DHS. IHS scopes each engagement after a free introductory call.

What this is not

• Not a way around the moratorium, and not a prediction that an exception will be granted.
• This page is not legal advice. IHS is a consulting firm, not a law firm.
• IHS files nothing. Your organization submits its own documents and handles its own contact with DHS and lead agencies.

Frequently asked questions

Can I apply for a new Minnesota 245D license now?

No. The DHS exceptions page says DHS will not accept any new 245D license applications or requests to add additional services to any existing 245D licenses. The only route DHS describes is an exception request from a lead agency or Tribal Nation. DHS exceptions page.

How long will the 245D moratorium last?

DHS says it went into effect on January 1, 2026, with an anticipated duration of 24 months, ending December 31, 2027. The statute allows up to 24 months from the date the commissioner issues it. Check the DHS page for changes. DHS 245D page.

Can my organization ask DHS for an exception directly?

No. DHS says exception requests submitted by anyone other than a 245D licensing moratorium liaison will not be accepted. DHS says anyone interested in a license must first contact the moratorium liaison in their county. DHS exceptions FAQ.

If an exception is granted, will DHS issue the license?

Not automatically. DHS says a granted exception does not guarantee a license, and the provider must still meet all existing license qualifications and requirements. DHS also says there is no appeal of the exception decision. DHS exceptions page.

I already hold a 245D license. Can I open a new facility?

DHS says a license holder that already has the service on its license does not need an exception to open a new facility, but adding a CFRS or CRS to a license goes through the exception process. A service the license lacks is blocked unless an exception is granted. DHS exceptions FAQ.

What happens if I buy another 245D provider?

DHS says that if the acquisition or change of ownership does not increase licensed capacity or service scope, a new license application may be required but an exception is not. If it adds capacity or services and requires a new 245D license, the exception process would be needed. DHS exceptions FAQ.

What happened to 245D applications submitted before the moratorium?

DHS says that unless an exception request for an existing application was submitted by January 1, 2026, queued applications not yet assigned to a licensor were canceled. Affected applicants are eligible for a refund of the 500 dollar application fee, and DHS's December 2025 letter said refunds would be available until December 31, 2026. DHS refunds page.

Do I still need Minnesota Health Care Programs enrollment after the license?

Yes. DHS says the exception process is solely for issuance of a license and the license holder must enroll with Minnesota Health Care Programs after the license is approved. This page does not cover that enrollment. DHS exceptions FAQ.