TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 15. MEDICAID ELIGIBILITY

Subchapter E. INCOME

40 TAC §15.450

The Texas Department of Human Services (DHS) proposes to amend §15.450, concerning general principles concerning income, in its Medicaid Eligibility chapter. The purpose of the amendment is to comply with House Bill 143 (HB), in which the 76th Texas Legislature, 1999, approved an increase of the personal needs allowance (PNA). The Appropriations Bill allowed the PNA to be $45 per month. The increase is retroactive to September 1, 1999. For SSI clients who receive the $30 federal benefit rate, the state will supplement their incomes by $15 per month so they also have $45 for personal use.

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section.

The effect on state government for the first five-year period the section will be in effect is an estimated additional cost increase in revenue of $6,904,706 in fiscal year (FY) 2000; $6,750,780 in FY 2001; $6,750,780 in FY 2002; $6,750,780 in FY 2003; and $6,750,780 in FY 2004.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that clients will have additional money for personal needs. The amendment to Chapter 15 will not have an adverse economic effect on large, small, or micro-businesses.

Questions about the content of this proposal may be directed to Judy Coker at (512) 438-3227 in DHS's Long-Term Care section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-065, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under Section 2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

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

§15.450.General Principles Concerning Income.

(a) - (g)

(No change.)

(h)

A personal needs allowance (PNA) is an amount of a client's income that a client in an institutional setting may retain for his personal use. It will not be applied against the costs of medical assistance furnished in the facility. Clients in institutional settings may retain $45 per month for their personal use. In couple cases, each spouse may retain $45. For SSI clients who receive the $30 reduced federal benefit, the state supplements their incomes by $15 per month to allow a total of $45 for personal needs. The effective date of the $45 PNA is September 1, 1999; prior to that date, the PNA was $30.

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 January 13, 2000.

TRD-200000212

Paul Leche

General Counsel

Texas Department of Human Services

Earliest possible date of adoption: February 27, 2000

For further information, please call: (512) 438-3108