TITLE social-services-and-assistance

Part I. Texas Department of Human Services

Chapter 19. Nursing Facility Requirements for Licensure and Medicaid Certification

Subchapter AA. Vendor Payment

40 TAC §19.2609

The Texas Department of Human Services (DHS) adopts new §19.2609 without changes to the proposed text published in the January 22, 1999, issue of the Texas Register (24 TexReg 373). The text will not be republished.

Justification for the new section is that a business rule for the new Claims Management System, a joint undertaking of the Texas Department of Human Services, the Texas Department of Mental Health and Mental Retardation, and the National Heritage Insurance Company (NHIC), requires that claims be submitted within 180 days of service. The department made the rule change to conform to the business rule.

The new section will function by implementing a business rule for the claims management system (CMS) project. Under the CMS project, DHS and the Texas Department of Mental Health and Mental Retardation have partnered with the National Heritage Insurance Company (NHIC) to develop an automated business system to consolidate claims submission and processing for 19 different long term care programs of the two agencies. The rule states that claims should be submitted within 180 days of service.

The department received a comment regarding adoption of the amendment from the Texas Health Care Association. A summary of the comment and the department's response follows.

Comment: The Texas Health Care Association (THCA) believes the proposed rules appear to directly violate the Austin Court of Appeals ruling in the Texas Department of Human Services, et al. v. Christian Care Centers, Inc., litigation of 1991. In its ruling, the court determined that the department has no authority to withhold payment for care given simply because of late submission of paperwork. In fact, Medicaid and Medicare law presumes that providers will be paid for care given.

The Texas Legislature, in its appropriations bill, assumes a two-year window for payment of bills owed by the state for services provided. In fact, the Legislature provides a mechanism for payment of claims older than two years through its "miscellaneous claims" legislation (House Bill 2778, 75th Legislative Session (1997)). Together, these bills clearly show that the Legislature intends to pay the legitimate claims for goods and services provided to the state.

THCA disagrees with the department's claim that there will be no fiscal impact resulting from the implementation of this rule. THCA suggests that the department calculate the total dollar amount of claims paid in the last year on claims in excess of 180 days. The result would be a good estimate of the fiscal impact that this rule would have on providers, if implemented.

The federal regulations at 42 CFR 447.45(d) acknowledge that a 12-month window for claims submission is acceptable. Although one reason for a claim exceeding 180 days can be a lack of timeliness on the provider's part in submitting the claim, there are many, many times that this lack of timeliness is entirely beyond the control of the provider. Private insurance and Medicare Part A eligibility denials and the subsequent appeals processes, for example, can easily exceed two years. In addition, Medicare has a new payment system and we do not know how long it will take to process claims and denials. This proposed rule would restrict cash flow and result in undue hardship on providers for actions that are often entirely beyond their control.

Many nursing facilities admit people who are applying for SSI; many of these people have no income and cannot apply for Medicaid until the SSI process is approved. This process takes at least six months to complete, and can take much longer if documentation is difficult to find. (In the proposed rule it states that claims submitted after 180 days may be paid after approval by DHS. The proposed rule further states that the 180-day billing period begins when eligibility is established.) The potential for extreme fiscal impact for every nursing facility is tremendous. The proposed rules also state that "an excessive number of late claims or adjustments may subject the service provider's claims procedures to audit by DHS." The Medicaid Eligibility worker reviews all patient files every six months; this review can result in a reduction or increase of patient applied income. When the facility receives this document an adjustment is necessary. As you can see this could take over 180 days.

Submission of a "claim" by a nursing facility is not a simple process. It involves submission of several types of forms such as 3652, 3618, and 3619 plus the new CMS Data Entry. An error on any one of these forms could be considered as "failure to submit a claim."

A major concern is the fact that there is no process, procedure, or guidelines set forth in the draft rules regarding the approval process by DHS for late submitted claims. Another major concern is that TDHS is not required in the rule to give notice to the facility that reimbursement is going to cease.

In summary, this proposed rule might violate a court ruling that TDHS has no authority to withhold payment for care given simply because of late submission of paperwork. Also, this proposed rule would have a negative fiscal impact on providers and violate legislative intent. If a nursing facility provides reimbursable services, the department should pay for the service. I appreciate the opportunity to provide these comments.

Response: The department does not agree with the comment. The proposed rule does not give DHS the authority to withhold payment; in fact, it specifically allows TDHS to pay late claims. The 180-day deadline in the rule is for purposes of encouraging timely submission of claims, which benefits both the department and the provider.

The commenter's concern about the length of time it takes to establish Medicaid eligibility is specifically addressed by the rule, which states, "In the event that Medicaid eligibility for benefits is established after provision of services, the 180-day period for submission of claims will start on the date eligibility is established."

The new section is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The new section implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903338

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: January 22, 1999

For further information, please call: (512) 348-3765


Chapter 41. Utilization Review

The Texas Department of Human Services (DHS) adopts the repeal of §§41.1-41.5, 41.201, 41.301, 41.302, 41.401-41.403, 41.501-41.503, 41.601, 41.701-41.704, 41.801, and 41.802, without changes to the proposed text published in the April 16, 1999, issue of the Texas Register (24 TexReg 3046). The text will not be republished.

Justification for the repeals is to delete obsolete rules.

The repeals will function by deleting obsolete material.

The department received no comments regarding adoption of the repeals.

Subchapter A. Out-of-State Vendor Payments on Behalf of Texas Residents

40 TAC §§41.1-41.5

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeals implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903379

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter B. Health Insuring Agent

40 TAC §41.201

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903380

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter C. Implementation Procedures for Nursing Facilities

40 TAC §41.301, §41.302

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeals implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903381

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter D. Skilled Nursing Facility Procedural Guide

40 TAC §§41.401-41.403

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeals implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903382

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter E. Intermediate Care Facility Procedural Guide

40 TAC §§41.501-41.503

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeals implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903383

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter F. Utilization Review Committees

40 TAC §41.601

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903384

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter G. Long-Term Care Unit Procedures

40 TAC §§41.701-41.704

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeals implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903385

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter H. Level-of-Care Criteria

40 TAC §41.801, §41.802

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance pro- grams; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeals implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903386

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Chapter 43. Utilization Control

The Texas Department of Human Services (DHS) adopts the repeal of §§43.1, 43.11, 43.21, 43.31, 43.41, 43.51, 43.61, 43.71, 43.81, 43.91, and 43.101, without changes as proposed and published in the April 16, 1999, issue of the Texas Register (24 TexReg 3049). The text will not be republished.

Justification for the repeals is to delete obsolete rules.

The repeals will function by deleting obsolete material.

The department received no comments regarding adoption of the repeals.

Subchapter A. Management Responsibilities

40 TAC §43.1

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903387

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter B. Exception Management

40 TAC §43.11

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903388

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter C. Program

40 TAC §43.21

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903389

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter D. Health Care Standards

40 TAC §43.31

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903390

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter E. Educational Programs

40 TAC §43.41

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903391

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter F. Review of Pharmaceutical Services

40 TAC §43.51

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903392

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter G. Review of New Drug Applications

40 TAC §43.61

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903393

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter H. Therapeutic Classification of Drugs

40 TAC §43.71

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903394

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter I. Monitoring Drug Laws, Regulations, and Marketing Procedures

40 TAC §43.81

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903395

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter J. Research, Development, and Application of Quantitative Techniques

40 TAC §43.91

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903396

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Subchapter K. Quantitative Analysis in Developing Criteria

40 TAC §43.101

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 9, 1999.

TRD-9903397

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: April 16, 1999

For further information, please call: (512) 438-3765


Chapter 48. Community Care for Aged and Disabled

The Texas Department of Human Services (DHS) adopts the repeal of §48.2107, §48.2809, and §48.6013, and an amendment to §48.2807, without changes to the proposed text published in the January 22, 1999, issue of the Texas Register (24 TexReg 376).

Justification for the repeals and the amendment is that a business rule for the new Claims Management System, a joint undertaking of the Texas Department of Human Services, the Texas Department of Mental Health and Mental Retardation, and the National Heritage Insurance Company (NHIC), requires that claims be submitted within 180 days of service. The department made the rule change to conform to the business rule.

The amendment will function by implementing a business rule for the claims management system (CMS) project. Under the CMS project, DHS and the Texas Department of Mental Health and Mental Retardation have partnered with the National Heritage Insurance Company (NHIC) to develop an automated business system to consolidate claims submission and processing for 19 different long term care programs of the two agencies. The rule states that claims should be submitted within 180 days of service.

The department received no comments regarding adoption of the proposal.

Subchapter C. Medicaid Waiver Program for Persons with Related Conditions

40 TAC §48.2107

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903339

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: January 22, 1999

For further information, please call: (512) 438-3765


Subchapter G. Program for All-inclusive Care for the Elderly (PACE)

40 TAC §48.2807

The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903340

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: January 22, 1999

For further information, please call: (512) 438-3765


40 TAC §48.2809

The repeal is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903341

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: January 22, 1999

For further information, please call: (512) 438-3765


Subchapter J. 1915(c) Medicaid Home and Community-based Waiver Services for Aged and Disabled Adults Who Meet Criteria for Alternatives to Nursing Facility Care

40 TAC §48.6013

The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903342

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: January 22, 1999

For further information, please call: (512) 438-3765


Chapter 49. Contracting for Community Care Services

40 TAC §49.9

The Texas Department of Human Services (DHS) adopts an amendment to §49.9 without changes to the proposed text published in the January 22, 1999, issue of the Texas Register (24 TexReg 379). The text will not be republished.

Justification for the amendment is that a business rule for the new Claims Management System, a joint undertaking of the Texas Department of Human Services, the Texas Department of Mental Health and Mental Retardation, and the National Heritage Insurance Company (NHIC), requires that claims be submitted within 180 days of service. The department made the rule change to conform to the business rule.

The amendment will function by implementing a business rule for the claims management system (CMS) project. Under the CMS project, DHS and the Texas Department of Mental Health and Mental Retardation have partnered with the National Heritage Insurance Company (NHIC) to develop an automated business system to consolidate claims submission and processing for 19 different long term care programs of the two agencies. The rule states that claims should be submitted within 180 days of service.

The department received a comment regarding adoption of the amendment from the Texas Association for Home Care. A summary of the comment and the department's response follows.

Comment: The Texas Association for Home Care, Inc., opposes the statement in §49.9 that "all payments are subject to availability of funds as provided by law." In the review process, it was stated by Department staff that there are contracts which state a maximum number of hours of service or dollars to be billed. Also, there are instances where billings may be settled after the end of the department's fiscal year, in which case legislative approval may be necessary. In order to address these circumstances, the first provision in the proposed rule which we are objecting to should be deleted. The second provision should be reworded to state " claims and adjustments received after the 180-day time period, or exceeding contract limits, may be paid upon approval by DHS, subject to availability of funds as provided by law." This would ensure the provider which does bill timely and within their contracted amount will get paid for services rendered in good faith.

Response: The department will retain the statement "all payments are subject to availability of funds as provided by law." This is merely a statement of fact. The department will retain the second provision: "Claims and adjustments received after the 180-day time period may be paid upon approval by DHS." This rule sets a time limit for submitting claims. The provision merely provides that DHS may approve late claims for payment. There may be a number of reasons why this would occur and there is no reason to list any one reason.

The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903343

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: July 1, 1999

Proposal publication date: January 22, 1999

For further information, please call: (512) 438-3765


Part II. Texas Rehabilitation Commission

Chapter 106. Contract Administration

Subchapter A. Acquisition of Client Goods and Services

40 TAC §106.35

The Texas Rehabilitation Commission (TRC) adopts an amendment to §106.35 concerning Acquisition of Client Goods and Services, without changes to the proposed text as published in the May 7, 1999, issue of the Texas Register and will not be republished.

The section is amended to include grants within the appeal rules for contracts.

No comments were received regarding adoption of the amendment.

The amendment is adopted under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 8, 1999.

TRD-9903326

Charles Schiesser

Chief of Staff

Texas Rehabilitation Commission

Effective date: June 28, 1999

Proposal publication date: May 7, 1999

For further information, please call: (512) 424-4050