TITLE health-services

Part II. Texas Department of Mental Health and Mental Retardation

Chapter 409. Medicaid Programs

Subchapter L. Mental Retardation Local Authority (MRLA) Pilot Program

25 TAC §§409.517, 409.519, 409.521, 409.523, 409.525, 409.527, 409.529, 409.531, 409.533, 409.535, 409.537, 409.539, 409.541

The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes new §§409.517, 409.519, 409.521, 409.523, 409.525, 409.527, 409.529, 409.531, 409.533, 409.535, 409.537, 409.539, and 409.541 of Chapter 409, Subchapter L, concerning Mental Retardation Local Authority (MRLA) Pilot Program.

The proposed new sections would govern the MRLA Pilot Program authorized by §533.0355 of the Texas Health and Safety Code, which allows the department to implement a pilot project to study an authority structure for service delivery at the local or regional level through a pilot mental health or mental retardation authority. This subchapter is also adopted in response to Senate Concurrent Resolution 55 of the 74th Texas Legislature which requires the State Medicaid Office to apply for a federal waiver to allow a consumer-directed pilot program for persons with mental retardation and other developmental disabilities. The State Medicaid Office, Texas Health and Human Services Commission, has delegated the authority to operate this pilot program to TDMHMR. The MRLA Pilot Program would be implemented on April 1, 1998, contingent on the approval of a waiver request submitted by TDMHMR to the Health Care Financing Administration.

The first part of the subchapter, proposed in the January 12, 1998, issue of the Texas Register (22 TexReg 12243-12248), provides the basic framework necessary to implement the MRLA Pilot Program: provisions related to the geographic boundaries of the pilot, service components, client eligibility criteria, payment categories and provider claims payment, criteria for payment, utilization review, other provider requirements, and the provider's right to an administrative hearing. The subchapter is being proposed in stages to enable implementation of the MRLA Pilot Program on April 1, 1998, which will provide for access to federal and state funds to serve an additional 225 individuals who are currently on waiting lists.

The proposed sections in this issue of the Texas Register represent the second part of the subchapter. These sections deal with maintenance of consumer waiting lists, processes for applicant enrollment, certification of providers, corrective actions and sanctions, payment of rejected claims, calculation of consumer copayment, and provider certification standards.

A related action, published in the December 19, 1997, issue of the Texas Register (22 TexReg 12369-12372), is the proposal of rules by the Health and Human Services Commission to describe cost reimbursement methodology requirements for the pilot program. Responsibility for adopting rules governing the determination of fees, charges, and rates for Medicaid payments under Chapter 32, Texas Human Resource Code, transferred to the Health and Human Services Commission on September 1, 1997, pursuant to §531.021 of the Texas Government Code.

Don Green, chief financial officer, has determined that for each year of the first five-year period the rule, as proposed, is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed sections.

Ernest McKenney, director, Medicaid Administration, has determined that for each year of the first five years the new sections are in effect the public benefit anticipated will be that data from the pilot on the role of the local authority will be used to improve service delivery systems prior to state wide implementation For each year of the first five years the new sections are in effect there is no anticipated economic cost to persons who are required to comply with the proposed sections. There will be no effect on small business.

A public hearing will be held at 8:30 a.m., Monday, February 23, 1998, in Room 240 of the main TDMHMR Central Office building (Building 2) at TDMHMR Central Office, 909 West 45th Street, Austin, Texas, to accept oral and written testimony concerning the proposal. Persons requiring an interpreter for the deaf or hearing impaired should notify Sheila Wilkins, Office of Policy Development, at least 72 hours prior to the hearing by calling (512) 206-4516.

Questions about the content of the proposal may be directed to Mr. McKenney. Comments on the proposed sections should be submitted to Linda Logan, director, Policy Development, Texas Department Mental Health and Mental Retardation, P.O. Box 12668, Austin, TX 78711-2668, within 30 days of publication.

The amended sections are proposed under the Texas Health and Safety Code, §532.015(a), which provides TDMHMR with broad rulemaking authority; Human Resource Code, Chapter 32, §32.021, and Government Code, Chapter 531, §531.021, which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer federal medical assistance funds and administer the state's medical assistance program. Senate Bill 509 of the 74th Texas Legislature clarifies THHSC's authority to delegate the operation of all or part of a Medicaid program to a health and human service agency.

The section affects Human Resources Code, Chapter 32, and Government Code, Chapter 531, §531.021.

§409.517.Rejected Claims.

If the Texas Department of Mental Health and Mental Retardation (TDMHMR) rejects a claim because of errors, the provider must research the errors, initiate appropriate corrective action, and resubmit a corrected claim to TDMHMR with supporting documentation within 180 calendar days from the end of the month of service or within 30 days of notification of a rejected claim by TDMHMR, whichever is later.

§409.519.Calculation of Consumer Co-payment.

(a)

Consumers who are determined to be financially eligible based on the special institutional income limit are required to share in the cost of waiver services. The method for determining the consumer's co-payment is described in subsection (b) of this section and documented on the Texas Department of Human Services Medical Assistance Only Worksheet. When calculating the co-payment amount for consumers with incomes that exceed the supplemental security income (SSI) federal benefit rate (FBR), deduct the following:

(1)

the cost of the consumer's maintenance needs which must be equivalent to the special institutional income limit for eligibility under the Texas Medicaid program.

(2)

the cost of the maintenance needs of the consumer's dependent children. This amount is equivalent to the Temporary Assistance to Needy Families (TANF) basic monthly grant for children or a spouse with children, using the recognizable needs amounts in the TANF Budgetary Allowances Chart; and

(3)

the costs incurred for medical or remedial care which are necessary but are not subject to payment by Medicare, Medicaid, or any other third party. These include the cost of health insurance premiums, deductibles, and co-insurance.

(b)

The co-payment amount is the consumer's remaining income after all allowable expenses have been deducted. The co-payment amount is applied only to the cost of home and community-based services which are funded through the MRLA Pilot Program and specified on the consumer's IPC. The co-payment must not exceed the cost of services actually delivered.

(c)

Consumers must pay the cost sharing amount to the provider contracted to deliver authorized waiver services.

§409.521.Spousal Impoverishment Provisions.

(a)

For program consumers with spouses who live in the community, the income and resource eligibility requirements are determined according to the spousal impoverishment provisions in the Social Security Act, §1924, and as specified in the Medicaid State Plan and in §409.505(a)(1) of this title (relating to Client Eligibility Criteria.)

(b)

After the consumer is determined to be eligible for Medicaid, the Texas Department of Human Services (TDHS) determines the amount of the consumer's income applicable to payment.

(c)

To determine the amount of the consumer's income applicable to payment, TDHS uses the same methodology as if the consumer were residing in an institution, except that the personal needs allowance is equal to the institutional income cap. The spousal diversion is equal to the SSI income limit.

§409.523.Maintenance of MRLA Pilot Program Referral List.

(a)

The local MRA will maintain an up-to-date list of individuals living in and waiting for MRLA Pilot Program services in the MRA's local service area.

(1)

The MRA will assign the individual's placement on the referral list, chronologically by date of application.

(2)

The MRA will notify MRLA Pilot Program providers in its local service area of the process providers should use to refer applicants who wish to be placed on the referral list.

(3)

The MRA may disregard an applicant on the referral list only when the following documentation exists:

(A)

written permission of the applicant or the applicant's legal representative to remove the applicant's name from the referral list;

(B)

the applicant is deceased;

(C)

the applicant moved out of the local service area; or

(D)

TDMHMR has denied the applicant's enrollment and the applicant or the applicant's legal representative has had an opportunity to exercise the applicant's right to appeal the decision according to §409.505 of this title (relating to Client Eligibility Criteria).

(4)

At the written request of an applicant or the legal representative of an applicant who moves to the local service area of a different MRA, the original MRA will assist in transferring the applicant's name and current application date to the MRA having jurisdiction in the local service area where the applicant has moved. The MRA receiving the referral transfer will add the individual's name to its referral list maintaining the current application date assigned by the transferring MRA.

§409.525.Process for Applicant Referral and Enrollment.

(a)

The MRA designated by TDMHMR for the geographic area in which the applicant resides will receive all requests from applicants seeking enrollment into the MRLA Pilot Program.

(1)

The MRA will register the applicant on the MRA's referral list as specified in §409.523 of this title (relating to Maintenance of MRLA Pilot Program Referral List).

(2)

The MRA will notify the first applicant on the referral list when a placement vacancy occurs in the MRA's local service area and begin the referral/enrollment process by informing the applicant and/or the applicant's legal representative of his/her choice between participation in the ICF-MR Program or the MRLA Pilot Program and documenting the applicant's or the representative's choice of services.

(3)

If the applicant or representative chooses participation in the MRLA Pilot Program, the MRA will assign a Service Coordinator who will develop a Person-Directed Plan (PDP). At minimum, the PDP will include the following:

(A)

a description of the services and supports the individual requires to continue living in the community;

(B)

a description of the individual's current services and supports, identifying those that would continue to be available if the individual enrolled in the MRLA Pilot Program (e.g., services not covered under the approved waiver);

(C)

individual outcomes to be achieved through MRLA Pilot Program service components and justification for each service component to be included in the applicant's IPC;

(D)

identification of all determinations needed to establish the applicant's eligibility for SSI or Medicaid benefits and for an ICF-MR Level of Care (LOC); and

(E)

actions and methods to be used to reach identified service outcomes, projected completion dates, and person(s) responsible for completion.

(4)

The service coordinator prepares an application for the individual's enrollment into the MRLA Pilot Program.

(A)

If the applicant's financial eligibility for the MRLA Pilot Program must be established, the MRA will initiate, monitor, and support the individual's application processes necessary to obtain a financial eligibility determination.

(B)

The MRA will complete an LOC assessment form. The MRA will determine or validate a determination that the applicant has mental retardation in accordance with Chapter 405, Subchapter D of this title (relating to Determination of Mental Retardation and Appropriateness for Admission to Mental Retardation Services) or verify that the individual has been diagnosed by a licensed physician as having a related condition as defined in §406.202 of this title (relating to Definitions for Level-of-Care and Level-of-Need Criteria). The MRA will administer the Inventory for Client and Agency Planning (ICAP) and recommend a level-of-need assignment to TDMHMR in accordance with §409.507 of this title (related to Payment Category Assignment and Provider Claims Payment).

(C)

Develop a proposed IPC with the applicant based on the PDP and §409.503(b) of this title (relating to Service Components of the MRLA Program).

(5)

The Service Coordinator will inform the applicant or the applicant's legal representative of all available MRLA Pilot Program providers in the local service area. The Service Coordinator will:

(A)

assist the applicant or the applicant's legal representative in selecting potential providers within the local service area;

(B)

review the proposed IPC with potential provider agencies as selected by the applicant or the applicant's legal representative;

(C)

arrange for meetings/visits with potential providers as desired by the applicant or the applicant's legal representative;

(D)

assure that the applicant's or representative's choice of a specific provider is documented, is signed by the applicant or the applicant's representative and is retained by the MRA in the individual's record; and

(E)

negotiate/finalize the proposed IPC to be delivered by the selected provider.

(b)

When the selected provider has agreed to deliver the services delineated on the IPC, the MRA will submit the application for enrollment to TDMHMR. TDMHMR will send notification of the applicant's approval or denial of MRLA Pilot Program enrollment to the applicant, the selected provider, and the responsible MRA.

(c)

The selected provider will initiate services in accordance with the approved IPC upon receipt of TDMHMR's enrollment approval.

§409.527.Revisions and Renewals of IPCs, LOCs and LONs for Enrolled Individuals.

(a)

At least annually, but prior to the expiration of an individual's IPC, the service coordinator, the individual, the individual's legal representative, and the provider must review the PDP to assure individual outcomes previously identified are relevant. The IPC is reviewed by the service planning team, updated to reflect any changes to the PDP, and is submitted to TDMHMR for approval.

(b)

The service coordinator, in collaboration with the service planning team, will initiate revisions to the IPC in response to changes in the individual's needs as documented in the current PDP.

§409.529.Coordination of Transfers and Permanent Discharges.

(a)

Individuals who are currently receiving services from an HCS or HCS-O Program provider and who are moving to a geographic area covered by the MRLA Pilot Program may request to transfer their services to an MRLA Pilot Program provider. The service coordinator from the receiving MRA will:

(1)

coordinate with the individual and their current HCS or HCS-O provider to facilitate selection of a provider and enrollment in the MRLA Pilot Program.

(2)

determine in conjunction with the current HCS or HCS-O provider and the receiving MRLA provider, an effective date for enrollment.

(3)

review the current IPC with the individual and the receiving MRLA provider and will negotiate and finalize the initial MRLA Pilot Program IPC. The effective date of the individual's IPC as established in the HCS or HCS-O Program will not be changed upon enrollment with an MRLA provider.

(b)

Individuals currently receiving services within the MRLA Pilot Program may request to transfer their services to another MRLA provider in any of the local service areas specified in §409.501(a) of this title (relating to Geographic Area of the MRLA Pilot Program).

(1)

If an individual is transferring to a provider within the same MRA, the service coordinator will coordinate with the individual, the current provider, and the receiving provider to facilitate the transfer.

(2)

If the transfer will be to another MRA in the MRLA Pilot Program, the sending and receiving MRAs will coordinate the transfer. The receiving service coordinator will review the current IPC with the individual and the receiving MRLA provider and will initiate any changes if needed. The effective date of the individual's IPC will not be changed upon transfer to another provider.

(3)

The MRAs will determine in conjunction with the current provider and the receiving MRLA provider, an effective date for transfer.

(c)

Individuals who are moving outside the geographic area of the MRLA Pilot Program and who are currently receiving services from an MRLA provider may request to transfer their services to an HCS or HCS-O Program provider in the area to which they are moving.

(1)

If the individual is seeking HCS-O Program services, the service coordinator will confirm the individual's eligibility with TDMHMR.

(2)

The receiving MRA will assist the individual or the individual's representative to facilitate selection of an HCS or HCS-O provider.

(3)

The current and the receiving MRAs will determine in conjunction with the current MRLA provider and the receiving HCS or HCS-O provider an effective date for enrollment.

(4)

The effective date of the individual's IPC as established in the MRLA Pilot Program will not be changed upon enrollment into the HCS or HCS-O Program.

(d)

TDMHMR must approve all discharges from program services.

(1)

The service coordinator must submit the request to TDMHMR to discharge an individual from program services.

(2)

TDMHMR will send a written discharge notification to the participant or the participant's representative, the provider, and the MRA indicating the effective date of the discharge and the participant's right to a fair hearing in accordance with §409.505 of this title (relating to Client Eligibility Criteria).

§409.531.Certification Status.

(a)

Program providers contracted with TDMHMR for participation in the MRLA Pilot Program must be in continuous compliance with the MRLA Pilot Program Principles for Program Providers as described in Each program provider participating in the MRLA Pilot Program will receive a certification review conducted by TDMHMR or its designee at least annually in order to maintain certification status.

Figure 1: 25 TAC §409.531(a).

(1)

TDMHMR personnel will conduct all certification reviews of program providers operated by the local Mental Retardation Authority.

(2)

TDMHMR or its designee will conduct all certification reviews of non-MRA operated program providers.

(b)

Certification review corrective action plans required from the program provider as determined by prior reviews under the HCS or HCS-O Consumer Principles for Evidentiary Certification and related timelines remain in effect until the first certification review as a program provider participating in the MRLA Pilot Program.

§409.533.Hazards to Health, Safety, and Welfare.

A hazard to health, safety, and welfare is any condition that the review team determines may result in imminent death, or serious or permanent harm to an individual. A hazard is designated as such in the MRLA Pilot Program certification review report. If the hazard is corrected during the review visit, the corrections will also be designated in the report.

(1)

Immediate Corrective Action. Findings determined to be a hazard to health, safety and welfare must be corrected by the program provider before the exit conference of the respective review.

(2)

Sanctions. If the program provider does not correct the hazard to health, safety, and welfare before the exit conference,

(A)

the program provider will be denied certification, and

(B)

the MRA with permission of the Texas Department of Mental Health and Mental Retardation (TDMHMR) will immediately coordinate development of alternative services for people enrolled in the provider's program, as appropriate.

§409.535.Compliance.

If any item of noncompliance with the MRLA Pilot Program Evidentiary Principles for Program Providers remains uncorrected at the time of the exit conference, the program provider must complete corrective action within 30 calendar days following the exit conference. TDMHMR or its designee must complete a follow-up review within 15 calendar days following the 30th day. The follow-up review may be either a desk review of documentation or an on-site review at the review team's discretion.

§409.537. Sanctions.

(a)

If the program provider does not correct all remaining items of noncompliance by the completion of the first follow-up review, a vendor hold may be implemented and will continue until corrective action is confirmed by TDMHMR.

(1)

TDMHMR or its designee will complete a second follow-up review between 30 and 60 calendar days from the date the vendor hold was implemented.

(2)

If the program provider corrects all items of noncompliance by the completion of the second follow-up review, the vendor hold is removed effective the date the review is completed.

(b)

TDMHMR denies certification and initiates contract cancellation if the program provider does not correct all items of noncompliance by the completion of the second follow-up review.

§409.539.Unannounced or Intermittent Review Visits.

(a)

TDMHMR or its designee may conduct unannounced or intermittent review visits at any time, with or without prior notice to the program provider.

(b)

Items of noncompliance noted in unannounced or intermittent review visits may result in certification action described in §409.533 and §409.537 of this title (relating to Hazards to Health, Safety, and Welfare; Compliance; and Sanctions).

§409.541.Compliance with MRLA Pilot Program Principles for Mental Retardation Authorities.

(a)

Mental Retardation Authorities participating in the MRLA Pilot Program must be in continuous compliance with the MRLA Pilot Program Principles for Authorities as described in

Figure 2:25 TAC §409.541(a).

(b)

Each Mental Retardation Authority participating in the MRLA Pilot Program will receive a compliance review conducted by TDMHMR at least annually.

(c)

If any item of noncompliance remains uncorrected by the Mental Retardation Authority at the time of the review exit conference, the Mental Retardation Authority will develop a plan of correction with timelines to be implemented after approval by TDMHMR. TDMHMR may take action as specified in the performance contract between the local Mental Retardation Authority and TDMHMR if the MRA fails to develop or implement an approved plan of correction.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 2, 1998.

TRD-9801449

Ann Utley

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 206-4516