Self-Direction MN Updates: What You Need to Know for 2025 Self-direction Programs and Legislative Updates

As we move toward 2025, some important updates may affect your plan. We want to make sure you’re fully informed about these changes, and most importantly, reassure you that we will guide you through each step of the process. Here’s what you need to know:

1. Wage Floor Increase: What Does This Mean for You?

Starting January 1, 2025, the wage floor for caregivers will increase from $19.00 per hour to $20.00 per hour. This means caregivers will be paid at least $20 an hour.

We will automatically update this change for you. There’s no action needed on your end. You’ll see the updated wage in your upcoming 2025 payroll without needing to make any changes to your plan. We are committed to making this transition as smooth as possible for you.

2. Budget Adjustments to Support the Wage Increase

To support this wage increase, there will be adjustments made to CDCS (Consumer Directed Community Supports) and CSG (Consumer Support Grant) budgets:

  • CDCS budgets will increase by 4.53%.
  • CSG budgets will increase by 4.37%.

This means your budget will be adjusted to reflect the additional costs associated with the higher caregiver wages. Your county will automatically update your budget to align with these increases. We will keep you informed throughout this process to ensure that you know exactly how these changes will impact your plan.

3. Paid Parents of Minors and Paid Spouses: What’s Changing?

The wage increase will also apply to Paid Parents of Minors (PPOM) and Paid Spouses (PS) who provide direct care. The new maximum rate for 1:1 care will be $23.74 per hour with Paid Time Off (PTO).

However, please note that this rate increase is not automatic. If you are a Paid Parent or Paid Spouse, you will need to contact your lead agency to have this new rate approved. We understand that navigating this process can be complex, but rest assured, we will be here to help you every step of the way to ensure this transition goes smoothly.

4. Plan Rate Changes

For now, there will be no changes to PTO or workers’ compensation rates. These aspects of your plan will remain the same as they are now. The main changes focus on the wage floor increase and the corresponding budget adjustments to reflect that. However, there are some rate changes for this year to be aware of:

  • The new IRS mileage rate for 2025 is .70 cents per mile.
  • The new employer SUTA (State Unemployment Tax Act) rate for the 2025 calendar year will be 1.58%, up from the 2024 rate of 1.20%. As a result, the overall payroll tax rate will increase from 9.45% to 9.83%  (FICA 7.65%, FUTA .60%, and SUTA 1.58%) starting January 1, 2025.

How We’ll Guide You Through These Changes

We know that changes like these can feel overwhelming, but we want to reassure you that we are here to support you. From wage increases to budget adjustments and rate approvals for Paid Parents and Spouses, we will guide you through every step.

If you have any questions or concerns about how these changes will affect your plan, don’t hesitate to reach out. Whether it’s understanding your updated budget or ensuring your wage increase is applied correctly we are here to help you navigate these updates.

As always, we’ll keep you informed and make sure you have all the information you need to ensure a smooth transition into 2025. You can count on us to be there with clear instructions, support, and guidance to ensure that these updates work seamlessly for you.

Stay tuned for more updates, and if you have any questions along the way, we’re just a phone call or email away!

Questions?

Reach out to your specialist, and ask away! We are always here to help. Contact Us Here.

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