Overview
- Licensing of new adult day centers will be suspended from Feb. 1, 2026 through Jan. 31, 2028, with all pending applications canceled.
- The state will allow narrow exceptions through an approval process that requires county or tribal sign-off in coordination with managed care organizations.
- DHS points to a 43% increase in provider capacity over five years versus a 7% rise in Medicaid enrollment, leaving room for roughly 3,000 more people than currently served.
- Investigators are probing alleged kickbacks used to lure clients between providers, and DHS will shift licensing staff toward stronger oversight of existing centers.
- DHS reports recovering several hundred thousand dollars from adult day centers and referring more than 100 providers across Medicaid-funded programs to law enforcement, as lawmakers hold a fraud hearing featuring DHS leaders.