Distribution Plan for Temporary Increase in PCA Service Rate:  

 Effective Dec 20th, 2020     

Recent Legislation in Minnesota has allowed for a temporary 8.4% increase for PCA direct support
services to respond to COVID-19 effective between Dec 1st, 2020 and Feb 7th, 2021.

 This represents a $1.50 increase per billable PCA hour reimbursed by the state to PCA agencies to cover the following items:

• Increase Wages, Salary, and Benefits of Direct Support Workers
• Increase in Employer paid FICA, Medicare, State and Federal Unemployment Taxes
• Increase in Worker’s Compensation Insurance Premiums

The remaining 80% of the increase will be used by the employer to furnish services and supplies to
comply with CDC guidance on sanitation and safety related to COVID-19.

The breakdown of how the increase will be applied to increase Direct Support worker’s compensation is
as follows:

• Hourly State Reimbursement Increase: $1.50/HR
• 80% of Reimbursement Increase: $1.20/HR
  
• Less FICA & Medicare Tax (7.65%): -$0.09/HR
  
• Less Minnesota Unemployment Tax (0.53%): -$0.01/HR
  
• Less Federal Unemployment Tax (0.60%): -$0.01/HR
  
• Less Workers Compensation Rate (1.58%): -$0.02/HR

TOTAL ADDITIONAL TO HOURLY PCA PAY RATE = $1.20 – $0.12 = $1.08 per hour worked.

The additional pay per PCA hour will be paid to employees with PCA hours worked between Dec 01, 2020 and February 07, 2021 as a lump sum payment to each employee on the first paycheck date with the pay period ending after the end of the enhanced PCA rate period, which will be on the paychecks
dated February 22nd, 2021.

*For example: An employee with 85 PCA Hours worked between 12/01/2019 and 02/07/2020 will
receive an additional payment (before taxes) of (85 x $1.08) = $91.80 on their 02/22/2021 paycheck.

This will apply regardless of whether the employee has any regular working hours for that pay period
or if they have terminated their employment prior to the additional wages being paid out.

For Questions Related to the Increase, see DHS contact information listed below:

DHS contact info

Mail

Minnesota Department of Human Services
Community Supports and Continuing Care for Older Adults
PCA Temporary Rate Increase
P.O. Box 64967
St. Paul, MN 55164-0967

Email

Email questions to dhs.ccarates@state.mn.us. DHS will direct the questions to the person who
can best provide an answer.

Phone

If you have questions, you can call the DSD Response Center at 651-431-4300. DHS will direct
the questions to the person who can best provide an answer.

Note: The telephone number listed is a voice number. TDD users may call the Minnesota Relay
at 711 or 800-627-3529. For the speech-to-speech relay, call 877-627-3848.