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The bridge before Medicaid

Minnesota's Alternative Care Program

Alternative Care (AC) is a Minnesota program for older adults who need a nursing-home level of care but are not yet financially eligible for Medical Assistance. It is meant for people who would run out of money and qualify for Medical Assistance within about 135 days of a nursing-home admission. AC offers a more limited set of community services and acts as a bridge before a person becomes eligible for Medical Assistance and the Elderly Waiver.

Alternative Care is a bridge, not the destination. It helps people get community services in the short window before they become eligible for Medical Assistance and the Elderly Waiver, which are the main, longer-term programs. If a family qualifies, it is worth starting early so care is not delayed while paperwork catches up.

What Alternative Care is

Alternative Care is a state-funded program administered by the Minnesota Department of Human Services and delivered through counties and Tribal agencies. It helps pay for home and community-based services for older Minnesotans who need nursing-home-level care but do not yet meet the financial rules for Medical Assistance.

The idea is to keep people in the community and out of nursing homes during the period just before they qualify for Medical Assistance, which often costs the state less and is what most families prefer.

Who qualifies

To be eligible for Alternative Care in Minnesota, a person generally must:

  • Be age 65 or older
  • Require a nursing-facility level of care, confirmed by a state assessment
  • Not currently be eligible for Medical Assistance, but be likely to qualify within about 135 days of entering a nursing home
  • Meet the program's asset rules (Alternative Care has its own limits, generally more generous than the strict Medical Assistance asset limit)

What it covers

Alternative Care covers many of the same community services as the Elderly Waiver, though the package is more limited. These can include home care, homemaker and chore services, adult day services, home-delivered meals, respite for family caregivers, and care coordination. Like the Elderly Waiver, it pays for services, not the rent and meals in an assisted living setting.

Does it cost anything?

Some participants pay a fee toward the cost of their Alternative Care services, based on their income and assets. Your case manager explains whether a fee applies in your situation and how it is calculated.

How it relates to the Elderly Waiver

Think of the two together. Alternative Care is the short-term bridge for people who are close to, but not yet on, Medical Assistance. The Elderly Waiver is the main, longer-term Medicaid program that helps pay for community and assisted living services once a person is eligible for Medical Assistance. As a person's finances change and they become eligible for Medical Assistance, a case manager can help them apply for the Elderly Waiver.

How to apply, step by step

  1. 1

    Contact your county or Tribal human services agency

    Or start with the Senior LinkAge Line (1-800-333-2433), Minnesota's free statewide help line for seniors, which can direct you to the right office.

  2. 2

    Request a long-term care consultation / assessment

    A trained assessor confirms whether your parent needs a nursing-facility level of care, which Alternative Care requires.

  3. 3

    Review your finances with the case manager

    They check whether you meet the Alternative Care asset rules and are likely to qualify for Medical Assistance within about 135 days of a nursing-home admission.

  4. 4

    Build a care plan and start services

    If approved, a case manager arranges community services and can help you apply for the Elderly Waiver if and when you become eligible for Medical Assistance.

Questions

Minnesota's Alternative Care Program, answered

What is the difference between Alternative Care and the Elderly Waiver?

Both help pay for community and assisted living services for people who need nursing-home-level care. Alternative Care is a state-funded bridge for people not yet eligible for Medical Assistance; the Elderly Waiver is the main, longer-term Medicaid program a person may apply for once Medical Assistance eligibility is established.

Who qualifies for Alternative Care in Minnesota?

Generally, Minnesotans 65 or older who need a nursing-facility level of care, are not yet on Medical Assistance, and would qualify for it within about 135 days of a nursing-home admission, and who meet the program's asset rules.

Does Alternative Care pay for assisted living room and board?

No. Like the Elderly Waiver, Alternative Care pays for care services, not the rent and meals. Families cover room and board privately or, if eligible, through separate programs like Housing Support and Minnesota Supplemental Aid.

Is there a cost to the family?

Some participants pay a fee toward their services based on income and assets. Your case manager explains whether a fee applies and how it is figured.

About this guide. Written by the CasperCare team as general education, not legal, financial, or medical advice. Program rules and dollar amounts change; confirm your situation with your county or Tribal human services agency, the Senior LinkAge Line (1-800-333-2433), or a qualified elder-law attorney. Figures verified for 2026.

Sources: MN DHS: Elderly Waiver & Alternative Care · Minnesota Board on Aging: Senior LinkAge Line