7 min read

Agency Model vs. Budget Model: What's the Difference?

A plain-English comparison of the Agency Model and the Budget Model in Minnesota's CFSS, and how to decide which one fits your situation.

When you're approved for Minnesota's CFSS program, you have a choice between two service delivery models: Agency Model and Budget Model. The choice matters, it shapes who's in charge, who handles the paperwork, and how much flexibility you actually have.

The big idea

Both models are part of CFSS. Both let you receive in-home support services through Medical Assistance. Both allow paid family members, including spouses and parents of minor children. The difference is who's the legal employer of your caregiver, and who's in charge of the details.

Agency Model

  • A home care agency is the legal employer of your caregivers.
  • The agency hires, schedules, trains, and pays workers.
  • You get a say in who the agency assigns to you, but the agency runs the staffing.
  • Your caregivers are not in the SEIU bargaining unit.

Best for people who don't want to be an employer, don't have someone who can serve as a representative, or want the simplest possible experience.

Budget Model

  • You (or your designated representative) are the legal employer of your caregivers.
  • You hire, schedule, train, and supervise your own workers.
  • An FMS provider like Aspen handles payroll, taxes, background studies, and the rest.
  • Your caregivers are in the SEIU bargaining unit, so specific wage, holiday pay, and PTO rules apply.

Best for people who want to hire a family member or someone they trust, need flexible schedules, want more of their budget going to direct care, or have specific cultural, language, or care needs an agency can't reliably match.

Side by side

Agency Model compared with Budget Model
FeatureAgency ModelBudget Model
Who's the employerThe agencyYou (or your representative)
Who hires and firesThe agencyYou
Who sets the scheduleAgency (with input)You
Payroll and taxesThe agencyYour FMS provider
Background studiesAgency runs themFMS runs them
Spouse/parent paid caregiversAllowedAllowed
FlexibilityLowerHigher
SEIU contractDoes not applyApplies to workers
Continuity of careVariableTypically higher

Why most paid family caregivers use Budget Model

The Agency Model technically allows paid spouses and parents of minors under CFSS, but in practice, most families who want to be paid caregivers choose the Budget Model. In the Agency Model, the agency is the employer of the family member, subject to the agency's policies, schedules, and supervision. In the Budget Model, the family member is your employee, and you make the rules within program requirements.

You can switch

You're not locked in. You can move from Agency to Budget Model (or vice versa) when your needs change. Talk to your case manager and consultation services provider.

All resources

Ready to talk it through?

Call (651) 555-0148