NACAC | Adoption Subsidy

DHS Adoption Assistance Program Helpline (existing customers)
Helpline Hours 8:30 A.M. – 12 P.M. and 1 P.M. – 4 P.M.
Phone: 651-431-4656
Fax: 651-431-7491
E-mail: Adoption.Assistance@state.mn.us

Paulette Lonzo (policy questions)
Department of Human Services (DHS)
PO Box 64944
St. Paul, MN 55164-0944
Phone: 651-431-4716
Fax: 651-431-7491
E-mail: Paulette.Lonzo@state.mn.us

Josh Kroll
NACAC
970 Raymond Ave, Suite 106
St. Paul, MN 55114-1149
Phone: 651-644-3036 or 800-470-6665
Fax: 651-644-9848
E-mail: adoption.assistance@nacac.org

Adoption subsidies are available for children with special needs. Federal subsidies were created by Congress (through Public Law 96-272—the Adoption Assistance and Child Welfare Act of 1980) to encourage the adoption of special needs children and remove the financial disincentives to adoption for the families. Children may receive a federally funded subsidy under Title IV-E or a state-funded subsidy as per state guidelines. Below we have outlined information related to definitions of special needs, benefits available, and procedures in your state. Answers to select questions were made available by the Association of Administrators of the Interstate Compact on Adoption and Medical Assistance (AAICAMA) through the Child Welfare Information Gateway (www.childwelfare.gov). Profiles for each state’s subsidy program are available on our web site at www.nacac.org. If you have additional questions, please call the North American Council on Adoptable Children (NACAC) at 651-644-3036 or our subsidy help line at 800-470-6665, or e-mail us at adoption.assistance@nacac.org. If you have state-specific questions, please call your State Subsidy Contact Person or the NACAC Subsidy Representative (listed above) for more information.

Note: The following links will connect you to a booklet on Adoption Assistance distributed by the Minnesota Department of Human Services. The booklet is in the process of being updated. For questions about specific aspects of the Adoption Assistance Program or to verify information provided in the booklet, contact DHS’ Adoption Assistance Helpline (see contact information above).

1. What specific factors or conditions does your State consider to determine that a child cannot be placed with adoptive parents without providing financial assistance? ("What is your State definition of special needs?")

Note: When a child’s eligibility for adoption assistance is based upon the high risk of developing physical, mental, social, emotional, or behavioral disabilities, no payment will be made unless and until the potential disability manifests itself as documented by an appropriate professional and the Commissioner authorizes commencement of a payment by modifying the Adoption Assistance Agreement accordingly.

2. What are the eligibility criteria for the State-funded adoption assistance program?

If a special needs child is not eligible for Title IV-E adoption assistance, the child may be eligible for state-funded adoption assistance. To be eligible for state-funded adoption assistance, a child must meet the following criteria:

Refer to Minnesota’s definition of special needs above (Question 1) for the definition of characteristics or circumstances that make it difficult to provide the child an adoptive home without adoption assistance.The reasonable, but unsuccessful efforts to place the child for adoption without adoption assistance must include:(1) Registration of the child with the State Adoption Exchange, and(2) At least one additional special effort to locate an adoptive home, such as use of photolisting services, newsletters, or adoption exchange services.This requirement may be waived by the state adoption unit if an eligible child is being adopted by his/her relative or foster parents, or that child’s specific condition requires recruitment of a particular family able to care for him/her.

3. The maximum basic monthly adoption assistance maintenance payment in Minnesota is:

A monthly basic maintenance needs payment is available to assist in meeting the basic needs of the child, such as food, clothing, and shelter. Monthly basic maintenance payments for adoption assistance are made according to the following schedule:

Age	Rate
0-5	$247
6-11	$277
12-14	$307
15-21	$337

For ages 18-21, only if the Adoption Assistance Agreement is extended to these ages.

A supplemental adoption assistance payment is a payment in addition to the basic maintenance needs payment and is available when a child has a diagnosed physical, mental, social, emotional, or behavioral disability that requires care, supervision, and structure beyond that ordinarily provided in a family setting to children of the same age. The amount of payment for supplemental maintenance is based on the severity of the child’s needs and the effect of the child’s needs on the adoptive family.

Level I	$150
Level II	$275
Level III	$400
Level IV	$500

4. Specialized rates are based on the extraordinary needs of the child, and/or the additional parenting skill needed to raise the child. If Minnesota offers these rates, the criteria used to define them are as follows:

The placing agency social worker completes an individualized determination of the child’s needs and the effect of the child’s needs on the adoptive family to determine the supplemental level of the child. The following descriptions of each level guide this determination.

This child requires a structured environment with supervision by an adult caregiver. Mild to moderate assistance is required to supplement self-care capabilities.

The child with these problems requires a regimented daily schedule, assistance with routine performance and may be mildly to moderately retarded or passive/aggressive.

This child requires supervision by a caregiver that can provide direct and controlled management of behavior and environment. This child has the ability to feed, dress, and toilet self, but has limited ability to make appropriate decisions and will require ongoing moderate care and assistance.

The child with these problems requires excessive structure, guidance, and direction and requires motivational stimulation and skill development, and may be moderately to severely mentally retarded.

This child has only limited ability to care for self and requires care provided by a skilled adult caregiver at all times.

The severity of this child’s chronic or acute condition is exhibited in aggressive acting out, unsocialized withdrawal, or excessive regulation by adults, requiring a highly regimented and structured environment. This child may be severely to profoundly retarded.

This child requires total and entire care and has no self-help capacity or ability to perform basic life-sustaining tasks. Care must be provided by a trained and skilled caregiver.

This child’s severe and chronic problems are exhibited in behaviors dangerous to self or others, or the child has mental illness, profound retardation, or physical disabilities that require a strict, structured regimen for which a 24-hour out-of-home placement is the likely alternative.

5. Parents can receive payment or reimbursement for certain nonrecurring adoption expenses directly related to the finalization of an adoption. Below are the allowed expenses and the limit per child.

The reimbursement limit is $2,000 per child. To be reimbursed, costs must be reasonable, necessary, and directly related to the legal adoption of the child. Reimbursable costs include: agency adoption fees (including health and psychological exams); transportation, food, and lodging for child and adoptive parents necessary to complete the adoptive placement or the legal adoption process; court costs; replacement birth certificate fees; and fees for copies of the adoption decree.

A non-recurring adoption expense reimbursement agreement must be approved by DHS and executed prior to the finalization of the adoption. All children adopted with adoption assistance agreements from the state of Minnesota have non-recurring adoption expense reimbursement built into their adoption assistance agreement and it is not necessary to execute a separate agreement for these children.

International adoptions may be eligible if they meet Title IV-E eligibility guidelines for non-recurring adoption expense reimbursement. Children legally adopted in another country do not meet eligibility guidelines and are not eligible for this program.

In Minnesota, Medicaid is known as Medical Assistance. Enrollees obtain all their services directly from enrolled medical providers or from a health plan, which they choose when they enroll in the program. If the adoptive family has dependent coverage through private insurance, the family may be required to use the private insurance as the child’s primary insurance and Medical Assistance as secondary coverage. Medical Assistance may pay all or a portion of the family’s insurance co-pays for the child. Sometimes Medical Assistance will pay the premium for the other insurance. Families should contact the child’s Medical Assistance worker to further discuss these possibilities.

Questions about covered services for a particular child should be directed to the child’s assigned Medical Assistance worker in the child’s county of residence. If a family does not know who the Medical Assistance worker is for their child, the family should contact the county social service agency in the child’s county of residence and request that information.

The adoptive parent(s) must cooperate with the Medical Assistance program rules and procedures. Medical Assistance requires prior authorization for certain medical needs. Coverage of medical services will be limited to items provided for by Medical Assistance program rules.

General questions about Medical Assistance can be directed to the Minnesota Health Care Programs Helpdesk (651) 431-2670 (Twin Cities metro area) or (800) 657-3739 (outside Twin Cities metro area).

The following link is a basic list of covered health care services, as identified on the Minnesota Department of Human Services website:

7. Children who have federally funded (Title IV-E) subsidy are automatically eligible for Medicaid benefits. However, it is the state's decision whether state-funded (non-Title IV-E) children are eligible for Medicaid benefits inMinnesota. Below is information on the Medicaid benefits available for state-funded children.

The medical coverage for all children with an adoption assistance agreement is Medicaid (called Medical Assistance in Minnesota), regardless of whether the agreement is Title IV-E or state-funded. See response to Question 6 for more detailed information about Medical Assistance.

Some mental health services for children may be available through Medical Assistance or the family’s private insurance for the child. Families should contact their insurance provider for more information about covered mental health services.

Children’s Mental Health Services are administered through the county social service agency in the child’s county of residence and through the local Children’s Mental Health Collaboratives.

Children’s Mental Health Case Management is a program that is designed to assist severely emotionally disturbed children and their families in assessing the child’s mental health needs and identifying and accessing appropriate services. Families should contact the social service agency in the child’s county of residence to check on their child’s eligibility for Children’s Mental Health Case Management. For more information on Children’s Mental Health Services from the DHS website:

Children’s Mental Health Collaboratives were established in response to concerns that children with severe emotional disturbances or who are at risk of such disturbances often require services from multiple service systems. The Collaboratives use a wraparound service model to coordinate services for children’s needs. For more information about Children’s Mental Health Collaboratives:

9. Does your State provide additional finances or services for medical or therapeutic needs not covered under your State medical plan to children receiving adoption assistance?

Reimbursement is available for certain non-medical services and special costs required to meet the child’s special needs as documented in the child’s Adoption Assistance Certification and corresponding supporting documentation. When a child’s eligibility for adoption assistance is based upon the high risk of developing physical, mental, social, emotional, or behavioral disabilities, no reimbursement for non-medical services or special costs will be made unless and until the potential disability manifests itself as documented by an appropriate professional and the Commissioner authorizes reimbursement for non-medical services or special costs by modifying the Adoption Assistance Agreement accordingly.

Possible reimbursements are limited to those listed below. The Program has specific rules for each reimbursement, so, depending on an individual child’s needs and family’s situation, a child may or may not be eligible for all of the reimbursements listed.

Adoptive parents must contact the DHS Adoption Assistance Helpline (see the contact information under “Subsidy Contact Person” above) to receive pre-authorization for any of the reimbursement options listed above. Reimbursements are subject to Adoption Assistance Program rules and adoptive parent(s) may be required to apply for services through their county social service agency before receiving reimbursement from the Adoption Assistance Program for services. Eligibility for services from the county social service agency may be considered in authorizing approvals for reimbursement.

10. What types of post adoption services are available in your State and how do you find out more about them?

Minnesota Adoption Support and Preservation (MN ASAP) is Minnesota’s statewide program to provide adoption supports and services to families, focusing on families who have adopted a child who was previously under the guardianship of the Commissioner of Human Services. Besides adoptive families, MN ASAP also serves pre-adoptive families, kinship families, foster families, and county and private agency adoption staff. MN ASAP provides an information clearinghouse, including a Web site, quarterly newsletter, fact sheets, and “warm line”; adoptive parent support network, including experienced parent liaisons located regionally throughout the state and support groups; and training for adoptive parents and professionals.

Additionally, children who were formerly under the guardianship of the Commissioner of Human Services are eligible for post-adoption services through the Public/Private Adoption Initiative (PPAI). Nine licensed private agencies utilize grant contracts paid for through state funds to provide post-adoption services (such as training) and transitional support to qualifying children and families. For more information on the PPAI, see the following link:

Information about post-adoption services such as reimbursements for child care, respite care, and other non-medical services/special costs are described in the response to Question 9 above.

11. If the additional assistance (listed above in Questions #8 -10) is to cover specific services (e.g., counseling/mental health services, respite care, etc.), must these services be explicitly identified in the adoption assistance agreement?

No. Reimbursements for the non-medical services or special costs listed in Question 9 are available for all children whose eligibility for adoption assistance is based on the child’s disability or membership in a sibling group, provided that the adoptive parent initiates the request for reimbursement before obtaining services, meets the programmatic requirements, and receives pre-approval from the DHS Adoption Assistance Program. However, when a child’s eligibility for adoption assistance is based upon the high risk of developing physical, mental, social, emotional, or behavioral disabilities, no reimbursement for non-medical services or special costs will be made unless and until the potential disability manifests itself as documented by an appropriate professional and the Commissioner authorizes reimbursement for non-medical services or special costs by modifying the Adoption Assistance Agreement accordingly.

All adoptive families qualify for services through MN ASAP, although the program focuses on families who have adopted a child formerly under the guardianship of the Commissioner of Human Services.

Families who have adopted a child formerly under the guardianship of the Commissioner of Human Services are eligible for available services through the PPAI.

Refer to the responses to Questions 9 and 10 for more specific for more detailed information about eligibility and these services.

12. How are residential treatment costs covered (if at all) for adoptive families? What procedures must a family follow to receive these services?

The Adoption Assistance Program does not reimburse for the cost of residential treatment. Adoptive families may have coverage for residential treatment through their private insurance. Adoptive families may also seek residential treatment placement through the county social service agency in their child’s county of residence. The county, typically through Children’s Mental Health Services, makes independent assessments about who they will authorize for placement in residential treatment. It is preferable that families seek Children’s Mental Health Services through the county prior to the need to seek residential treatment services for their child.

If a child is placed in residential treatment through the county social service agency, the cost of care is paid for by the county. The county may assess the adoptive parents up to the amount of monthly adoption assistance payment to partially reimburse the county for the cost of residential treatment services. For children who have adoption assistance agreements with the state of Minnesota, state rules prohibit assessment of a parental fee based on the family's income. If parents pursue placement through the county, they are encouraged to contact their assigned county social worker for more information.

13. A deferred adoption assistance agreement is one in which the initial monthly maintenance amount is $0. Does Minnesota offer such agreements?

Yes. In Minnesota, a deferred adoption assistance agreement is typically referred to as a “high risk only” agreement. No monthly payments or reimbursements are made to the adoptive parent (with the exception of reimbursement for non-recurring adoption expenses) unless and until the potential disability manifests itself as documented by an appropriate professional and the Commissioner authorizes reimbursement for non-medical services or special costs by modifying the Adoption Assistance Agreement accordingly.

No. However, Minnesota financial assistance in the form of Relative Custody Assistance may be available to individuals who accept a court-ordered transfer of permanent legal and physical custody of their minor relative(s) after a determination that the child cannot return to the home of the parent has been made in juvenile court. For additional eligibility and programmatic information about Relative Custody Assistance, contact the county social service agency.

15. Who makes the final determination of a child's subsidy eligibility in Minnesota? What roles, if any, do workers and administrators at the county, district, or regional level play in eligibility determination and/or assistance negotiation?

The placing agency (either a county social service agency, a tribal social service agency, or a licensed, private adoption agency) is responsible for certifying the child as eligible for adoption assistance and discussing with the adoptive parents the need for adoption assistance. The agency completes the appropriate paperwork and submits it to the Adoption Assistance Program on behalf of the child and family. The final eligibility determination is made by the state and is approved and signed by an agent of the Commissioner.

16. Will Minnesota consider my family income to determine my child's eligibility for an adoption subsidy?

No income “means test” is to be applied. Assessment is based on the circumstances or condition of the child and the family's ability to provide for the child's special needs.

18. Do children adopted from private agencies in Minnesota receive the same subsidies as those children adopted from public agencies?

19. When my child turns 18, which benefits, if any, are available to our family?

All adoption assistance agreements terminate when the child reaches the age of 18. However, if the child has not completed a secondary education plan and is enrolled in a secondary education program as a full-time student or is incapable of self-sustaining employment because of a physical or mental disability upon which eligibility for the adoption assistance agreement was based, extension of the agreement to age 22 may be possible. Prior to the child’s 18th birthday, the DHS Adoption Assistance Program will send a letter to the adoptive parent(s), giving instructions on how to apply for extension of the agreement. Requests for extension of the agreement must be received by the Program prior to the end date of the agreement.

If an agreement is extended beyond the child’s 21st birthday, the funding will be from state funds only; eligibility for federal reimbursement terminates at age 21.

20. A child's adoption assistance agreement may be periodically reviewed by the state. What is the typical process used in Minnesota?

The adoption assistance agreement is reviewed annually on the anniversary date of the court decree. The DHS Adoption Assistance Program will forward an annual affidavit form to the adoptive parents, and they must complete the form, sign it before a notary, and return it within 30 days. Failure to do so may result in suspension of Medical Assistance.

21. Can adoption assistance agreements be modified if requested by adoptive parents?

A request for a change in the adoption assistance agreement can be made at any time if the child’s condition or circumstances change. Adoptive parents are directed to contact the Adoption Assistance Program to receive instructions about how to proceed with a modification request.

If a child whose eligibility for adoption assistance is based solely on upon the high risk of developing physical, mental, social, emotional, or behavioral disabilities develops such a disability, the adoption assistance agreement may be amended to include monthly payments and reimbursements for non-medical services or special costs. Contact the Adoption Assistance Program for details.

If the adoptive parent(s) of a child receiving adoption assistance dies, it may be possible for the adoption assistance agreement to be transferred to the child's new guardian. Contact the Adoption Assistance Program for more information about this possibility.

22. What are the exact steps a family must go through to access the fair hearing/appeal process in Minnesota?

Adoptive parents have the right to request a fair hearing any time they experience a denial, modification, or termination of the adoption assistance agreement. The request for fair hearing must be in writing within thirty days after receiving written notice of the contested action or decision from the Department, or within ninety days if the parents can show good cause why the request was not given within the thirty-day time limit. To appeal an agency decision, adoptive parents should submit a written request for a hearing to:

Minnesota Department of Human Services
Appeals Office
P.O. Box 64941
St. Paul, MN 55164-0941

23. Families may request a subsidy after the finalization of an adoption under certain circumstances. Below is the process by which families access a subsidy after finalization.

The family must request an adoption assistance agreement after the finalization of an adoption by making a request in writing to:

Adoption Assistance Program
Department of Human Services
444 Lafayette Road North
St. Paul, MN 55155-3831

The family’s letter should clearly indicate that they would like to request a fair hearing on behalf of their child and that the adoption has already finalized. The Adoption Assistance Program will issue a denial letter to the family. The letter will provide instructions about how to request a fair hearing.

Prior to the hearing, the family will need to gather information to demonstrate that the child was eligible for adoption assistance at the time the adoption was finalized. The agency that placed the child for adoption may assist the family in gathering the information needed for the hearing.

The Adoption Assistance Program is administered by the Minnesota Department of Human Services. County and tribal social service agencies and other licensed, private adoption agencies assist the Program with eligibility determinations and preparation of adoption assistance paperwork prior to finalization and, at the Program’s request, modification of the agreement post-finalization. After the adoption has finalized, an adoptive family’s primary contact regarding the adoption assistance agreement should be the Adoption Assistance Program at DHS.

The federal contribution to Title IV-E-eligible children is approximately 50.00% in Minnesota. This is known as the Federal Financial Participation (FFP) rate. The remaining cost of the program is funded entirely with state funds.

25. Below are other programs that may delineate Minnesota's adoption assistance program from others around the country.

If a county social service agency has made the adoptive placement for the child, the county social service agency responsible for placement retains financial responsibility for the child prior to finalization. The county may issue foster care payments to the adopting family prior to finalization in these cases.

Youth adopted as teenagers may qualify for an Educational Training Voucher, offered through the Department of Human Services. To apply, youth must be age 18 to 21 at the time they begin post-secondary school or program, be accepted into an accredited post-secondary program, and have experienced a county approved out-of-home placement after the age of 14. For more information, contact Claire Hill (651-296-4471) or use the DHS website: