A 245D license is the license the Minnesota Department of Human Services (DHS) issues to providers of home and community-based services (HCBS) for people with disabilities and people age 65 and older. The rules are in Minn. Stat. chapter 245D, and the application process runs through chapter 245A, the general licensing statute. If your agency delivers waiver services such as respite, individualized home supports, community residential services, day support, or employment support, you need this license before you can enroll and bill.
The short version, as of September 2026: § 245D.03 lists which services need the license and sorts them into basic and intensive support services. Applying means submitting policies, controlling individuals, background studies, proof of provider training, and a fee, after which DHS has 90 working days to act on a complete application. But DHS is not accepting new applications right now. A temporary moratorium began January 1, 2026 and is expected to run through December 31, 2027.
This guide covers what the license is, who needs it, how the application works when it reopens, what the pause and the separate enrollment freeze mean, and what current license holders have to keep in order.
What is a 245D license?
Chapter 245D is Minnesota's set of standards for HCBS providers, covering waiver services that used to sit under several rule chapters. The license is issued by the DHS Licensing Division and is statewide: under § 245A.10, subd. 3, an applicant for a 245D license applies to provide services statewide rather than at a single site.
The chapter sets rules for service recipient rights (§ 245D.04), health services and medication (§ 245D.05), protection standards and incident reporting (§ 245D.06 and § 245D.061), service planning (§ 245D.07 and § 245D.071), staffing and training (§ 245D.09), records (§ 245D.095), and policies (§ 245D.11). Start with the 245D documentation checklist. For a plain-language explanation of the chapter itself, its history, and how it differs from a home care license, see what 245D is.
Basic support services vs intensive support services
§ 245D.03, subd. 1 divides licensed services into two categories. The category matters because intensive services carry additional duties for assessment, support planning, and staff orientation.
| Category | Statutory description | Examples |
|---|---|---|
| Basic support services | Assistance, supervision, and care necessary for health and welfare, not directed at training, treatment, habilitation, or rehabilitation | In-home and out-of-home respite, adult companion services, 24-hour emergency assistance and personal emergency response, night supervision, homemaker services, individual community living support, individualized home supports without training |
| Intensive support services | The same assistance and care plus services specifically directed toward training, habilitation, or rehabilitation | Positive support services, crisis respite, specialist services, individualized home supports with training or with family training, community residential services, family residential services, life sharing, day support, prevocational services, employment exploration, development, and support, integrated community supports |
A provider licensed for a basic service that wants to add an intensive one has to add the service line to the license. Under the current moratorium, DHS is not adding service lines either. The basic vs intensive comparison lays out how the planning, training, policy, and termination notice rules differ between the two categories.
Which waiver services require a 245D license?
The statute ties each service to specific waiver plans. As of September 2026, the list in § 245D.03, subd. 1 includes:
- Respite care, in-home and out-of-home, under the brain injury (BI), community alternative care (CAC), community access for disability inclusion (CADI), developmental disabilities (DD), and elderly waiver (EW) plans.
- Adult companion services under the elderly waiver plan.
- 24-hour emergency assistance and personal emergency response under the CADI and DD waivers.
- Night supervision and homemaker services under the BI, CAC, CADI, and DD waivers (homemaker also under EW).
- Individual community living support under § 256S.13.
- Individualized home supports without training, with training, and with family training under the BI, CAC, CADI, and DD waivers.
- Community residential services, family residential services, and life sharing under the BI, CAC, CADI, and DD waivers.
- Day support, prevocational, and day training and habilitation services.
- Employment exploration, employment development, and employment support services under the BI, CAC, CADI, and DD waivers.
- Integrated community supports under the BI and CADI waivers, and under CAC and DD since January 1, 2023.
One limit predates the temporary pause. § 245A.03, subd. 7 states that the commissioner shall not issue an initial license for a community residential setting licensed under chapter 245D, and that does not change when the moratorium ends.
How to apply for a 245D license
The steps below combine § 245A.04 with the DHS process, and apply when the moratorium ends or a lead agency exception is granted.
1. Complete the pre-application work
Start with the DHS pre-application worksheet and the HCBS Waiver and Alternative Care (AC) Provider Training 101. At least one owner or managerial official must complete the training and pass its competency test before a license is issued. Decide which services you are applying for; the license names each one.
2. Assemble the organization and its policies
§ 245A.04, subd. 1 requires the application to identify every controlling individual, name an authorized agent who can accept service for all of them, and include taxpayer identification numbers, secretary of state business registration, and organizational documents such as articles and bylaws. DHS also asks for an organizational chart. Chapter 245D adds a written policy set under § 245D.11 (health and welfare, emergency and incident procedures, data privacy, admission criteria) and requires a designated coordinator and designated manager who meet the qualifications in § 245D.081.
3. Initiate background studies
Every controlling individual and every person who will have direct contact with people served needs a background study under chapter 245C, submitted through NETStudy 2.0, and § 245A.04, subd. 1 requires documentation that studies have been initiated. Studies for direct support staff must be started before the person begins a position that allows direct contact.
4. Pay the application fee
As of January 1, 2026, the initial application fee for a 245D license under § 245A.10, subd. 3 is $4,200. The increase came from Laws of Minnesota 2025, 1st Special Session, chapter 9, article 10. Applications submitted before that date paid $500, which is the amount DHS is refunding for applications cancelled by the moratorium.
5. DHS review and the 90-working-day clock
Before issuing a license, § 245A.04, subd. 4 requires DHS to inspect the physical plant where applicable, review records and documents, observe the program in operation, and evaluate health, safety, and fire standards. Under subd. 7, "the commissioner shall act on the application within 90 working days after a complete application and any required reports have been received from other state agencies."
6. Enroll with Minnesota Health Care Programs
The license is not a billing credential. After licensure, the agency enrolls each service with Minnesota Health Care Programs (MHCP) through the Minnesota Provider Screening and Enrollment (MPSE) portal. The guide to starting a home care agency in Minnesota walks through enrollment.
The 2026-2027 pause on new 245D licenses
On December 2, 2025, DHS announced a temporary 245D licensing moratorium under § 245A.03, subd. 7a, which lets the commissioner pause licensing for up to 24 months when application growth exceeds service capacity needs, and under Executive Order 25-10. Effective January 1, 2026, DHS stopped accepting new applications for 245D licenses, stopped adding new service lines to existing licenses, and cancelled applications already in the queue, with fee refunds. The expected end date is December 31, 2027.
DHS gave two reasons: active 245D licenses had grown to nearly equal the number of pending applications, faster than the waiver population, and the agency could not clear the backlog while meeting its federal commitment to review every licensed 245D provider at least once every three years.
There is an exception process. A lead agency (a county or managed care organization) or a Tribal Nation responsible for a person's waiver case management can ask DHS for an exception when a person cannot otherwise access a needed service. An applicant granted an exception then goes through the standard review.
Separately, on January 27, 2026, DHS froze new Medicaid provider enrollment for 13 services, including four that are 245D services: individualized home supports, integrated community supports, night supervision, and adult companion services. In July 2026 DHS extended that pause for 12 categories through January 27, 2027. The Minnesota Revalidate 2026 guide explains the freeze and the revalidation that current providers must complete.
What existing 245D license holders must maintain
The moratorium does not lighten the load on current license holders; the triennial review commitment means every licensed provider will be visited. As of September 2026, a license holder must keep the following current:
| Requirement | Where it comes from |
|---|---|
| Annual nonrefundable license fee, tiered by the prior year's 245D revenue | § 245A.10, subd. 4 |
| Notice to DHS before changing the authorized agent, controlling individuals, business filings, program location, or tax ID | § 245A.04, subd. 7a |
| Written policies and procedures on health and welfare, incidents, data privacy, and admission | § 245D.11 |
| A qualified designated coordinator and designated manager | § 245D.081 |
| Staff orientation within 60 calendar days of hire, maltreatment training within 72 hours, and annual training | § 245D.09 |
| Background studies on all controlling individuals and direct contact staff | ch. 245C |
| Support plan addendum, assessments, and progress reviews on the statutory timelines | § 245D.07, § 245D.071 |
| Incident reports within 24 hours and emergency manual restraint reviews | § 245D.06, § 245D.061 |
| Service recipient records and personnel records | § 245D.095 |
The three companion guides go deeper: the 245D documentation checklist, 245D incident reporting requirements, and 245D staff training and orientation requirements.
What happens in a licensing review
A licensing review is a records review first. The licensor samples service recipient records for the support plan addendum and its dates, samples personnel files for orientation, training, and background studies, and reads the incident and restraint reports for the period. Under § 245A.04, subd. 4 the licensor can also observe the program in operation.
If the licensor finds a violation that does not present imminent danger, § 245A.06 allows a correction order that states the condition, the rule violated, and the time allowed to correct it. A license holder who disagrees can request reconsideration in writing within 20 calendar days of receiving the order. More serious or repeated findings can lead to a conditional license, fines, or suspension or revocation under § 245A.07.
The DHS audit preparation checklist describes a self-audit you can run before the licensor arrives.
How Trustora helps
Trustora is one platform for 245D, ARMHS, PCA/CFSS, EIDBI, and adult day providers, so an agency with several lines does not run separate systems. For 245D, the platform holds the service recipient record with the support plan addendum, assessments, and progress review dates tracked against the timelines in § 245D.07 and § 245D.071, and it stores personnel files with orientation, training, and background study dates so a licensor's sample can be pulled for any period.
Incident reports and emergency manual restraint reviews are logged with their 24-hour, 3-day, and 5-working-day steps, and the compliance engine raises gap-day alerts before a deadline passes. When a licensing review or revalidation request comes, the one-click DHS audit binder assembles records for a date range. See the platform overview or contact us about how your license and service lines map to it.