Minnesota Home Care License: Basic vs. Comprehensive

Starting a home care agency in Minnesota? One of the first big choices is the type of license to get.

There are two: Basic or Comprehensive.

The names sound confusing. But the difference is simple:

• A Basic license is mostly for non-medical home care.
• A Comprehensive license lets you do non-medical care plus nursing and other medical services.

The license you pick changes a lot:

• What services you can offer
• Whether you need a Registered Nurse (RN)
• How much your application costs
• Whether you can become Medicare-certified later

Want the full step-by-step on starting an agency in this state? See our complete Minnesota home care licensing guide for every step, deadline, and dollar figure.

Let's break it down in plain English.

Basic vs. Comprehensive: Side-by-Side

Here's the quick view. Use it to spot which license fits your plan.

What a Basic License Covers

A Basic license is for agencies that focus on non-medical help in the home. Think personal care and daily support.

You can offer:

• Bathing help
• Dressing and grooming
• Meal prep
• Medication reminders (not management)
• Standby help so a client doesn't fall
• Light housekeeping

For many new agencies, this is enough. Especially if your team will focus on caregiving and companionship.

But there are limits. A Basic license does not let you provide:

• Skilled nursing
• Medication management
• Therapy services
• Delegated nursing tasks
• Hands-on transfers

If your caregivers will help with more medical needs, you'll want the Comprehensive license instead.

What a Comprehensive License Adds

A Comprehensive license includes everything in the Basic license — plus higher-level care.

You can also offer:

• Skilled nursing
• Medication management
• Therapy services
• RN oversight
• Delegated nursing tasks
• Hands-on mobility help
• More complex client care

This is usually a better fit if you plan to work with:

• Higher-acuity clients
• Hospital referrals
• Post-surgery patients
• Clients who need ongoing clinical oversight

It's also the license you need if you ever want to become a Medicare-certified home health agency.

Do You Need a Registered Nurse?

This is one of the biggest differences between the two.

Basic License

You usually do not need an RN.

Comprehensive License

You do need an RN named on the application. They handle things like:

• Client assessments
• Oversight of care
• Staff training
• Competency checks

You don't need a huge clinical team on day one. But you do need real nursing oversight and clear policies in place.

Background Studies Apply to Both

Minnesota requires background studies for every license type. They run through the state's NETStudy 2.0 system.

These people must pass before you get a license:

• All owners
• All managerial officials
• The named RN or licensed health professional (Comprehensive)
• Every direct-care staff member before unsupervised client contact

There's one shortcut. Staff who already hold a valid health board license and have had a check under Minn. Stat. §214.075 don't need a separate NETStudy 2.0 study. This saves time for nurses and therapists you hire.

Insurance You'll Need

Both license types share the same minimum insurance.

Tip: most insurers want to see your policies and procedures manual before they'll quote you. Get those done first.

How Long Does It Take?

Plan for 3 to 5 months from start to first client.

Most of that time is paperwork and waiting:

• Form your LLC and get an EIN: 1–2 weeks
• Write your policies and procedures: 2–4 weeks
• Get insurance bound: 1–2 weeks
• Finish background studies: 2–4 weeks
• MDH review after a complete application: up to 60 days

Once MDH calls your application complete, the law gives them 60 days to issue or deny your temporary license.

Hire Caregivers as Employees, Not Contractors

Minnesota generally treats home care aides as W-2 employees, not 1099 contractors.

Misclassify them and you can face penalties from the MN Department of Employment and Economic Development. Plus you'll owe back taxes and benefits.

Budget for:

• Workers' compensation insurance
• Payroll taxes
• Unemployment insurance

Which License Should You Choose?

Here's a simple way to think about it.

Choose Basic if:

• You only plan to offer non-medical home care
• You want a simpler startup
• You don't plan to offer nursing services
• You want lower startup costs

Choose Comprehensive if:

• You want more flexibility
• You might add clinical services later
• You want stronger referral sources (hospitals love this)
• You may go after Medicare certification one day

One thing many owners learn the hard way: they start with Basic, then find out referral sources want services that only a Comprehensive license allows.

Upgrading later means filing a new application. To skip that headache, some agencies pick Comprehensive from the start.

Application Fees

Minnesota's temporary license application fees:

Renewal fees are based on your revenue and can change. Always check the latest amounts with the Minnesota Department of Health before you apply.

A Few More Things to Know

Medicare Certification

Only Comprehensive licensees can apply for Medicare certification later.

You Have to Actually Operate

Minnesota expects licensed agencies to really provide home care services. You must deliver qualifying services in a client's home for a fee during each 12-month license period. You can't sit on a license without using it.

Home Care Is Not Assisted Living

A home care license does not let you provide housing or sleeping rooms. If your plan is residential care, you'll need an assisted living license instead.

Plan for Minnesota Winters

MDH expects agencies to have written plans for snowstorms and cold snaps. That means backup staffing, travel rules for caregivers, and safety checks for clients during extreme weather.

The Bottom Line

If your agency will focus on companionship, homemaking, and personal care, a Basic license may be all you need.

But if you want:

• Long-term flexibility
• More referrals
• Higher-acuity clients
• A path to Medicare down the road

Then a Comprehensive license is often the stronger long-term choice.

Want the full roadmap with every form, fee, and timeline? Read our complete guide to starting a home care agency in Minnesota.

Minnesota's licensing setup is pretty clear once you know the difference. Pick the right one now and save yourself time, money, and headaches later.