TITLE 25.HEALTH SERVICES

Part 1. TEXAS DEPARTMENT OF HEALTH

Chapter 38. CHRONICALLY ILL AND DISABLED CHILDREN'S SERVICES PROGRAM

25 TAC §§38.1 - 38.18

The Texas Department of Health (department) adopts the repeal of §§38.1 - 38.18 and new §§38.1 - 38.15 concerning the Children with Special Health Care Needs (CSHCN) Services Program. Sections 38.2 - 38.4, 38.6, 38.7, 38.10, and 38.12 - 38.14 are adopted with changes to the proposed text as published in the October 27, 2000, issue of the Texas Register (25 TexReg 10632). The repeals and new §§38.1, 38.5, 38.8, 38.9, 38.11, and 38.15 are adopted without change, and therefore will not be republished.

The new rules cover purpose and common name; definitions; eligibility for client services; covered services; rights and responsibilities of parents/foster parents/guardian/managing conservator or the adult client; providers; ambulatory surgical care facilities; inpatient rehabilitation centers; cleft/craniofacial center teams; payment of services; contracts, written agreements, and donations; denial/modification/suspension/termination of eligibility and/or services; right of appeal; development and improvement of standards and services; and the Children with Special Health Care Needs (CSHCN) Advisory Committee.

The repeal of §§38.1-38.18 allows for the adoption of the new sections in Texas Register format. The new §§38.1-38.15 update and revise the CSHCN program to bring the program into compliance with state law; to improve program services for clients, families, providers, and contractors; to make the program administratively more efficient and effective; and to allow the program better to complement other programs serving children with special health care needs, including the Texas Medical Assistance (Medicaid) Program and the Children's Health Insurance Program (CHIP). Senate Bill 374, 76th Legislature, 1999, amended the Health and Safety Code, Chapter 35, requiring changes to the CSHCN program. The new sections implement Senate Bill 374.

Changes made to the proposed text result from comments received during the comment period. The details of the changes are described in the summary of comments that follow. Other minor changes were made due to staff comments to clarify the intent and improve the accuracy of the sections.

Comment: Concerning the chapter as a whole, several comments recommended that the financial eligibility criteria for the CSHCN program should be the same as those for the CHIP program. CSHCN who are eligible for CHIP also should be eligible for CSHCN program benefits not included in the CHIP benefit plan, and applicants to both programs should not be required to complete two similar, but separate application forms to document financial criteria.

Response: The department agrees that the CSHCN financial eligibility criteria and application forms for the CSHCN program should be as compatible as possible with those for the CHIP program. The CSHCN program and CHIP already set family income eligibility at 200% of the federal poverty level, employ comparable financial criteria, and serve similar client populations. Streamlining the CSHCN application process will improve delivery of program service to families.

The department amended the description of financial criteria in §38.3(2) as follows: "Financial criteria are determined annually and are based upon the same determinations of income, family size, and disregards as the CHIP. The CHIP net income is the family's gross income minus disregards. For applicants who are not eligible for CHIP, premiums paid for health insurance may be included as an additional disregard. All families must verify their income and disregards." The department has deleted proposed §38.3(2)(A) and §38.3(2)(B) and re-designated the remaining subparagraphs.

The department amended §38.3(7)(B) to require documentation for "income disregards" in the application process and added "criteria for" to clarify §38.3(8).

Comment: Concerning the chapter as a whole, one comment stated that if the CSHCN program initiates a denial, suspension, or termination of eligibility or a request for covered services, including family supports, inclusion of information by the program concerning the right to appeal and the time limits for the appeal along with notice of the program's adverse action is critical.

Response: The program agrees. Sections 38.3(6)(C), 38.4(b)(5)(B)(viii), and 38.13(b)(1) address these requirements. No changes were made as a result of this comment.

Comment: Concerning the chapter as a whole, several comments stated that home health agencies are now called "certified home and community support services" agencies.

Response: The department agrees and has amended §§38.4(b)(3)(Q), concerning program rehabilitation services; 38.6(c)(19), concerning providers; and 38.10(3)(K), concerning payment of services accordingly.

Comment: Concerning the chapter as a whole, one comment recommended that any limitations on eligibility or covered services based on budgetary limitations by type of service, by age, and/or by client's medical status be defined in rule and approved by the Board of Health.

Response: The department agrees that specific criteria for making budgetary limitations should be carefully defined at the time that such limitations are necessary. However, adoption of such criteria by rule could restrict significantly the program's flexibility and its ability to implement a timely response to changing needs. No changes were made as a result of this comment.

Comment: Concerning the chapter as a whole, one comment recommended that eligible clients should be moved from the waiting list to begin receiving program services solely on a first come, first served, basis without regard to the urgency or severity of the client's needs or condition.

Response: The department disagrees. During development of the rule, many stakeholders expressed concern that if the waiting list is administered according to a strict first-come, first-served policy, critically ill children might languish on the waiting list while other "less ill" children would be able to receive program benefits. Although the program must have flexibility to respond to individual crisis situations, the first-come, first-served principle is a primary consideration. No changes were made as a result of this comment.

Comment: Concerning the chapter as a whole, one comment stated that CSHCN clients who meet the Texas Department of Mental Health and Mental Retardation (TDMHMR) priority population program definition and are referred to TDMHMR for services through community mental health centers may find that the services are not available. The comment stated that CSHCN clients should not be denied services under those circumstances because the CSHCN program is the payer of last resort.

Response: Section 38.4(e)(3), concerning services authorization, and §38.6(a)(4), concerning general requirements for provider participation both state that the CSHCN program is the payer of last resort, when payment from another source, "is available to the client." If services from TDMHMR were available, CSHCN program rules would require that the client use the TDMHMR benefit first. However, if payment or services were not available from TDMHMR, the rule would not require a CSHCN program denial. No changes were made as a result of this comment.

Comment: Concerning the chapter as a whole, one comment stated that pilot projects and wellness centers that use the "parents as case managers" model should always receive preferential consideration for funding.

Response: The department disagrees. Although the "parents as case managers" model should, in most instances, receive additional consideration for funding, the decision to award funding to pilot projects and/or wellness centers should be based upon a variety of qualifying considerations, depending upon identified needs. No changes were made as a result of this comment.

Comment: Concerning the chapter as a whole, one comment recommended adding rule language to specify funding categories and stating that CSHCN program resources and funding are for CSHCN and not for general public essential public health services.

Response: The department appreciates the intent of the comment, but disagrees that additional rule language is needed. As the United States Health and Human Services Title V designee, the CSHCN program must address health concerns for children with special health care needs globally, whether they are program eligible or not. Although the CSHCN program does not fund essential public health services for the general public, some public health services are available for CSHCN eligible clients in the context of comprehensive care. The program must retain flexibility to adjust its funding categories to meet the needs of CSHCN, and a specific funding formula required by rule might prove to be too rigid or detrimental to the program's goals and objectives. No changes were made as a result of this comment.

Comment: Concerning §38.2(6)(E)(iii), one comment recommended defining "bona fide resident" as "an adult residing in Texas, including an adult whose legal guardian is a bona fide resident or who is his/her own guardian".

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.2(10), one comment stated that use of the word "several" in the definition of chronic developmental condition to describe the number of major activities of daily living which need assistance, was ambiguous.

Response: The department agrees. Quantification of activities of daily living needing assistance does not improve the definition, and the words "several of" have been deleted.

Comment: Concerning§38.2(10), one comment recommended adding the word "mental" to the definition of a chronic developmental condition.

Response: The department agrees, and has amended the definition accordingly.

Comment: Concerning §38.2(11), several comments recommended amending the definition of "chronic physical condition" in order to enhance its effective application in program eligibility determinations.

Response: The department agrees. As amended, a "chronic physical condition" is defined as "a disease or disabling condition of the body, of a bodily tissue or of an organ which will last or is expected to last for at least 12 months; that results, or without treatment, may result in limits to one or more major life activities; and that requires health and related services of a type or amount beyond those required by children generally. Such a condition may exist with accompanying developmental, mental, behavioral, or emotional conditions, but is not solely a delay in intellectual development or solely a mental, behavioral and/or emotional condition."

Comment: Concerning §38.2(23)(D) and §38.2(23)(E), several comments stated that the definition of "eligibility date" should be amended to enhance their accuracy, flexibility with regard to obtaining Medicaid and CHIP eligibility determinations, and consistency with program procedure.

Response: The department agrees. In §38.2(23)(D), medical bills that meet the requirements for spenddown are defined to include those having a date of service (DOS) "within 12 months from the date of receipt of the application, or a DOS within 12 months after the financial eligibility denial date." Also in §38.2(23)(D), the reference to "parents" has been changed to "applicant, parent(s)," and the word "legally" has been deleted. The resulting sentence, "Medical bills for any member of the household for which the applicant, parent(s), guardian or managing conservator of the CSHCN applicant is responsible may be included," now describes those medical bills that may be considered in qualifying for spenddown eligibility.

In §38.2(23)(E), "citizenship status" and "insurance coverage" have been added as exclusions, so that clients "who are known to be ineligible for Medicaid and/or the CHIP due to age, citizenship status or insurance coverage," are not required to obtain an eligibility determination from Medicaid and/or the CHIP. These amendments permit quicker processing of an application when the CSHCN program has documentation indicating that an application to Medicaid and/or the CHIP would be denied if submitted.

Comment: Concerning §38.2(27), several comments recommended changing the definition of "family" to make it consistent with definitions used in the CHIP, adding that consistency among program definitions facilitates determinations of financial eligibility comparable with those of the CHIP as well as the exchange of eligibility information between the CHIP and the CSHCN program.

Response: The department agrees. The amended definition of "family" is comparable to definitions in the CHIP rules, is more complete, and does not alter the original program intent for the purpose of determining financial eligibility.

Comment: Concerning §38.2(31), several comments suggested that grandparent(s) be added to the definition of "household," which is used in the determination of whose medical bills may be counted to meet spenddown eligibility. Since multi-generational families are common, a parent of a child with special health care needs also frequently may be responsible for the medical care of an elder parent. Those expenses would impact the ability of the family to care for the special needs child.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.2(33), one comment recommended changing the last sentence of the definition of "natural home" to replace the verb "utilizes" with "may utilize," and to add "as they are available" at the end of the sentence.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.2(36), one comment suggested revision of the definition of "permanency planning" to delete the sentence, "Permanency planning is based upon the philosophy that all children belong in a family and need permanent family relationships," and make it a clause at the end of the first sentence, more completely describing the goal of permanency planning.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.2(48), several comments recommended that the terms "applicant" or "client" replace "child," where appropriate.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.3(2)(C), one comment recommended amending the section to describe more accurately the process for determining which medical bills are included when applicants use spenddown to qualify for eligibility.

Response: The department agrees. Section 38.3(2)(C) as proposed has been designated §38.3(2)(A) and now refers to "family income", rather than "household income" and "application date" rather than "eligibility date". The phrase "within 12 months after the financial eligibility denial date" has been added to describe more completely the period during which medical bills may qualify to meet spenddown requirements.

Comment: Concerning §38.3(2)(D)(i), several comments stated that requiring clients for whom program expenditures are expected to exceed $2,000 per year to apply to Medicaid is impractical and causes unnecessary delay in determining CSHCN program eligibility. The comments also recommended exempting certain applicants from the requirement to obtain a Medicaid eligibility determination based on "medical condition" and "citizenship status" as well as age.

Response: The department agrees. Section 38.3(2)(D)(i) as proposed has been designated §38.3(2)(B)(i) and amended to include the phrase "medical condition or citizenship status" concerning clients who are not required to apply to Medicaid. Also, "eligibility criteria" replaces "limitations" in the same sentence, because it is a more accurate term. Since noncitizens are not eligible for Medicaid, except when treated in a medical emergency, nonemergency claims for services provided to noncitizens will never be paid by Medicaid. Therefore, requiring noncitizens to apply for Medicaid only serves to delay a decision on CSHCN program eligibility and creates a hardship both for clients and for their providers.

Comment: Concerning §38.3(2)(D)(ii), several comments recommended that noncitizens also should be exempt from similar program requirements that clients whose expenses exceed $2,000 per year apply for the Supplemental Security Income (SSI) program

Response: The department disagrees. Section 38.3(2)(D)(ii) as proposed has been redesignated as §38.3(2)(B)(ii), which authorizes but does not mandate that the CSHCN program "require a client for whom actual or projected expenditures exceed $2,000 per year to apply for the SSI program." Applying and qualifying for the SSI program is a more complex and lengthier process than applying for Medicaid, incorporating both medical and financial eligibility criteria. The section as amended allows flexibility without imposing constraints which are unreasonable or applicable to only a limited number of clients. No changes were made as a result of this comment.

Comment: Concerning §38.3(3)(B) and §38.3(3)(C) as proposed, several comments recommended revision such that new applicants to the program as well as clients renewing their eligibility be required to apply for available insurance coverage, including enrollment in CHIP, that program intent be clarified concerning extension of coverage while other applications may be pending, and also that appropriate exemptions for applicants or clients who did not qualify for other insurance or CHIP by reasons of age or citizenship status be allowed.

Response: The department agrees and has amended the section accordingly. The term "applicant/client" replaces "family" to describe persons to whom §38.3(3)(B) applies. The phrase "or eligibility renewal" has been added following "at the time of application" to describe the time at which the requirement applies. The clause "the applicant/client that is not exempt by reason of age or citizenship status" has been added to specify the circumstances under which obtaining insurance or CHIP coverage is not required. "Within 60 days of the date of the notification" replaces "prior to receiving CSHCN eligibility" to change the deadline for compliance. In addition to the amended deadline, the following sentence has also been added: "With verification of an application to an available health insurance plan, the program may extend this deadline and/or continue CSHCN program coverage, pending receipt of an insurance eligibility determination." The CSHCN program intends to provide coverage for otherwise qualified applicants/clients during a reasonable period of time during which another application is pending.

Section 38.3(3)(B) as proposed also has been amended by creation of §38.3(3)(C), including other amendments. "Families" has been deleted, "may provide" replaces "will provide", and program "benefits" replaces "assistance" to more accurately describe the program policies for assisting families in determining possible eligibility for other insurance and providing program benefits during application, enrollment, and/or limited or excluded coverage periods for other insurance. A sentence has been added to clarify that a family supports services plan for an applicant may not be implemented until the determination of program eligibility, including eligibility for an available insurance plan, is complete. Because potential availability of other insurance affects the elements of a family supports plan, such plans will be implemented only after the availability of other coverage has been determined.

Section 38.3(3)(C) as proposed has been redesignated §38.3(3)(D).

Comment: Concerning §38.3(9)(B)(v), one comment suggested incorporating "limitations or" into the phrase "the client's functional needs" among the information to be collected to facilitate contacting clients on the waiting list.

Response: The department agrees, and has amended the section accordingly.

Comment: Concerning §38.3(9)(C), one comment recommended that the criteria for sequencing clients on the waiting lists should be described more accurately.

Response: The department agrees. The amended phrases state that waiting list order is based on "the date and time the client's application is processed and determined eligible." Thus, applications processed for more than one client on the same date will be sequenced according to the time of data entry as well as the date.

Comment: Concerning §38.3(9)(D), one comment recommended that the subparagraph be amended by adding the following sentences: "Clients must maintain eligibility to remain on any waiting list. A lapse of eligibility constitutes loss of position on any waiting list." The comment added that waiting lists must include eligible clients only, and that the recommended language clarifies the consequence for a client on a waiting list of losing eligibility.

Response: The department agrees, and has amended the section accordingly.

Comment: Concerning §38.4(b)(3), one comment recommended addition of the phrase "but is not limited to", which will increase administrative flexibility and prevent the need for excess detail in the listing.

Response: The department agrees, and has amended the section accordingly.

Comment: Concerning §38.4(b)(3), several comments recommended adding a sentence to clarify that certain program services will be available only after the necessary automation procedures and systems become operational. The comments added that as the program transitions from reimbursement of services based on a select list of diagnoses to one which reimburses for a more comprehensive array of services provided to any client meeting the definition of a child with special health care needs, some of the operational details of claims payment may not be finalized at the time the rules become effective.

Response: The department agrees, and has amended the final sentence in the paragraph to address this contingency.

Comment: Concerning §38.4(b)(3), one comment recommended adding laboratory and radiology studies as rehabilitation services available for medical assessment and treatment.

Response: The department agrees, and has amended §38.4(b)(3)(A) to add "medically necessary laboratory and radiology studies," which accurately reflects a long-standing program policy. In addition, the phrase "but is not limited to" has been added to §38.4(b)(3), which lists included rehabilitation services.

Comment: Concerning §38.4(b)(3)(B), one comment stated that mental health "practitioners" should be defined as professionals who are licensed to provide the services noted.

Response: The department agrees, and has amended the section to include the phrase "professionals licensed to provide mental/behavioral health services, including psychiatrists, licensed psychologists, licensed master level social worker-advanced clinical practitioners, licensed marriage and family therapists, and licensed professional counselors" in lieu of "practitioners."

Comment: Concerning §38.4(b)(3)(B), one comment stated that pharmacological management visits with a physician for the purpose of medication monitoring should be considered the same as any physician visit and not as a behavioral health benefit.

Response: The department agrees, and has amended the section accordingly.

Comment: Concerning §38.4(b)(3)(E)(i)(II), several comments suggested that the 72-hour limitation for inpatient psychiatric care frequently is not adequate to provide assessment and crisis stabilization.

Response: The department agrees and has amended the section to allow admission to an inpatient psychiatric facility for up to five days. However, because this benefit is available only for assessment and crisis stabilization, the department has included a requirement for prior authorization.

Comment: Concerning §38.4(b)(3)(E)(i)(II), several comments stated that the requirement for a child psychiatrist to admit children under age 12 is too restrictive. Child psychiatrists may not always be available, especially in some rural areas of the state, and retaining the requirement jeopardizes access for some clients.

Response: The department agrees and has amended the section to require that services be "medically necessary and furnished by a Medicaid psychiatric hospital/facility under the direction of a psychiatrist."

Comment: Concerning §38.4(b)(3)(E)(i)(II), one comment stated that psychologists do not have admitting privileges for inpatient psychiatric care.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.4(b)(3)(E)(v), one comment stated that although many children may receive renal dialysis at a facility, others may receive the service at home, and should do so through a renal dialysis facility authorized to bill the CSHCN program for services or supplies.

Response: The department agrees and has amended the section to authorize provision of services "through" rather than only "at" renal dialysis facilities.

Comment: Concerning §38.4(b)(3)(G), one comment suggested that the scope of the medication benefit should be more specifically defined by inclusion of the phrase "outpatient medications available through pharmacy providers."

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.4(b)(3)(H), one comment suggested that the nutrition services and nutritional products benefit should be more accurately defined by excluding "hyperalimentation/total parenteral nutrition (TPN)" and adding a new subparagraph describing program benefits for TPN.

Response: The department agrees and has amended §38.4(b)(3)(H) accordingly. The department has added a new §38.4(b)(3)(I) to describe the hyperalimentation/total parenteral nutrition benefit.

Comment: Concerning §38.4(b)(3)(H)(i), one comment recommended deleting the phrase "and provided by a dietitian licensed by the State of Texas and enrolled as a CSHCN program participating provider," because such detail is better addressed in policy rather than in rule.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.4(b)(3)(H)(ii), one comment recommended clarifying the scope of the benefit by adding the limitation "covered by the CSHCN program," because the program does not cover an unlimited number or type of nutritional products.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.4(b)(3)(K), one comment stated concern that medically necessary examinations or eyewear might be needed in excess of the limits specified in the rule, which allows no flexibility as proposed.

Response: The department agrees. Section 38.4(b)(3)(K) as proposed has been redesignated §38.4(b)(3)(L), and the phrase, "but are not limited to," has been added to the introductory description to allow reasonable flexibility in authorizing benefits based upon medical necessity.

Comment: Concerning proposed §38.4(b)(3)(P), several comments stated that the description of home health nursing services should be amended to clarify the requirement for medical necessity.

Response: The department agrees. Section 38.4(b)(3)(P) as proposed has been redesignated §38.4(b)(3)(Q) and has been rephrased.

Comment: Concerning §38.4(b)(5)(A)(i), several comments stated that a client should be fully eligible for the program in order to receive family supports services.

Response: The department agrees and has amended the section to specify that a client must be "fully eligible." This change is consistent with the department's response to other comments concerning the need to consider the availability of other insurance in developing a family support services plan.

Comment: Concerning §38.4(b)(5)(D)(iii)(I), one comment recommended that respite services in segregated settings, such as respite facilities and camps, specified as an allowable family support service, should be limited to 30 days per annual plan year.

Response: The department disagrees that further limits on respite services are appropriate in rule. The department supports the view of many stakeholders that families, together with program case management staff, should be allowed to determine the most appropriate uses of the $3600 per client per year available for family support services. No changes were made as a result of this comment.

Comment: Concerning §38.4(b)(5)(E), one comment recommended specifying that "home mortgage or rent expenses, or basic home maintenance and repair" are not allowable family support services.

Response: The department agrees and has amended the section accordingly. Data obtained from a CSHCN program pilot project providing family support services indicates some families do not understand that routine housing expenses may not be paid as a program benefit.

Comment: Concerning proposed §38.4(b)(5)(E)(x), one comment stated that the section should more clearly define the items or services which are unallowable if paid for or reimbursed by other programs to avoid duplicating services or reimbursement.

Response: The department agrees. The department intends to pay for only those family support services or to supplement payment for only those medical benefit items that cannot or should not be paid by another health insurance program. Section 38.4(b)(5)(E)(x) as proposed has been redesignated §38.4(b)(5)(E)(xi). The department has added the phrase "medical benefit" to specify which items or services are included, and has replaced "support" programs with "health insurance" programs.

Comment: Concerning §38.4(b)(5)(F), one comment recommended adding flexibility by changing "include" to "may include."

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.4(b)(5)(F)(v), one comment suggested that the rule should specify the length of time a client may remain in a nursing facility or an institutional setting before CSHCN family support services will be terminated. The comment suggested a time period of "up to 120 days per year" as an example.

Response: The department disagrees because the section as proposed allows program case management staff and families to use judgment before making the termination decision. The department does not intend to continue family support services when a client resides in an institutional setting. However, the section as proposed authorizes occasional placement of a client in an institution for respite without termination of family support services. No changes were made as a result of this comment.

Comment: Concerning §38.4(b)(6)(C), one comment recommended adding "guardian, or their designee" to the identification of people for whom the program may provide meals and lodging when a child must be transported for medical care. The current language states that only "parents" may receive these services.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.4(c)(4), several comments recommended deletion of "care for newborn infants" from the list of medically necessary services which are not covered.

Response: The department agrees and has amended the section accordingly. Although routine inpatient postnatal care for healthy newborn infants is not a program benefit, care for children with special health care needs is a program benefit, even when for newborns. The effective date for eligibility may be the child's date of birth, except for premature infants, and the effective date of eligibility for infants who are born prematurely is defined elsewhere.

Comment: Concerning proposed §38.4(c)(6), several comments recommended adding the qualifying phrase, "except when medically necessary for the specific treatment of a covered condition."

Response: The department agrees and has amended the section accordingly. Since items and services to prevent pregnancy are available through other programs, routine pregnancy prevention is not a CSHCN program benefit. Conversely, the standard of care for some conditions found in children with special health care needs requires pregnancy prevention because a variety of adverse outcomes may occur with pregnancy, including endangering the mother and/or the unborn child due to toxicities or abnormalities.

Comment: Concerning §38.4(d)(2), one comment suggested that the circumstances in which the program may discontinue, limit, or restrict services or types of services available to all clients should be clarified by specifically including those occasions when funding limitations dictate the adjustment of reimbursement for selected procedures and/or providers.

Response: The department agrees and has added "reimbursement for services" to the actions the program may take to remain within available funding and to provide effective and efficient program administration. The department also has added the following sentence to clarify its intent: "Discontinuation, limitation, or restriction may apply to selected provider types or services and not to others."

Comment: Concerning §38.6(a)(6), several comments recommended clarification of the requirement that CSHCN program providers also must be Medicaid providers. Some CSHCN providers of covered services such as funeral homes and family support respite providers are not eligible to enroll in the Medicaid program, because no comparable Medicaid benefit exists.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.6(a)(6), several comments recommended clarification concerning the circumstances under which a provider excluded by Medicaid would be excluded by the CSHCN program. Some providers may provide CSHCN program services covered by Medicaid as well as services not covered by Medicaid. Since providers may be excluded from Medicaid for many reasons, the CSHCN program also should exclude the provider for all CSHCN program services.

Response: The department agrees and has amended the section to provide that any provider excluded by Medicaid for any reason shall be excluded by the CSHCN program.

Comment: Concerning §38.6(c)(4), one comment recommended that this provider category should be described with greater specificity.

Response: The department agrees and has amended the section as follows: "mental/behavioral health professionals, including psychiatrists, licensed psychologists, licensed master level social worker-advanced clinical practitioners, licensed marriage and family therapists, and licensed professional counselors."

Comment: Concerning §38.6(c)(15) and §38.6(c)(16), one comment suggested that these provider types should be defined more accurately.

Response: The department agrees and has amended both sections accordingly.

Comment: Concerning §38.10(1), one comment recommended inclusion of a statement which more specifically describes the circumstances under which a request to waive filing deadlines could be made, because providers must understand how the program interprets "good cause" and "exceptional circumstances."

Response: The department agrees and has added the following sentences to §38.10(1): "Waivers must be requested in writing, must identify the operational problem causing the inability to file on time, must state that the problem has been or is being resolved, and must acknowledge that the waiver request is made one-time only for the identified problem. All outstanding claims related to the identified problem must be considered at one time."

Comment: Concerning §38.10(2)(A), one comment recommended amending the section to clarify that the program will accept bills upon which the insurance company takes no action within a specified time period, as well as denied claims.

Response: The department agrees and has amended the section by adding "or nonresponse" to the title.

Comment: Concerning §38.10(2)(D), one comment recommended amending the section to clarify when the program will pay the client's deductible or co-insurance.

Response: The department agrees, and has added the phrase, "total amount paid to the provider does not exceed the maximum allowed for the covered service," in lieu of "deductible and/or coinsurance does not exceed the maximum allowable CSHCN program fee schedule in use at the time of service." This language more closely parallels that used to describe "covered services" in §38.4(b)(6)(E).

Comment: Concerning §38.10(3), one comment recommended replacing the phrase "maximum fee" with "amount." "Maximum fee" has a specific connotation for the department's claims processing contractor, and the term "amount" is not only more accurate, but also allows some flexibility in references to the various fee schedules.

Response: The department agrees and has replaced "maximum fee" with "amount" in §§38.10(3)(H), 38.10(3)(I)(i), 38.10(3)(I)(iii), 38.10(3)(L)(i), and 38.10(3)(L)(ii) as proposed. The department has also replaced "maximum fee" with "amount" in §§38.10(3)(M)(ii), 38.10(3)(Q), 38.10(3)(R), 38.10(3)(S), 38.10(3)(T), 38.10(3)(U), 38.10(3)(V)(i), 38.10(3)(V)(ii), 38.10(3)(W), 38.10(3)(X), and 38.10(3)(Y) as redesignated.

Comment: Concerning §38.10(3)(H), several comments suggested changing the description of expendable medical "supplies," because both "infusion supplies" and "other expendable medical supplies" are now reimbursed the same way, and it is no longer necessary to differentiate between them.

Response: The department agrees, and has changed the subparagraph heading to "expendable medical supplies." Proposed §38.10(3)(H)(i) and §38.10(3)(H)(ii) have been consolidated as §38.10(3)(H).

Comment: Concerning §38.10(3)(M), one comment recommended deleting seating clinics as independent sources of claims reimbursable by the program because seating clinics are now considered a part of the comprehensive service provided in the context of obtaining and fitting specialty seating systems as durable medical equipment.

Response: The department agrees and has deleted proposed §38.10(3)(M) and relettered §§38.10(3)(N) through 38.10(3)(Z) as §§38.10(3)(M) through 38.10(3)(Y).

Comment: Concerning proposed §38.10(3)(O), one comment recommended replacing "child" with "client," because adult clients as well as children may be eligible for insurance premium payment assistance.

Response: The department agrees and has amended the section accordingly. Proposed §38.10(3)(O) has been relettered as §38.10(3)(N).

Comment: Concerning §38.12(a)(1), one comment stated that the section should be amended to clarify that program eligibility or benefits may be denied, modified, suspended, or terminated if the applicant/client supplies intentionally erroneous information.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.12(a)(4), one comment stated that language should be added to specify that failure to provide a receipt for family support services payments made in advance of final purchase also constitutes cause for denial/modification/suspension/termination.

Response: The department agrees and has amended the section accordingly.

Comment: Concerning §38.13, one comment recommended that providers and clients should have the same length of time to request a fair hearing. The comment noted that providers are allowed 30 days to respond, but clients are given 20 days.

Response: The department agrees that providers and clients should have the same length of time to request a fair hearing. The department's Fair Hearing Procedures at 25 Texas Administrative Code, §§1.51-1.55 authorize both providers and clients to request a fair hearing within 20 days of receipt of the department's notice. The department has amended §38.13(a)(2) concerning appeal procedures for providers to include the same provisions as are found in §38.13(b)(2) concerning appeal procedures for clients.

Comment: Concerning §38.14(1)(D), one comment suggested that periodic client and family surveys should be required, rather than allowed.

Response: The department agrees, and has amended the section accordingly.

The comments on the proposed rules received by the department during the comment period were submitted by Advocacy, Inc. in conjunction with the Texas Council for Developmental Disabilities, by staff from the Texas Department of Mental Health and Mental Retardation, and by department staff from the Program for Amplification for Children of Texas (PACT) and the Children with Special Health Care Needs Division. The comments generally were in favor of the rules; however, they raised questions, offered comments for clarification purposes, and suggested clarifying language concerning specific provisions in the rules.

The repeals are adopted under Health and Safety Code, §§35.003, 35.004, 35.005, 35.006, 35.009, and 12.001 that provide the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

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 April 6, 2001.

TRD-200102012

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: July 1, 2001

Proposal publication date: October 27, 2000

For further information, please call: (512) 458-7236


Chapter 38. CHILDREN WITH SPECIAL HEALTH CARE NEEDS SERVICES PROGRAM

25 TAC §§38.1 - 38.15

The new sections are adopted under Health and Safety Code, §§35.003, 35.004, 35.005, 35.006, 35.009, and 12.001 that provide the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

§38.2.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Act--The Children with Special Health Care Needs Services Act, Health and Safety Code, Chapter 35.

(2)

Advanced practice nurse--A registered nurse approved by the Texas Board of Nurse Examiners to practice as an advanced practice nurse, including but not limited to a nurse practitioner, nurse anesthetist, or clinical nurse specialist.

(3)

Advisory committee--Those persons appointed by the Texas Board of Health to serve in an advisory capacity to the Children with Special Health Care Needs (CSHCN) Program staff.

(4)

Applicant--A person making application for CSHCN program services, but who has not been determined eligible.

(5)

Board--The Texas Board of Health.

(6)

Bona fide resident--A person who:

(A)

is physically present within the geographic boundaries of the state;

(B)

has an intent to remain within the state;

(C)

maintains an abode within the state (i.e., house or apartment, not merely a post office box);

(D)

has not come to Texas from another country for the purpose of obtaining medical care, with the intent to return to the person's native country;

(E)

does not claim residency in any other state or country; and

(i)

is a minor child residing in Texas whose parent(s), managing conservator, or guardian of the child's person is a bona fide resident;

(ii)

is a person residing in Texas who is the legally dependent spouse of a bona fide resident; or

(iii)

is an adult residing in Texas, including an adult whose legal guardian is a bona fide resident or who is his/her own guardian.

(7)

Case management services--Case management services include:

(A)

coordinating medical services, marshaling available assistance, serving as a liaison between the child and the child's family and care givers, sources of insurance coverage, and other services needed to improve the well-being of the child and the child's family; and

(B)

counseling for the child and the child's family about measures to prevent the transmission of AIDS or HIV and the availability in the geographic area of any appropriate health care services, such as mental health care, psychological health care, and social and support services.

(8)

Child with special health care needs--A person who:

(A)

is younger than 21 years of age and who has a chronic physical or developmental condition; or

(B)

has cystic fibrosis, regardless of the person's age; and

(C)

may have a behavioral or emotional condition that accompanies the person's physical or developmental condition. The term does not include a person who has behavioral or emotional condition without having an accompanying physical or developmental condition.

(9)

CHIP--The Children's Health Insurance Program administered by the Texas Health and Human Services Commission under Title XXI of the Social Security Act.

(10)

Chronic developmental condition--A disability manifested during the developmental period for a child with special health care needs which results in impaired intellectual functioning or deficiencies in essential skills, which is expected to continue for a period longer than one year, and which causes a person to need assistance in the major activities of daily living and/or in meeting personal care needs. For the purpose of this chapter, a chronic developmental condition must include physical manifestations and may not be solely a delay in intellectual, mental, behavioral and/or emotional development.

(11)

Chronic physical condition--A disease or disabling condition of the body, of a bodily tissue or of an organ which will last or is expected to last for at least 12 months; that results, or without treatment, may result in limits to one or more major life activities; and that requires health and related services of a type or amount beyond those required by children generally. Such a condition may exist with accompanying developmental, mental, behavioral, or emotional conditions, but is not solely a delay in intellectual development or solely a mental, behavioral and/or emotional condition.

(12)

Claim form--The CSHCN program-approved document for submitting the unpaid claim for processing and payment.

(13)

Client--A person who meets all CSHCN program eligibility requirements and is enrolled for services to be provided.

(14)

Commissioner--The Commissioner of Health.

(15)

Co-insurance--A cost-sharing arrangement in which a covered person pays a specified percentage of the charge for a covered service. The covered person may be responsible for payment at the time the health care service is provided.

(16)

Co-pay/Co-payment--A cost-sharing arrangement in which a client pays a specified charge for a specified service. The client is usually responsible for payment at the time the health care service is provided.

(17)

CSHCN program--The services program for children with special health care needs described in §38.1 of this title (relating to Purpose and Common Name).

(18)

Date of service (DOS)--The date a service is provided.

(19)

Deductible--A cost-sharing arrangement in which a client is responsible for paying a specific amount annually for covered services before an insurance carrier or plan begins to pay for covered services.

(20)

Dentist--An individual licensed by the State Board of Dental Examiners to practice dentistry in the State of Texas.

(21)

Department--The Texas Department of Health.

(22)

Diagnosis and evaluation services--The process of performing specialized examinations, tests, and/or procedures to determine whether a CSHCN program applicant has a chronic physical or developmental condition as determined by a physician or dentist participating in the CSHCN program.

(23)

Eligibility date--The effective date of eligibility for the CSHCN program is 15 days prior to the date of receipt of the application, except in the following circumstances.

(A)

The effective date of eligibility for newborns who are not born prematurely will be the date of birth. Newborn means a child 30 days old or younger.

(B)

The effective date of eligibility following traumatic injury will be the day after the acute phase of treatment ends, but no earlier than 15 days prior to the date of receipt of the application.

(C)

The effective date of eligibility for an applicant that is born prematurely will be the day after the applicant has been out of the hospital for 14 consecutive days, but no earlier than 15 days prior to the date of receipt of the application.

(D)

The effective date of eligibility for applicants with spenddown is the day after the earliest DOS on which the cumulative bills are sufficient to meet the spenddown amount, but no earlier than 15 days prior to the date of receipt of the application. Only medical bills having a DOS within 12 months from the date of receipt of the application, or a DOS within 12 months after the financial eligibility denial date may be included to satisfy spenddown requirements. Medical bills for any member of the household for which the applicant, parent(s), guardian or managing conservator of the CSHCN applicant is responsible may be included. Medical bills used to meet spenddown cannot be paid by the CSHCN program.

(E)

Excluding applications for clients who are known to be ineligible for Medicaid and/or the CHIP due to age, citizenship status or insurance coverage, all applications must include a determination of eligibility from Medicaid and/or the CHIP. If the CSHCN application is received without a Medicaid determination, a CHIP determination, or other data/documents needed to process the application, it will be considered incomplete. The applicant will be notified that the application is incomplete and given 60 days to submit the Medicaid determination, CHIP denial or enrollment, or other missing data/documents to CSHCN. If the application is made complete within the 60-day time limit, the client's eligibility effective date will be established as 15 days prior to the date the CSHCN application was first received. If the application is made complete more than 60 days after initial receipt, the eligibility effective date will be established as 15 days prior to the date the application was made complete.

(24)

Emergency--A medical condition manifesting itself by acute symptoms of sufficient severity (including severe pain) such that a prudent person with average knowledge of health and medicine could reasonably expect that the absence of immediate medical care could result in:

(A)

placing the person's health in serious jeopardy;

(B)

serious impairment to bodily functions; or

(C)

serious dysfunction of any bodily organ or part.

(25)

Emotional or behavioral condition--Behavior which varies significantly from normal, that is chronic and does not quickly disappear, and that is unacceptable because of social or cultural expectations. Emotional or behavioral responses which are so different from those of the generally accepted, age-appropriate norms of people with the same ethnic or cultural background as to result in significant impairment in social relationships, self-care, educational progress, or classroom behavior. Examples include but are not limited to the following:

(A)

an inability to build or maintain satisfactory age-appropriate interpersonal relationships with peers or adults;

(B)

dangerously aggressive, self-destructive, severely withdrawn, or noncommunicative behaviors;

(C)

a pervasive mood of unhappiness or depression; or

(D)

evidence of excessive anxiety or fears.

(26)

Facility--A hospital, psychiatric hospital, rehabilitation hospital or center, ambulatory surgical center, renal dialysis center, specialty center and/or outpatient clinic.

(27)

Family--For the purpose of this chapter, the family includes the following persons who live in the same residence:

(A)

the applicant;

(B)

those related to the applicant as a parent, step-parent or spouse who have a legal responsibility to support the applicant or guardians/managing conservators who have a duty to provide food, shelter, education, and medical care for the applicant;

(C)

children of the applicant; and

(D)

children of a parent, step-parent or spouse.

(28)

Family support services--Disability-related support, resources, or other assistance provided to the family of a child with special health care needs. The term may include services described by Part A of the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq .), as amended, and permanency planning, as that term is defined by Government Code, §531.151.

(29)

Financial independence--A person who currently files his or her own personal U.S. income tax return and is not claimed as a dependent by any other person on his or her U.S. income tax return.

(30)

Health insurance/health benefits plan--A policy or plan, either individual, group, or government-sponsored, that an individual purchases or in which an individual participates that provides benefits when medical and/or dental costs are or would be incurred. Sources of health insurance include, but are not limited to, health insurance policies, health maintenance organizations, preferred provider organizations, employee health welfare plans, union health welfare plans, medical expense reimbursement plans, the Civilian Health and Medical Program of the Uniformed Services/Veterans Administration (CHAMPUS, CHAMPVA) or their successor plans, Medicaid, the Children's Health Insurance Program (CHIP), and Medicare. Benefits may be in any form, including, but not limited to, reimbursement based upon cost, cash payment based upon a schedule, or access without charge or at minimal charge to providers of medical and/or dental care. Benefits from a municipal or county hospital, joint municipal-county hospital, county hospital authority, hospital district, county indigent health care programs, or the facilities of a medical school shall not constitute health insurance for purposes of this chapter.

(31)

Household--The living unit in which the applicant resides and which also may include one or more of the following:

(A)

mother;

(B)

father;

(C)

stepparent;

(D)

spouse;

(E)

foster parent(s), managing conservator, or guardian;

(F)

grandparent(s);

(G)

sibling(s);

(H)

stepbrother(s); or

(I)

stepsister(s).

(32)

Medical home--A source of ongoing routine health care in the community in which providers and families work as partners to meet the needs of children and families. The medical home assists in early identification of special health care needs; provides ongoing primary care; and coordinates with a broad range of other specialty, ancillary, and related services.

(33)

Natural home--The home in which the eligible person lives that is either the residence of his/her parent(s), foster parent(s) or guardian(s), or extended family member(s), or the home in the community where the person has chosen to live, alone or with other persons. A natural home may utilize natural support systems such as family, friends, co-workers, and services available to the general population as they are available.

(34)

Newborn screening--The process required by law through which newborn children are screened for congenital anomalies, including but not limited to hearing impairment, congenital adrenal hyperplasia, congenital hypothyroidism, galactosemia, phenylketonuria, and hemoglobinopathies, such as sickle cell disease.

(35)

Other benefit--A benefit, other than a benefit provided under this chapter, to which a person is entitled for payment of the costs of services provided under the CSHCN program including benefits available from:

(A)

an insurance policy, group health plan, health maintenance organization, or prepaid medical or dental care plan;

(B)

Title XVIII, Title XIX, or Title XXI of the Social Security Act (42 U.S.C. Sections 1395 et seq. , 1396 et seq. , and 1397aa et seq. ), as amended;

(C)

the Department of Veterans Affairs;

(D)

the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS);

(E)

workers' compensation or any other compulsory employers' insurance program;

(F)

a public program created by federal or state law or under the authority of a municipality or other political subdivision of the state, excluding benefits created by the establishment of a municipal or county hospital, a joint municipal-county hospital, a county hospital authority, a hospital district, or the facilities of a publicly supported medical school; or

(G)

a cause of action for the cost of care, including medical care, dental care, facility care, and medical supplies, required for a person applying for or receiving services from the department, or a settlement or judgment based on the cause of action, if the expenses are related to the need for services provided under this chapter.

(36)

Permanency planning--A planning process undertaken for children with chronic illness or developmental disabilities who reside in institutions or are at risk of institutional placement, with the explicit goal of securing a permanent living arrangement that enhances the child's growth and development, which is based on the philosophy that all children belong in families and need permanent family relationships. Permanency planning is directed toward securing: a consistent, nurturing environment; an enduring, positive adult relationship(s); and a specific person who will be an advocate for the child throughout the child's life. Permanency planning provides supports to enable families to nurture their children; to reunite with their children when they have been placed outside the home; and to place their children in family environments.

(37)

Person--An individual, corporation, government or governmental subdivision or agency, business trust, partnership, association, or any other legal entity.

(38)

Physician--A person licensed by the Texas State Board of Medical Examiners to practice medicine in this state.

(39)

Prematurity/born prematurely--A child born at less than 36 weeks gestational age and hospitalized since birth.

(40)

Program--The services program for Children with Special Health Care Needs (CSHCN).

(41)

Provider--A person and/or facility as defined in §38.6 of this chapter that delivers services purchased by the CSHCN program for the purpose of implementing the Act.

(42)

Rehabilitation services--The process of the physical restoration, improvement, or maintenance of a body function destroyed or impaired by congenital defect, disease, or injury which includes:

(A)

facility care, medical and dental care, and occupational, speech, and physical therapies;

(B)

the provision of braces, orthotic and prosthetic devices, durable medical equipment, and other medical supplies; and

(C)

other types of care specified by the board in this chapter.

(43)

Respite care--A service provided on a short-term basis for the purpose of relief to the primary care giver in providing care to individuals with disabilities. Respite services can be provided in either in-home or out-of-home settings on a planned basis or in response to a crisis in the family where a temporary care giver is needed.

(44)

Routine child care--Child care for a child who needs supervision while the parent/guardian is at work, in school, or in job training.

(45)

Services--The care, activities, and supplies provided under the Act, including but not limited to medical care, dental care, facility care, medications, durable medical equipment, medical supplies, occupational, physical, and speech therapies, rehabilitation, and other care specified by program rules.

(46)

Social service organization--For purposes of this chapter, a for-profit or nonprofit corporation or other entity, not including individual persons, that provides funds for travel, meal, lodging, and family supports expenses in advance to enable CSHCN clients to obtain program benefits.

(47)

Specialty center--A facility and staff that meets the CSHCN program minimum standards established in this chapter and are designated for CSHCN program use as part of the comprehensive services for a specific medical condition.

(48)

Spenddown--Financial eligibility achieved when household income exceeds 200% of the federal poverty level, if the applicant's family can document its responsibility for household medical bills that are equal to or greater than the amount in excess of the 200% level.

(49)

State--The State of Texas.

(50)

Supplemental Security Income Program (SSI)--Title XVI of the Social Security Act which provides for payments to individuals (including children under age 18) who are disabled and have limited income and resources.

(51)

Support--The contribution of money or services necessary for a person's maintenance, including, but not limited to, food, clothing, shelter, transportation, and health care.

(52)

Treatment plan--The plan of care for the client (time and treatment specific) as certified by and implemented under the supervision of a physician or other practitioner participating in the CSHCN program.

(53)

United States Public Health Service (USPHS) price--The average manufacturer price for a drug in the preceding calendar quarter under Title XIX of the Social Security Act, reduced by the rebate percentage, as authorized by the Veterans Health Care Act of 1992 (P.L. 102-585, November 4, 1992).

(54)

Usual and customary--The least of the following:

(A)

the customary charge, based on the provider's own historical charges;

(B)

the prevailing charge, based on the customary charges of all providers in the same geographical locality with the same medical specialty; or

(C)

the provider's actual charge.

§38.3.Eligibility for Client Services.

In order to be determined eligible for CSHCN program services, applicants must meet the medical, financial, and other criteria in this section.

(1)

Medical criteria. A physician or dentist must certify annually that the person meets the definition of "child with special health care needs" as defined by §38.2(8) of this title (relating to Definitions). The CSHCN program must receive a medical diagnosis code from the International Classification of Diseases, Ninth Revision, Clinical Modification (ICD-9-CM), or its successor, on each condition for statistical and referral purposes.

(2)

Financial criteria. Financial criteria are determined annually and are based upon the same determinations of income, family size, and disregards as the CHIP. The CHIP net income is the family's gross income minus disregards. For applicants who are not eligible for CHIP, premiums paid for health insurance may be included as an additional disregard. All families must verify their income and disregards.

(A)

The income level for eligibility is 200% of the federal poverty level. If the family income exceeds this level, and the applicant's family can document its responsibility for household medical bills incurred within 12 months of the application date or within 12 months after the financial eligibility denial date that are equal to or greater than the amount in excess of the 200% level, the applicant may be determined financially eligible for a period of 12 months beginning on the eligibility date.

(B)

Applications to Medicaid and the Supplemental Security Income (SSI) programs.

(i)

If actual or projected CSHCN program expenditures for a client exceed $2,000 per year, the client whose age, medical condition, or citizenship status do not exceed Medicaid eligibility criteria shall be required to apply for Medicaid, specifically including the Medically Needy program and, if eligible, to participate in those programs in order to remain eligible for further CSHCN program benefits. Within 60 days of the date of the notification letter, the client must submit to the CSHCN program documentation of an eligibility determination from Medicaid. During this 60-day period, CSHCN program coverage will continue. If the client does not provide documentation of an eligibility determination from Medicaid within the 60-day time limit, CSHCN program coverage shall be terminated and may not be reinstated unless an eligibility determination is received. The program may grant the client a 30-day extension to obtain the determination.

(ii)

The CSHCN program also may require a client for whom actual or projected expenditures exceed $2,000 per year to apply for the SSI program, and, if eligible, to participate in that program in order to remain eligible for further CSHCN program benefits. Within 60 days of the date of the notification letter, the client must submit to the CSHCN program verification of a timely and complete application to SSI. During this 60-day period, CSHCN program coverage will continue. If the client does not provide this verification within the 60-day time limit, CSHCN program coverage may be terminated. With verification of an application to SSI, the program may continue coverage, pending receipt of an SSI eligibility determination.

(3)

Health insurance.

(A)

All health insurance coverage insuring the applicant and/or family must be listed on the application. If insurance coverage was effective prior to CSHCN program eligibility, such coverage must be kept in force. Noncompliance with this requirement may result in the termination of CSHCN program benefits. If insurance cannot be maintained, the applicant or parent/guardian/managing conservator must, upon request, provide to the CSHCN program proof of:

(i)

cancellation from the insurer or plan sponsor;

(ii)

discontinuation of the insurance plan by the insurer or plan sponsor;

(iii)

exhaustion of the right to continue group insurance coverage as provided under federal and/or state law; or

(iv)

financial inability to continue paying the cost of any health insurance except CHIP.

(B)

If the applicant/client does not have health insurance at the time of application or eligibility renewal, but coverage may be available, including coverage under CHIP, the applicant/client that is not exempt by reason of age or citizenship status must apply for coverage and receive an eligibility determination within 60 days of the date of notification. With verification of an application to an available health insurance plan, the program may extend this deadline and/or continue CSHCN program coverage, pending receipt of an insurance eligibility determination. If the applicant/client is eligible for CHIP, the applicant/client must be enrolled in CHIP. Such insurance must be kept in force as though it were effective prior to CSHCN program eligibility.

(C)

The CSHCN program will assist in determining possible eligibility for insurance and may provide CSHCN program benefits during insurance application, enrollment, and/or limited or excluded coverage periods. A family support services plan for an applicant may not be implemented until the determination of program eligibility, including eligibility for available insurance plans is complete.

(D)

Before canceling, terminating, or discontinuing existing health insurance, or electing not to enroll a client in available health insurance, including canceling, terminating, discontinuing, or not enrolling in CHIP, the parent/guardian/managing conservator must notify the CSHCN program 30 days prior to cancellation, termination, discontinuance, or end of the enrollment period. When the CSHCN program provides assistance in keeping or acquiring health insurance, the parent/guardian/managing conservator must maintain or enroll in the health insurance.

(4)

Age. The applicant, other than one with cystic fibrosis, must be under the age of 21.

(5)

Residency. The applicant must be a bona fide resident of the State of Texas.

(6)

Application.

(A)

Applications are available to anyone seeking assistance from the CSHCN program. To be considered by the CSHCN program, the application must be made on forms currently in use.

(B)

A person is considered to be an applicant from the time that the CSHCN program receives an application. The CSHCN program will respond in writing regarding eligibility status within 30 working days after the completed application is received. Applications will be considered:

(i)

denied, if eligibility requirements are not met;

(ii)

incomplete, if required information that includes a CHIP, Medicaid, or SSI determination or any other data/document needed to process the application is not provided, or if an outdated form is submitted; or

(iii)

approved, if all criteria are met.

(C)

The denial of any application submitted to the CSHCN program shall be in writing and shall include the reason(s) for such denial. The applicant has the right of administrative review and a fair hearing as set out in §38.13 of this title (relating to Right of Appeal).

(D)

Any person has the right to reapply for CSHCN program coverage at any time or whenever the person's situation or condition changes.

(7)

Verification of information.

(A)

The CSHCN program shall make the final determination on a person's eligibility using the information provided with the application. The CSHCN program may request verification of any information provided by the applicant to establish eligibility.

(B)

The CSHCN program shall verify selected information on the application. Documentation of date of birth, residency, income, and income disregards shall be required. The CSHCN program shall notify the applicant/family in writing when specific documentation is required. It is the applicant's/family's responsibility to provide the required information.

(C)

Those clients financially eligible for CHIP, Medicaid, or other programs with similar income guidelines who also meet the age and residency requirements of the CSHCN program will be considered financially eligible. The client/family must notify the CSHCN program, if the client is no longer eligible for such programs.

(8)

Determination of continuing eligibility. Medical and financial criteria for eligibility must be re-established at least annually.

(9)

CSHCN program waiting lists.

(A)

If budgetary limitations exist, waiting lists for access to CSHCN program services may be established. Clients shall be removed from waiting lists based on the dates in subparagraph (C) of this paragraph. However, clients may also be removed from waiting lists on the basis of urgent need or the severity of illness.

(B)

In order to facilitate contacting clients on the waiting list, the CSHCN program will collect information including, but not limited to the following:

(i)

the client's name, address, and telephone number;

(ii)

the name, address, and telephone number of a contact person other than the client;

(iii)

the date of the client's earliest application for services;

(iv)

the date on which the client became eligible for services;

(v)

the client's functional limitations or needs;

(vi)

the range of services needed by the client; and

(vii)

a date on which the client is scheduled for reassessment.

(C)

Waiting lists are maintained separately for rehabilitation services and family support services, and an eligible client may receive access to either without receiving access to both.

(i)

A statewide waiting list for rehabilitation services is maintained in the CSHCN program central office, based on the date and time the client's application is processed and determined eligible for program services.

(ii)

Waiting lists for family support services are maintained in each of the department's public health regions or other designated subdivisions of the state based upon:

(I)

the date and time the client's application is processed and determined eligible for program services; or

(II)

in the case of an eligible client, the date the client requests family support services.

(D)

Waiting lists are maintained continually from one fiscal year to the next. Clients must maintain eligibility to remain on any waiting list. A lapse of eligibility constitutes loss of position on any waiting list.

(E)

Clients on waiting lists also shall be referred to other possible sources of services, and shall be contacted periodically to re-confirm their need for CSHCN program services.

§38.4.Covered Services.

(a)

Introduction. The CSHCN program provides no direct medical services, but reimburses for services rendered by CSHCN program participating providers and/or contractors. Clients must receive services as close to their home communities as possible unless CSHCN program contracts or policies require treatment at specific facilities or specialty centers and/or the clients' conditions require specific specialty care.

(b)

Types of service.

(1)

Early identification. The CSHCN program may conduct outreach activities to identify children for program enrollment, increase their access to care, and help them use services appropriately. Outreach services may include, but are not limited to:

(A)

CSHCN program promotion to the general public, or targeted to potential clients and providers;

(B)

development and distribution of educational materials to assist applicants and clients in the access and use of program services;

(C)

development and distribution of population-based educational materials concerning children with special health care needs;

(D)

integration with programs which screen for or provide treatment of newborn congenital anomalies and/or other specialty care; and

(E)

links with community, regional, and/or school-based clinics to identify, assess needs, and provide appropriate resources for children with special health care needs.

(2)

Diagnosis and evaluation services. May be covered for the purpose of determining whether a financially eligible child meets the CSHCN program definition of a child with special health care needs. Only CSHCN program participating providers may be reimbursed for diagnosis and evaluation services.

(3)

Rehabilitation services. As defined by the Act, rehabilitation services means a process of physical restoration, improvement, or maintenance of a body function destroyed or impaired by congenital defect, disease, or injury, and includes, but is not limited to: facility care, medical and dental care, and occupational, speech, and physical therapy; the provision of braces, orthotic and prosthetic devices, medications, durable medical equipment, and other medical supplies; and other types of care as specified in this chapter. To be eligible for CSHCN program reimbursement, treatment must be for a client with a chronic physical or developmental condition as specified in §38.3(1) of this title (relating to Eligibility for Client Services), and must have been prescribed by a provider in compliance with all applicable laws and regulations of the State of Texas. Services may be limited, and the availability of certain services described in the following subparagraphs is contingent upon implementation of automation procedures and systems.

(A)

Medical assessment and treatment. Medical assessment and treatment services, including medically necessary laboratory and radiology studies, must be provided by physicians and other practitioners licensed by the State of Texas, enrolled as participating providers in the CSHCN program, and within the scope of their respective licenses or registrations.

(B)

Outpatient mental health services. Outpatient mental health services are limited to no more than 30 encounters by all professionals licensed to provide mental/behavioral health services, including psychiatrists, psychologists, licensed master social worker-advanced clinical practitioners, licensed marriage and family therapists, and licensed professional counselors, per eligible client per calendar year. Coverage includes, but is not limited to psychological or neuropsychological testing, psychotherapy, psychoanalysis, counseling, and narcosynthesis.

(C)

Preventive and therapeutic dental services (including oral/maxillofacial surgery). Preventive and therapeutic dental services must be provided by licensed dentists enrolled to participate in the CSHCN program. Coverage for therapeutic dental services, including prosthetics and oral/maxillofacial surgery, follows the Texas Medicaid program guidelines. Orthodontic care may be provided only for CSHCN eligible clients with diagnoses of cleft/craniofacial abnormalities and/or late effects of fractures of the skull and face bones.

(D)

Podiatric services. Podiatric services must be provided by licensed podiatrists enrolled to participate in the CSHCN program. Coverage is limited to the medically necessary treatment of foot and ankle conditions and follows the Texas Medicaid program guidelines. Supportive devices, such as molds, inlays, shoes, or supports, must comply with coverage limitations for foot orthoses.

(E)

Treatment in CSHCN program participating facilities. Non-emergency hospital care must be provided in facilities which are enrolled as CSHCN program participating providers. The length of stay is limited according to diagnosis, procedures required, and the client's condition.

(i)

Inpatient hospital care and inpatient psychiatric care.

(I)

Inpatient hospital care. Coverage is limited to medically necessary care and excludes the following:

(-a-)

maternity care, newborn care, infertility treatment, or other reproductive services unless directly related to a covered chronic physical or developmental condition;

(-b-)

personal comfort items, such as television or newspaper delivery; and

(-c-)

private duty nursing/attendant care.

(II)

Inpatient psychiatric care. Coverage is limited to inpatient assessment and crisis stabilization and is to be followed by referral to the Texas Department of Mental Health and Mental Retardation programs or other appropriate mental health program. Admission must be prior authorized and is limited to five days. Services include those medically necessary and furnished by a Medicaid psychiatric hospital/facility under the direction of a psychiatrist.

(ii)

Inpatient rehabilitation care. Medically necessary inpatient rehabilitation care is limited to an initial admission not to exceed 30 days, based on the functional status and potential of the client as certified by a physician participating in the CSHCN program. Services beyond the initial 30 days may be approved by the CSHCN program based upon the client's medical condition, plan of treatment, and progress. Payment for inpatient rehabilitation care is limited to 90 days during a calendar year.

(iii)

Ambulatory surgical care. Ambulatory surgical care is limited to the medically necessary treatment of a client and may be performed only in CSHCN program approved ambulatory surgical centers as defined in §38.7 of this title (relating to Ambulatory Surgical Care Facilities).

(iv)

Emergency care. Care including, but not limited to hospital emergency departments, ancillary, and physician services, is limited to medical conditions manifested by acute symptoms of sufficient severity (including severe pain) such that a prudent person with average knowledge of health and medicine could reasonably expect that the absence of immediate medical care could result in placing the client's health in serious jeopardy, serious impairment to bodily functions, or serious dysfunction of any bodily organ or part. If a client is admitted to a non-participating CSHCN program hospital provider following care in that provider's emergency room, and the admitting facility declines to enroll or does not qualify as a CSHCN program provider, the client must be discharged or transferred to a participating CSHCN program provider as soon as the client's medical condition permits. All providers must enroll in order to receive reimbursement.

(v)

Renal dialysis facility. Renal dialysis is limited to the treatment of acute renal disease or chronic (end stage) renal disease through a renal dialysis facility and includes, but is not limited to dialysis, laboratory services, drugs and supplies, declotting shunts, on-site physician services, and appropriate access surgery.

(F)

Orthotic and prosthetic devices. Orthotic and prosthetic devices must be prescribed by a practitioner licensed to do so and supplied by an orthotist or prosthetist licensed by the State of Texas.

(G)

Medications. Outpatient medications available through pharmacy providers, including over-the-counter products, must be prescribed by practitioners licensed to do so. Payment shall be made only after delivery of the medications.

(H)

Nutrition services and nutritional products, excluding hyperalimentation/total parenteral nutrition (TPN).

(i)

Nutrition services. Nutrition services must be prescribed by a practitioner licensed to do so .

(ii)

Nutritional products. Nutritional products, including over-the-counter products, are limited to those covered by the CSHCN program and prescribed by a practitioner licensed to do so, for the treatment of an identified metabolic disorder or other medical condition and serving as a medically necessary therapeutic agent for life and health, or when part or all nutritional intake is through a tube.

(I)

Hyperalimentation/Total Parenteral Nutrition (TPN). A package of medically necessary services provided on a daily basis when oral intake cannot maintain adequate nutrition. TPN services include, but are not limited to solutions and additives, supplies and equipment, customary and routine laboratory work, enteral supplies, and nursing visits. Covered services must be reasonable, medically necessary, appropriate and prescribed by a practitioner licensed to do so.

(J)

Durable medical equipment. All equipment must be prescribed by a practitioner licensed to do so. Some equipment may be supplied on a contract basis, and therefore, shall be ordered from a specific supplier.

(K)

Medical supplies. Supplies must be medically necessary for the treatment of an eligible client.

(L)

Professional vision services. Vision services medically necessary for the treatment of a client include, but are not limited to:

(i)

medically necessary eye examinations with refraction for diagnoses of refractive error, aphakia, diseases of the eye, or eye surgery;

(ii)

one eye examination with refraction for the purpose of obtaining eyewear during the state fiscal year; and

(iii)

one pair of non-prosthetic eye wear per year prescribed by a practitioner licensed to do so.

(M)

Speech-language pathology/audiology. Speech-language pathology and audiology services medically necessary for the treatment of a client must be prescribed by a practitioner licensed to do so and provided by a speech-language pathologist or audiologist licensed by the State of Texas. CSHCN program coverage of speech-language pathology and audiology services may be limited to certain conditions, by type of service, by age, by the client's medical status, and whether the client is eligible for services for which a school district is legally responsible.

(N)

Audiological testing, hearing exams, and amplification devices. Services for clients under 21 years of age are coordinated through the Program for Amplification for Children of Texas (PACT). For clients 21 years of age and older and those ineligible for the PACT, covered services are the same as those available through the PACT.

(O)

Occupational and physical therapy. Occupational and physical therapy medically necessary for the treatment of a client must be prescribed by a practitioner licensed to do so and provided by a therapist licensed by the State of Texas. CSHCN program coverage of physical and occupational therapy may be limited to certain conditions, by type of service, by age, by the client's medical status, and whether the child is eligible for services for which a school district is legally responsible.

(P)

Certified respiratory care practitioner services. Respiratory therapy medically necessary for the treatment of a client must be prescribed by a practitioner licensed to do so and provided by a certified respiratory care practitioner. CSHCN program coverage of respiratory therapy may be limited to certain conditions, by type of service, by age, by the client's medical status, and whether the child is eligible for services for which a school district is legally responsible.

(Q)

Home health nursing services. Home health nursing services must be medically necessary, be prescribed by a physician, and be provided only by a licensed and certified home and community support services agency participating in the CSHCN program. Home health nursing services are limited to 200 hours per client per year. Up to 200 additional hours of service per client per year may be approved with documented justification of need and cost effectiveness.

(R)

Hospice care. Hospice care includes palliative care for clients with a presumed life expectancy of six months or less during the last weeks and months before death. Services apply to care for the hospice terminal diagnosis condition or illnesses. Treatment for conditions unrelated to the terminal condition or illnesses is unaffected. Hospice care must be prescribed by a practitioner licensed to do so who also is enrolled as a CSHCN provider.

(4)

Care management.

(A)

Medical home. Each CSHCN program client should receive care in the context of a medical home.

(i)

Comprehensive coordinated health care of infants, children, and adolescents should encompass the following services:

(I)

provision of preventive care, including but not limited to, immunizations; growth and development assessments; appropriate screening health care supervision; client and parental counseling about health care supervision; and client and parental counseling about health and psychological issues;

(II)

assurance of ambulatory and inpatient care for acute illness, 24 hours a day, seven days a week (including after hours and weekends);

(III)

provision of care over an extended period of time to enhance continuity;

(IV)

identification of the need for sub-specialty consultation and referrals, provision of medical information about the client to the consultant, evaluation of the consultant's recommendations, implementation of recommendations that are indicated and appropriate, and interpretation of the consultant's recommendations for the family;

(V)

interaction with school and community agencies to assure that the special health needs of the client are addressed; and

(VI)

maintenance of a central record and data base containing all pertinent medical information about the client, including information about hospitalizations.

(ii)

The CSHCN program may require periodic reports from the medical home.

(B)

Case management. Case management services may be made available through public health regional offices or other resources to assist families in obtaining adequate and appropriate support services related to the client's medical condition, such as referral, coordination, and follow-up.

(5)

Family support services. Family support services include disability-related support, resources, or other assistance and may be provided to the family of a client with special health care needs.

(A)

Eligibility. A client is eligible to receive family support services if:

(i)

the client is fully eligible for the CSHCN program;

(ii)

there is no waiting list for family support services;

(iii)

the client is not receiving services from a Medicaid home and community-based waiver program, and the requested service does not duplicate services received from other family support programs, such as the In-Home and Family Support program at the Texas Department of Human Services or the Texas Department of Mental Health and Mental Retardation; and

(iv)

the client's family collaborates with the assigned case manager to identify and pursue other sources of support and to develop a family support services plan.

(B)

Processing and evaluation of requests.

(i)

Families indicate their need for family support services in writing at the time of their application or renewal for the CSHCN program, or at any time during their eligibility period for the CSHCN program.

(ii)

In each public health region or other designated subdivision of the state, requests for family support services are processed in chronological order by the date of the request.

(iii)

All requests for family support services must be approved by the CSHCN program prior to delivery.

(iv)

Some services or items may require a written statement from a physician, physical therapist, occupational therapist, and/or other healthcare professional to establish the disability-related nature of the request.

(v)

Some services or items may require written bids.

(vi)

Persons requesting assistance are responsible for collaborating with their case managers as necessary so that an accurate determination can be made in a timely manner.

(vii)

Families shall be notified in writing of the outcome of their requests.

(viii)

Families have the right to appeal a decision as described in §38.13 of this title (relating to Right of Appeal).

(C)

Service plan and cost allowances.

(i)

After a client has been determined eligible and family support assistance becomes available, the case manager and the client/family develop a written plan.

(ii)

The CSHCN program may establish annual cost allowances based upon the client's/family's level of assessed need for family support services, not to exceed:

(I)

one-time assistance of up to $3,600 per eligible client for minor home remodeling; and

(II)

assistance of up to $3,600 per year per eligible client to purchase other allowable services. This limit may increase to no more than $7,200 for the purchase of vehicle lifts and modifications;

(iii)

Service plan cost allowances may be prorated for plans that cover less than one year.

(iv)

Disbursement of assistance:

(I)

may be in a lump sum or on a periodic basis;

(II)

may be made to the family or to the vendor; and

(III)

may be reduced by the amount of a cost-sharing requirement, if applicable.

(v)

Reimbursement rates for providers are established by the client/family and the selected provider in collaboration with the case manager.

(vi)

The annual service plan may be amended at any time, but will be reevaluated by the client/family and case manager at least annually to coincide with the client's reapplication for the CSHCN program.

(D)

Allowable services.

(i)

Family support services for CSHCN clients and their families include those allowable services and items that:

(I)

are above and beyond the scope of usual needs (i.e., basic clothing, food, shelter, medical care, and education);

(II)

are necessitated by the client's medical condition or disability; and

(III)

directly support the client's living in his/her natural home and participating in family life and community activities.

(ii)

Family support services may not be used to supplant services available through other public or private programs, but may be used to supplement services provided by other programs.

(iii)

Allowable services include:

(I)

respite care;

(II)

specialized child care costs for a client in excess of the prevailing rate for routine child care, including specialized training for the child care provider;

(III)

counseling or training programs or services that assist the client/family, including parent or family stipends to attend education or training conferences;

(IV)

minor home remodeling, limited to the purchase and installation of ramps, widening of doorways, the modification of bathroom facilities, kitchen modifications, and other modifications to increase accessibility and safety;

(V)

vehicle lifts and modifications consistent with those available through the Texas Rehabilitation Commission, limited to lifts, wheelchair tie-downs, occupant restraints, accessories/modifications such as raising roofs or doors if necessary for lift installation or usage, hand controls, and repairs of covered modifications not related to inappropriate handling or misuse of equipment and not covered by other resources;

(VI)

specialized equipment, including porch/stair lifts, air purification systems or air conditioners, positioning equipment, bath aids, supplies prescribed by licensed practitioners that are not covered through other systems, and other non-medical disability-related equipment that assists with family activities, promotes the client's self-reliance, or otherwise supports the family;

(VII)

other disability-related services that support permanency planning, independence, and/or participation in family life and integrated/inclusive community activities.

(E)

Unallowable services. Family support funds may not be used to provide those services that do not relate to the client's disability and do not directly support the client's living in his/her natural home and participating in family life and integrated/inclusive community activities. Examples of unallowable services include, but are not limited to:

(i)

items for which a less expensive alternative of comparable quality is available;

(ii)

purchase or lease of vehicles, or vehicle maintenance and repair;

(iii)

home mortgage or rent expenses, or basic home maintenance and repair;

(iv)

income taxes;

(v)

medical services;

(vi)

services in segregated settings other than respite facilities or camps;

(vii)

insurance premiums;

(viii)

death benefits, burial policies, and funeral expenses;

(ix)

costs for allowable services incurred before the written service plan is approved;

(x)

non-medical foods, routine shelter, routine utilities, routine home repairs, routine home appliances, routine furnishings, fences, and yard work;

(xi)

medical benefit items or services paid for or reimbursed by private insurance, Medicaid, Medicare, CHIP, the CSHCN Health Benefits Plan, or other health insurance programs for which the client is eligible;

(xii)

services, equipment, or supplies that have been denied by Medicaid, CHIP, or the CSHCN Health Benefits Plan because a claim was received after the filing deadline, insufficient information was submitted, or because an item was considered inappropriate or experimental;

(xiii)

over-the-counter or prescription medications;

(xiv)

architectural modifications to a public facility;

(xv)

school tuition or fees, or equipment/items/services that should be provided through the public school system;

(xvi)

items that could endanger the health and safety of the client;

(xvii)

routine child care;

(xviii)

computers and software, unless for use as an assistive technology device or necessary to perform a critical or essential function such as environmental control, or written or oral communication, which the client is unable to perform without the computer;

(xix)

services provided by an individual under the age of 18 years or by the client's parent(s)/guardian(s) or other member of the client's household;

(xx)

services exclusively to support the care of siblings or other members of the client's household, but which are not necessary to meet the medical needs of the client;

(F)

Reduction/termination of services. Reasons for terminating or reducing family support services may include, but are not limited to:

(i)

the client no longer meets the eligibility criteria for the CSHCN program;

(ii)

services available through the program are discontinued due to budget restrictions;

(iii)

the client's family indicates that the need for family support services no longer exists;

(iv)

the client moves out of Texas;

(v)

the client is placed in a nursing facility or other institutional setting for an indefinite period of time;

(vi)

the client dies;

(vii)

the client's designated case manager is unable to locate the client/family; or

(viii)

the family knowingly does not comply with the written service plan, in which case the family may also be liable for restitution.

(6)

Other services. The following services also are available through the CSHCN program.

(A)

Ambulance services. Emergency ground, non-emergency ground and air ambulance services are covered for the medically necessary transportation of a client. Non-emergency ambulance transport is covered if the client cannot be transported by any other means without endangering the health or safety of the client, and when there is a scheduled medical appointment for medically necessary care at the nearest appropriate facility. Transportation by air ambulance is limited to instances when the client's pickup point is inaccessible by land, or when great distance interferes with immediate admission to the nearest appropriate medical treatment facility. Transports to out-of-locality providers are covered if a local facility is not adequately equipped to treat the client. Out-of-locality refers to one-way transfers 50 miles or more from point of pickup to point of destination.

(B)

Transportation. The CSHCN program may provide transportation for a client and, if needed, a responsible adult, to the nearest medically appropriate facility. The lowest-cost appropriate conveyance should be used. The CSHCN program shall not assist if transportation is the responsibility of the client's school district or can be obtained through Medicaid.

(C)

Meals and lodging. The CSHCN program may provide meals and lodging to enable a parent, guardian, or their designee to obtain inpatient or outpatient care for a client at a facility located away from their home. The reason for the inpatient or outpatient visit must be directly related to medically necessary treatment for the client.

(D)

Transportation of deceased. The CSHCN program may provide the following services:

(i)

transportation cost for the remains of a client who expires in a CSHCN participating facility while receiving CSHCN program services, if the client was not in the family's city of residence in Texas, and the transportation cost of a parent or other person accompanying the remains;

(ii)

embalming of the deceased, if required by law for transportation;

(iii)

a coffin meeting minimum requirements, if required by law for transportation; and

(iv)

any other necessary expenses directly related to the care and return of the client's remains.

(E)

Payment of insurance premiums, coinsurance, co-payments, and/or deductibles. The CSHCN program may pay public or private health insurance premiums to maintain or acquire a health benefit plan or other third party coverage for the client, if the parent/foster parent/guardian/managing conservator is financially unable to do so, and if paying for such health insurance can reasonably be expected to be cost effective for the CSHCN program. The CSHCN program may pay for coinsurance and deductible amounts when the total amount paid to the provider does not exceed the maximum allowed for the covered service. The CSHCN program may reimburse clients for co-payments paid for covered services. The CSHCN program may not pay premiums, deductibles, coinsurance or co-payments for clients enrolled in CHIP.

(F)

Social Security Income (SSI) purchase-of-service. The CSHCN program may administer a purchase-of-service program for individuals who are determined to be SSI recipients.

(c)

Services not covered. Services which are not covered by the CSHCN program even though they may be medically necessary for and provided to a client include, but are not limited to:

(1)

treatments which are considered experimental or investigational;

(2)

chiropractic services;

(3)

care for premature infants;

(4)

care for alcohol or substance abuse;

(5)

pregnancy prevention, except when medically necessary for the specific treatment of a covered condition;

(6)

maternity care; and

(7)

infertility treatment or other reproductive services, unless directly related to a covered chronic physical or developmental condition.

(d)

Limitations.

(1)

If budgetary limitations exist, the CSHCN program may adopt a system to prioritize access to services based upon urgent need or severity of illness, which may require placing a client then receiving services on a waiting list. At the next annual eligibility determination, a client currently receiving services will be given a minimum of 30 days notice of the CSHCN program's intent to place the client on a waiting list.

(2)

With board approval, the CSHCN program may discontinue, limit, or restrict services, reimbursement for services or types of services available to all clients to remain within available funding and to provide effective and efficient administration. Discontinuation, limitation, or restriction may apply to selected provider types or services and not to others. If cutbacks in services are necessary and published notice is not required, clients and providers directly affected will be given a minimum of 30 days notice.

(e)

Service authorization. The CSHCN program may require authorization of reimbursement for selected services for clients.

(1)

Provider's responsibility. A CSHCN provider must request services in specific terms on department-prepared forms so that an authorization may be issued and sufficient monies encumbered to cover the cost of the service. If a service is authorized, payment may be made to the provider as long as the service is not covered by a third party resource, and all billing requirements are met. Program authorization should not be considered an absolute guarantee of payment.

(2)

Required prior authorization for selected services. At the CSHCN program's option, selected services may require authorization prior to the delivery of services in order for payment to be made.

(3)

Use of other benefits. The CSHCN program is the payer of last resort. The Children with Special Health Care Needs Services Act provides that any health insurance or other benefits including, but not limited to commercial health insurance, health maintenance organizations, preferred provider organizations, CHAMPUS/CHAMPVA, Medicaid or Medicaid waiver programs, CHIP, liability insurance, or worker's compensation insurance available to the client must be used prior to payment by CSHCN.

(f)

Pilot projects. The CSHCN program may initiate and participate in pilot projects to determine the fiscal impact of changes in eligibility criteria and the types of services provided. New projects are possible only if funds are available in the current fiscal year. All pilot projects are limited to no more than 10% of the fiscal year appropriation.

§38.6.Providers.

(a)

General requirements for participation. The Children with Special Health Care Needs Services (CSHCN) Act, Health and Safety Code, §35.004, authorizes the Texas Board of Health to approve physicians, dentists, podiatrists, dietitians, facilities, specialty centers, and other providers to participate in the CSHCN program according to its criteria and procedures.

(1)

Providers seeking approval for CSHCN program participation must submit a completed application to the CSHCN program or its designee, including a signed provider agreement and all documents requested on the application.

(2)

All approved CSHCN program providers must agree to abide by CSHCN program rules and regulations, and not to discriminate against clients based on source of payment.

(3)

All CSHCN program providers must agree to accept CSHCN program payment as payment in full for services. Providers may collect allowable insurance or health maintenance organization co-payments in accordance with those plan provisions.

(4)

The CSHCN program is the payer of last resort, and CSHCN program providers must agree to utilize all other benefits available to the client, including Medicaid or Medicaid waiver programs, CHIP, or Medicare, prior to requesting payment from the CSHCN program. Program providers must agree to attempt to collect payment from the payer of other benefits. The CSHCN program may pay for certain CSHCN program services for which other benefits may be available but have not been definitively determined. If other benefits become available after the CSHCN program has paid for program services, the CSHCN program shall recover its costs directly from the payer of other benefits or shall request the provider of CSHCN program services to collect payment and reimburse the CSHCN program.

(5)

Overpayments made on behalf of clients to CSHCN program participating providers must be reimbursed to the CSHCN program refund account by lump sum payment or, at the discretion of the department, in monthly installments or out of current claims due to be paid the provider. All providers must consent to on-site visits and/or audits by CSHCN program staff or its designees.

(6)

All providers of CSHCN program services also covered by Medicaid must enroll and remain enrolled as Title XIX Medicaid providers. In order to be reimbursed by Medicaid as the primary payer, a provider must be enrolled on the date of service. The CSHCN program will not reimburse an enrolled provider for any service covered under Medicaid which was provided to a CSHCN client eligible for Medicaid at the time of service. If a CSHCN program service is not covered by Medicaid, the provider of that service is not required to enroll as a Medicaid provider. Any provider excluded by Medicaid for any reason shall be excluded by the CSHCN program.

(7)

If a license or certification is required by law to practice in the State of Texas, the provider must maintain the required license or certification.

(8)

All providers shall be responsible for the actions of members of their staffs who provide CSHCN program services.

(9)

Any provider may withdraw from CSHCN program participation at any time by so notifying the CSHCN program in writing.

(b)

Denial, modification, suspension, and termination of provider approval.

(1)

The CSHCN program may deny, modify, suspend, or terminate a provider's approval to participate for the following reasons:

(A)

submitting false or fraudulent claims;

(B)

failing to provide and maintain quality services or medically acceptable standards;

(C)

not adhering to the provider agreement signed at the time of application or renewal for CSHCN program participation;

(D)

disenrollment as a Medicaid provider; or

(E)

violation of the standards of this chapter.

(2)

The CSHCN program may deny or suspend approved provider status based on the CSHCN program's knowledge of disciplinary action taken against the provider by the licensing authority under which the provider practices in the State of Texas or by the Texas Medicaid Program.

(3)

Prior to taking an action to deny, modify, suspend, or terminate the approval of a provider, the CSHCN program shall give the provider written notice of an opportunity of appeal in accordance with §38.13 of this title (relating to Right of Appeal). In addition, a fair hearing is available to any provider for the resolution of conflict between the CSHCN program and the provider.

(c)

Provider types. Approved providers include, but are not limited to:

(1)

physicians;

(2)

dentists;

(3)

advanced practice nurses;

(4)

mental/behavioral health professionals, including psychiatrists, licensed psychologists, licensed master level social worker-advanced clinical practitioners, licensed marriage and family therapists, and licensed professional counselors;

(5)

podiatrists;

(6)

hospitals;

(7)

inpatient rehabilitation centers;

(8)

ambulatory surgical centers;

(9)

renal dialysis centers;

(10)

orthotists and prosthetists;

(11)

pharmacies;

(12)

dietitians;

(13)

medical supply and/or equipment companies;

(14)

optometrists and opticians;

(15)

licensed speech-language pathologists and audiologists;

(16)

hearing aid professionals (limited to physicians and those audiologists who are fitters and dispensers and enrolled as Program for Amplification for Children of Texas providers);

(17)

occupational therapists and physical therapists;

(18)

certified respiratory care practitioners;

(19)

certified home and community support services agencies;

(20)

hospice care providers;

(21)

ambulance providers;

(22)

transportation companies or providers;

(23)

meal and lodging facilities; and

(24)

funeral homes.

(d)

Requirements for specialty centers.

(1)

The CSHCN program may accept as participating providers diagnostically specific specialty centers, such as bone marrow or other transplant centers, approved under the credentialing and/or approval standards and processes of the Texas Medicaid Program, if such specialty centers also submit a CSHCN provider enrollment application.

(2)

Other specialty center standards. The CSHCN program may establish standards to insure quality of care for children with special health care needs in the comprehensive diagnosis and treatment of specific medical conditions for specialty centers with Texas Medicaid Program separate credentialing standards as well as other specialty centers for which the Texas Medicaid Program has not established separate credentialing or approval standards for providers.

(e)

Out-of-state coverage.

(1)

Within 50 miles. Clients who would otherwise experience financial hardship or be subject to clear medical risk may be transported to medical facilities in New Mexico, Oklahoma, Arkansas, or Louisiana located within 50 miles of the Texas state border. All CSHCN program policies and procedures will apply, including the requirement that all providers be Medicaid and CSHCN program participating providers.

(2)

Outside 50 miles of the Texas state border. The commissioner of health may approve CSHCN program payment to out-of-state providers in unique circumstances in which the CSHCN program participating physician(s), the client, parent or guardian, and the CSHCN medical director agree that:

(A)

an out-of-state provider is the provider of choice for quality care;

(B)

the same treatment or another treatment of equal benefit or cost is not available from Texas CSHCN providers; and

(C)

the out-of-state treatment should result in a decrease in the total projected CSHCN program cost of the client's treatment.

(3)

The medical literature must indicate that the out-of-state treatment is accepted medical practice and is anticipated to improve the patient's quality of life.

(4)

The cost of transportation, meals, and lodging may be reimbursed for the CSHCN approved out-of-state treatment. Travel costs will be negotiated, with approval of specific travel options based on overall cost effectiveness.

§38.7.Ambulatory Surgical Care Facilities.

(a)

Ambulatory surgery services may be utilized by the CSHCN program as a cost-efficient means of providing surgical care, as long as quality of care is assured. Any hospital participating in the CSHCN program whose accreditation by the Joint Commission on Accreditation of Health Care Organizations includes hospital-sponsored ambulatory care services may provide ambulatory surgery services for CSHCN clients. Freestanding ambulatory surgical care (ASC) facilities, even if governed by or affiliated with a hospital participating in the CSHCN program, must apply for CSHCN program approval. The CSHCN program may contract with a limited number of facilities to contain program costs. For approval to participate in the CSHCN program, a freestanding ASC facility must meet the following criteria:

(1)

State licensure requirements. Facilities must comply with state licensure requirements for ambulatory surgical centers at §§135.1-135.27 of this title (relating to Operating Requirements for Ambulatory Surgical Centers).

(2)

Medicare certification. Facilities must comply with Medicare standards concerning ambulatory surgical services at 42 Code of Federal Regulations, Parts 405 and 416.

(3)

Pediatric equipment. Pediatric facilities must maintain all necessary pediatric equipment including operating room, surgical tools, resuscitation apparatus, pharmaceutical services, beds, and other supplies that are appropriate for children.

(4)

Staff requirements.

(A)

Surgical staff participating in the CSHCN program must perform all surgical procedures.

(B)

An anesthesiologist or certified registered nurse anesthetist participating in the CSHCN program must be present in the operating room for the induction and completion of anesthesia and must remain on the premises (immediately available) during the surgical procedure until the client leaves the facility.

(C)

A registered nurse with documented clinical pediatric experience must be on the premises at all times the client is in the facility.

(5)

Risk management principles. The facility must apply risk management principles to all client care.

(6)

Client transfer. The facility must have client transfer agreements with CSHCN program participating hospitals in the area.

(b)

ASC facilities seeking approval for CSHCN program participation must submit documentation concerning their compliance with the criteria stated in subsection (a)(1)-(6) of this section to the CSHCN program or its designee as required by the application process described in subsection (d) of this section.

(c)

CSHCN reimbursement for care at freestanding ASC facilities shall be limited to:

(1)

children 24 months of age or older; and

(2)

Levels I and II surgical procedures so designated by the American Society of Anesthesiologists.

(d)

Applications for approval for CSHCN program participation shall be processed according to the following procedures:

(1)

Applications will be reviewed by the CSHCN program to assure that:

(A)

all parts of the application form have been completed, including a signature and date;

(B)

all criteria for program participation have been met; and

(C)

copies of documents have been provided verifying the facility's state licensure, Medicare certification, and client transfer agreements with CSHCN program participating hospitals.

(2)

The CSHCN program shall review all complete applications and shall approve or deny each application in writing within 15 working days of receipt. An incomplete application will be returned to the applicant with an explanation of the information required. The application may be resubmitted with the required documentation for reconsideration.

(3)

Any ASC facility which disagrees with the result of the application review may appeal the decision in accordance with §38.13 of this title (relating to Right of Appeal).

(e)

Those providers that have not received any CSHCN program payment for services rendered during the prior year will be given the option of withdrawing from CSHCN program approved status, becoming inactive, or providing updated information to remain active. If updated information is not received within 60 days of the date of notification, the provider will be considered inactive. This action will not terminate a provider's approval, but the provider may be reinstated to active status only by providing current information to the CSHCN program.

(1)

Updated information may include, but is not limited to, the following:

(A)

current address, telephone number, state comptroller's vendor identification number, and administrator;

(B)

current listing of CSHCN program participating medical staff;

(C)

current listing of qualified staff or facilities available; and

(D)

Medicare certification status.

(2)

The provider will be given a current copy of CSHCN program rules to review at the time reinstatement is requested.

§38.10.Payment of Services.

The CSHCN program reimburses participating providers for covered services for CSHCN clients. Payment may be made only after the delivery of the service. Excluding allowable insurance or health maintenance organization co-payments, the client or client's family must not be billed for the service or be required to make a preadmission or pretreatment payment or deposit. Providers must agree to accept established fees as payment in full. The program may negotiate reimbursement alternatives to reduce costs through requests for proposals, contract purchases, and/or incentive programs.

(1)

Payment or denial of claims without insurance or Medicaid. All payments made on behalf of a client will be for claims received by the CSHCN program or its payment contractor within 90 days of the date of service, 90 days from the date of discharge from inpatient hospital and inpatient rehabilitation facilities, or within the submission deadlines listed under paragraph (2) of this section. Claims will either be paid or denied within 30 days. The commissioner of health may waive the filing deadlines, if program criteria for good cause and exceptional circumstances have been shown. Waivers must be requested in writing, must identify the operational problem causing the inability to file on time, must state that the problem has been or is being resolved, and must acknowledge that the waiver request is made one-time only for the identified problem. All outstanding claims related to the identified problem must be considered at one time.

(A)

Claims will be paid if submitted on the CSHCN program-approved claim form (including electronic claims submission systems), and if the required documentation is received with the claim.

(B)

Denied claims are claims which are incomplete, submitted on the wrong form, lack necessary documentation, contain inaccurate information, fail to meet the filing deadline, and/or are for ineligible recipients, services, or providers.

(i)

Corrected claims must be submitted on the CSHCN program-approved claim form along with required documentation within the filing deadline established in clause (ii) of this subparagraph.

(ii)

Denied claims may be resubmitted within 180 days of denial for consideration on appeal. If the results of this review are unsatisfactory, denied claims may be appealed according to §38.13 of this title (relating to Right of Appeal).

(2)

Claims involving health insurance coverage, CHIP or Medicaid. Any health insurance that provides coverage to the client must be utilized before the CSHCN program can pay for services. Providers must file a claim with health insurance, CHIP, or Medicaid prior to submitting any claim to the CSHCN program for payment. Claims with health insurance must be submitted to the CSHCN program within 90 days of the date of disposition by the other third party resource.

(A)

Health insurance denial or nonresponse. If a claim is denied by health insurance, the provider may bill the CSHCN program, if the letter of denial also is submitted with the claim form. If the denial letter is not available, the provider must include on the claim form the date the claim was filed with the insurance company, the reason for the denial, name and telephone number of the insurance company, the policy number, the name of the policy holder and identification numbers for each policy covering the client, the name of the insurance company employee who provided the information on the denial of benefits, and the date of the contact. If the insurance company has not responded after 110 days, the bill may be submitted to the CSHCN program.

(B)

Explanation of benefits (EOB). The health insurance EOB must accompany any claim sent to the CSHCN program for payment, if available. If the EOB is unavailable, the provider must include on the claim form the name and telephone number of the insurance company, the amount paid, the policy number, and name of the insured for each policy covering the client.

(C)

Late filing. Claims denied by health insurance on the basis of late filing will not be considered for payment by the CSHCN program.

(D)

Deductibles and coinsurance. If the client has other third party coverage, the CSHCN program may pay a deductible or coinsurance for the client as long as the total amount paid to the provider does not exceed the maximum allowed for the covered service, and conforms with current CSHCN program policies regarding third party resources, deductible, and coinsurance.

(3)

CSHCN program fee schedules. The CSHCN program or its designee shall reimburse claims for covered medical, dental, and other services according to the following fee schedules and/or methodologies.

(A)

meals, lodging, and transportation:

(i)

meals--up to the amount specified in the current State of Texas Travel Allowance Guide as per diem meal expenses;

(ii)

lodging:

(I)

hotel--the amount as contracted with the Texas Medicaid Medical Transportation Program (MTP), not to exceed the amount specified in the current State of Texas Travel Allowance Guide as per diem lodging expenses plus all applicable hotel occupancy taxes; and

(II)

Ronald McDonald House--the amount contracted with the MTP; and

(iii)

transportation:

(I)

mileage-- the distance and amount per mile as specified in the current State of Texas Travel Allowance Guide;

(II)

by contract--the amount as negotiated by the MTP with contractors such as intercity buses, vans, cabs, or urban mass transit authorities;

(III)

air fare--the ticket price reflecting the state discount if ordered by MTP, or the billed amount, if MTP had no opportunity to coordinate transportation in an emergency; and

(IV)

cab fare--the billed amount, if other transportation is unavailable, or the MTP is unable to coordinate transportation;

(B)

administrative fee to social service organizations--the percentage of the charge for meals, lodging, and transportation negotiated by the MTP with these entities;

(C)

ambulance service--the lower of the billed amount or the maximum charge allowed by the Texas Medicaid Program;

(D)

transportation of remains:

(i)

first call--$75;

(ii)

embalming--$100;

(iii)

container--$75;

(iv)

mileage billed by funeral home--$1.00 per mile; and

(v)

air freight--the billed amount;

(E)

nutritional products-the lower of the billed amount or the Average Wholesale Price (AWP) per unit according to the prices in the current edition of the Drug Topics Red Book, published by Medical Economics Company, Inc., Montvale, New Jersey 07645-1742, on file with the CSHCN program. For products not listed in the current edition of the Drug Topics Red Book, reimbursement shall be based on the same methodology using the AWP supplied by the manufacturer of the product;

(F)

nutritional services--the lower of the billed amount or the maximum charge allowed by the Texas Medicaid Program;

(G)

out-patient medications:

(i)

medications covered by Medicaid when billed by pharmacies--the same drug costs and dispensing fees allowed by the Texas Medicaid Vendor Drug Program;

(ii)

medications not covered by Medicaid when billed by pharmacies--the lower of the billed amount or the drug cost available through the database used by the Texas Medicaid Vendor Drug Program plus the same dispensing fees allowed by the Texas Medicaid Vendor Drug Program;

(iii)

medications covered by Medicaid when billed by hospitals--(the lower of the billed amount or the drug cost available through the database used by the Texas Medicaid Vendor Drug Program plus $2.28) / 0.970; and

(iv)

hemophilia blood factor products--the lower of the billed price or the United States Public Health Service (USPHS) price in effect on the date of service plus a dispensing fee of $.04 per unit of factor;

(H)

expendable medical supplies--the lower of the billed amount or the amount allowable by the United States Department of Health and Human Services, Health Care Financing Administration (HCFA), if available, or by the Texas Medicaid Program;

(I)

durable medical equipment:

(i)

non-customized--the lower of the billed amount or the amount allowable by the HCFA, if available, or the Texas Medicaid Program;

(ii)

customized:

(I)

customized, non-powered equipment--the lower of the billed amount or the manufacturer's suggested retail price (MSRP) less 18%;

(II)

power wheelchairs--the lower of the billed amount or the MSRP less 15%; and

(III)

other--when no MSRP has been published, the lower of the billed amount or the dealer's cost plus 25%; and

(IV)

delayed delivery penalty--a claim submitted for customized durable medical equipment that was delivered to the client more than 75 days after the authorization date shall be reduced by 10%;

(iii)

orthotics and prosthetics--the lower of the billed amount or the amount allowed by the HCFA, if available, or the Texas Medicaid Program;

(J)

total parenteral nutrition/hyperalimentation (including equipment, supplies and related services)--the lower of the billed amount or the maximum amount allowed by the Texas Medicaid Program;

(K)

home health nursing services (provided only through CSHCN program participating home and community support service agencies)--reimbursement for a maximum of 200 hours per client per year, with an additional 200 hours per client per year available, if justification of need and cost effectiveness are documented;

(i)

services provided by a registered nurse--the lower of the billed amount or $36 per hour;

(ii)

services provided by a licensed vocational nurse--the lower of the billed amount or $28 per hour; and

(iii)

services provided by a home health aide or home health medication aide (including those legally delegated by a supervising registered nurse)--the lower of the billed amount or $12 per hour;

(L)

outpatient physical therapy, occupational therapy, speech-language pathology, and respiratory therapy:

(i)

services provided by therapists other than physicians--the lower of the billed amount or the amount allowed by the Texas Medicaid Program; and

(ii)

services provided by physicians--the lower of the billed amount or the amount allowed by the Texas Medicaid Program;

(M)

audiological testing and amplification devices:

(i)

for clients under age 21--payment is made through the Program for Amplification for Children of Texas (PACT); and

(ii)

for clients ineligible for PACT and those age 21 and over--the lower of the billed amount or the amount allowed by PACT;

(N)

insurance premium payment assistance program--the lowest available premium for a plan which covers the client, if cost-effective;

(O)

hospital and in-patient psychiatric care--reimbursed at the rate authorized by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), which is equivalent to the hospital's Medicaid interim rate;

(P)

inpatient rehabilitation care--reimbursed at TEFRA rates, for a maximum of 90 inpatient days per calendar year;

(Q)

hospice services--the lower of the billed amount or the amount allowed by the Texas Medicaid Program;

(R)

renal dialysis services--the lower of the billed amount or the amount allowed by the Texas Medicaid Program;

(S)

freestanding ambulatory surgical centers--the lower of the billed amount or the amount allowed by the Texas Medicaid Program based upon Ambulatory Surgical Code Groupings approved by the HCFA and the Texas Department of Health;

(T)

hospital ambulatory surgical centers--the lower of the amount billed or the amount allowed by the Texas Medicaid Program based upon Ambulatory Surgical Code Groupings approved by the HCFA and the Texas Department of Health;

(U)

covered professional services by physicians, podiatrists, advanced practice nurses, psychologists, licensed professional counselors, or other providers that are not otherwise specified--the lower of the billed amount or the amount allowed by the Texas Medicaid Program;

(V)

independent laboratory--the lowest of the following:

(i)

the amount allowed by the Texas Medicaid Program state fee schedule;

(ii)

the amount allowed by the HCFA national fee schedule; or

(iii)

the billed amount;

(W)

radiology services--the lower of the billed amount or the amount allowed by the Texas Medicaid program;

(X)

dental services--the lower of the billed amount or the amount allowed by the Texas Medicaid program; and

(Y)

vision services--the lower of the billed amount or the amount allowed by the Texas Medicaid Program;

(4)

Required documentation. The CSHCN program may require documentation of the delivery of goods and services from the provider.

(5)

Overpayments.

(A)

Overpayments are payments made by the CSHCN program due to the following:

(i)

duplicate billings;

(ii)

services paid by public or private insurance or other resources;

(iii)

payments made for services not delivered;

(iv)

services disallowed by the CSHCN program; and

(v)

subrogation.

(B)

Overpayments made to providers must be reimbursed to the department by lump sum payment or, at the department's discretion, offset against current claims due to the provider for services to other clients. The department also shall require reimbursement of overpayments from any person or persons who have a legal obligation to support the client and have received payments from a payer of other benefits. Providers, clients, and person(s) responsible for clients may appeal proposed recoupment of overpayments by the department according to §38.13 of this title (relating to Right of Appeal).

§38.12.Denial/Modification/Suspension/Termination of Eligibility and/or Services.

(a)

Any person applying for or receiving benefits from the CSHCN program shall be notified in writing if the CSHCN program proposes to deny, modify, suspend, or terminate such benefits because:

(1)

the application or other requested information is intentionally erroneous or falsified;

(2)

the applicant/family does not meet financial eligibility requirements;

(3)

the person is no longer a resident of Texas;

(4)

information, including the receipt for a purchased family support service, was not provided when requested;

(5)

the applicant has a behavioral or emotional condition(s) but no physical or developmental condition(s);

(6)

a person who has received third party or liability payments and has failed to reimburse the department for services provided to the client;

(7)

the person attains the age of 21, except for adults with cystic fibrosis;

(8)

utilization review indicates inappropriate use of CSHCN program services and the client/family fails to adhere to a plan established to direct and/or supervise the use of CSHCN program services; or

(9)

CSHCN program funds are reduced or curtailed.

(b)

The CSHCN program will notify the parent/foster parent/guardian/managing conservator or the adult applicant/client in writing of the action, the reasons for the action, and the right of appeal in accordance with §38.13 of this title (relating to Right of Appeal).

§38.13.Right of Appeal.

(a)

Appeal procedures for providers.

(1)

Administrative review. If the CSHCN program intends to deny, modify, suspend, or terminate a provider's participation in the CSHCN program, the CSHCN program shall give the provider 30 days written notice of the proposed action and shall offer the provider an opportunity for an administrative review. If the provider does not respond in writing within the 30-day period, the provider is presumed to have waived the administrative review as well as access to a fair hearing. If the provider so requests, the CSHCN program will conduct an administrative review of the circumstances on which the proposed denial, modification, suspension, or termination of program participation is based and give the provider written notice of the decision and the supporting reasons within ten days of receipt of the provider's request for administrative review.

(2)

Fair hearing. If the provider is dissatisfied with the CSHCN program's decision and supporting reasons following the administrative review, the provider may request a fair hearing in writing addressed to the Children with Special Health Care Needs Program, Bureau of Children's Health, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 within 20 days of receipt of the administrative review decision notice. If the provider fails to request a fair hearing within the 20-day period, the provider is presumed to have waived the request for a fair hearing, and the CSHCN program may take final action. A fair hearing requested by a provider shall be conducted in accordance with §§1.51-1.55 of this title (relating to Fair Hearing Procedures).

(b)

Appeal procedures for clients.

(1)

Administrative review. If the CSHCN program intends to deny, modify, suspend, or terminate a client's eligibility for services, the CSHCN program shall give the client written notice of the client's right to request an administrative review of the proposed action within 30 days. If the client does not respond in writing within the 30-day period, the client is presumed to have waived the administrative review as well as access to a fair hearing, and the CSHCN program may take the proposed action. If the client so requests in writing, the CSHCN program shall conduct an administrative review concerning the circumstances on which the proposed denial, modification, suspension, or termination of the client's eligibility for services is based within ten days after receiving the request and shall give the client written notice of the decision and the supporting reasons.

(2)

Fair hearing. If the client is dissatisfied with the CSHCN program's decision and supporting reasons following the administrative review, the client may request a fair hearing in writing addressed to the Children with Special Health Care Needs Program, Bureau of Children's Health, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 within 20 days of receipt of the administrative review decision notice. If the client fails to request a fair hearing within the 20-day period, the client is presumed to have waived the request for a fair hearing, and the CSHCN program may take final action. A fair hearing requested by a client shall be conducted in accordance with §§1.51-1.55 of this title (relating to Fair Hearing Procedures).

§38.14.Development and Improvement of Standards and Services.

To ensure that cost-effective, quality, appropriate medical and related services are available and delivered to clients, the CSHCN program may establish a system of program evaluation to obtain management information about the CSHCN program's operation and effectiveness; to establish guidelines and standards for CSHCN program health care services; to monitor compliance with these established standards and guidelines; to identify and analyze patterns and trends in provider billing and service delivery; and to develop systems which promote family-centered, community-based alternatives that nurture and support children with special health care needs.

(1)

Quality assurance. The CSHCN program may establish a system of monitoring the quality, medical necessity, and effectiveness of services.

(A)

Standards and guidelines. The CSHCN program may develop standards and guidelines for services and providers reimbursed by the CSHCN program to ensure that quality services are available.

(B)

Review of services. The CSHCN program may conduct or contract for concurrent and/or retrospective review of client care services reimbursed by the CSHCN program.

(C)

Provider review. The CSHCN program may conduct periodic quality assurance reviews for provider services.

(D)

Survey of clients and families. The CSHCN program shall survey clients periodically to assess the availability, appropriateness, effectiveness, accessibility, and cultural sensitivity of provided services.

(2)

Utilization review. Utilization review will assess the appropriateness of services provided to CSHCN program clients by monitoring systems developed or contracted by the CSHCN program. Suspected fraud and abuse cases will be evaluated by the Office of the General Counsel for possible prosecution.

(3)

Task forces. The CSHCN program may establish task forces to advise the CSHCN program.

(4)

Cooperation with other agencies. The department cooperates with public and private agencies and with persons interested in the welfare of children with special health care needs. The CSHCN program will make every effort to establish cooperative agreements with other state agencies to define the responsibilities of each agency in relation to specific programs to avoid duplication of services.

(5)

Collaboration with stakeholders. The CSHCN program values the participation of all stakeholders who have an interest in children with special health care needs and will make every effort to work collaboratively with stakeholders in the design, development, and implementation of program rules and policies.

(6)

Systems development activities. The CSHCN program may conduct population-based systems development activities to improve and support the state's infrastructure for serving all children with special health care needs and their families by program staff or through contractors.

(A)

Population-based systems development activities include, but are not limited to the development and maintenance of community-based systems such as case management, parent case management, parent networks, parent resource centers, parent/provider training, voucher programs, permanency planning, or other systems that may directly or indirectly support any family in Texas with CSHCN.

(B)

The CSHCN program may establish wellness centers, which are programs and/or physical locations of community-based service organizations which provide specific support services for children with special health care needs and their families.

(i)

Community-based service organizations that serve as wellness centers may include, but are not limited to: hospitals, churches, boys/girls organizations, health centers, or school-based centers. Existing community-based service organizations that provide services to children with special health care needs and their families within a community shall receive preference in funding by the CSHCN program.

(ii)

Services provided in community-based wellness centers may include, but are not limited to:

(I)

case management or social services;

(II)

psychological services, particularly for child or family groups;

(III)

sibling support;

(IV)

dietary counseling;

(V)

recreation or fitness programs and physical conditioning;

(VI)

a meeting place for family or child groups school liaison support;

(VII)

a parent/family information or resource center;

(VIII)

parent to parent referrals and/or networking;

(IX)

health promotion education and/or training; and

(X)

family or individual health planning, including permanency planning.

(iii)

Wellness center services may include direct services as well as population-based services.

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 April 6, 2001.

TRD-200102011

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: July 1, 2001

Proposal publication date: October 27, 2000

For further information, please call: (512) 458-7236