Using Medicaid to Cover Services for Elderly Persons in Residential Care Settings: State Policy Maker and Stakeholder Views in Six States. Adult Foster Homes

12/01/2003

Adult foster homes provide food, lodging, supervision, and household services in a small, family-like setting. They may also provide personal care and medication assistance. Some adult foster homes have to register as Housing-With-Services Establishments and some do not. Effective August 2, 1999, the state made a distinction between family and corporate adult foster care, and authorized new services names as follows:

  • Family Foster Care is a service or group of services provided in a residence of 1 to 5 clients that is licensed by the Department of Human Services under Rule 20321 or certified by the county. The residence must be the primary residence of the license holder and the license holder must be the primary caregiver. The setting is exempt from registration as a Housing with Services Establishment.

  • Corporate Foster Care is a service or group of services provided to 1 to 5 clients in a home- like setting with shared common spaces where the license holder is not the primary caregiver and/or the residence is not the primary residence of the license holder. Hired staff provide care. A few adult foster care "suites" have been created within larger apartment buildings. Most of the corporate foster care homes in Minnesota are designed specifically to serve those with memory loss.

    This setting is licensed by the Department of Human Services under Rule 20322 and is exempt from registration as a Housing with Services Establishment, unless 80 percent of the individuals served are 55 years of age or older and the provider offers one or more regularly scheduled health-related services or two or more regularly scheduled supportive services.

Any licensed adult foster care provider may provide family adult day care under their foster care license if all the recipients are 60 years and older, none of the recipients are seriously and persistently mentally ill or developmentally disabled and the combined number of people receiving adult foster care and adult day care does not exceed the number licensed for adult foster care.

Resident bedrooms must meet the following criteria: (1) A single occupancy bedroom must have at least 80 square feet of floor space with a 7-1/2 foot ceiling. A double occupancy room must have at least 120 square feet of floor space with a 7-1/2 foot ceiling.


  1. A Rule 203 license for 5 people is only available if all residents are at least 60 years old and none have a serious and persistent mental illness or a developmental disability; otherwise the setting must be licensed as a board and lodge by the Minnesota Department of Health. (Source: DHS Bulletin #00-25-4.)

  2. Ibid.

 

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