TITLE 25.HEALTH SERVICES

Part 1. TEXAS DEPARTMENT OF HEALTH

Chapter 34. WAIVER PROGRAM FOR MEDICALLY DEPENDENT CHILDREN

25 TAC §34.3

Subject to the approval of the State Medicaid director, the Texas Department of Health (department) proposes an amendment to §34.3, concerning the deinstitutionalization of children from nursing facilities into the Medically Dependent Children Program (MDCP). The purpose of the proposed amendment will redefine the population that may access existing MDCP services.

The proposed amendment will allow the department to move eligible children from institutions to home and community settings, if the parents choose this option. The proposed amendment to §34.3 refers to an agreement between the Texas Department of Human Services and the department to support the placement of current or prior resident children from Texas nursing facilities into permanent placement in their homes or community settings. The children targeted under this provision will have been in placement for continuous institutional long-term care purposes. The provision excludes institutional placements that are for respite purposes or the treatment of an acute condition.

The proposed amendment to §34.3(c) resulted from the recognition that current MDCP deinstitutionalization rules are constraining, due to the four-month residency requirement.

David Cook, Director of Programs, Administration and Management, Texas Department of Human Services (TDHS), has determined for the first five years this proposed section is in effect, there will be potential fiscal implications to the state government as a result of administering the sections as proposed. The effect on state government will mean projected costs to the state of $46,338, $47,848, $49,283, $50,762, and $52,285 in state fiscal years 2002, 2003, 2004, 2005, and 2006 respectively, for a total of $246,516 over these five years for approximately thirty children. This fiscal note was calculated and submitted by TDHS since the deinstitutionalization funding for the potential 30 slots will be provided by TDHS per the agreement between agencies.

Lee Johnson, Acting Director, Division of Financial Management, Associateship for Family Health, Texas Department of Health, has determined that for fiscal years 2002 through 2006, for each child who is deinstitutionalized, there may be a fiscal impact each year ranging from a cost of up to $17,155 in state general revenue per child per year to a savings of up to $8,846 per child per year. Mr. Johnson has determined that for the first five-year period the amended section is in effect, there will be no fiscal implications to local government as a result of administering the section as proposed.

Mr. Johnson has also determined that for each of the first five years the section is in effect, the public benefits as a result of enforcing this section will be that more families in Texas will be able to keep their children in their own home or community setting. There may be a positive economic effect on microbusinesses or small businesses in that nurses, home and community support agencies, and other qualifying providers of community-based care will gain revenue once a child is deinstitutionalized, up to an estimated $104,549 per child in a 12-month period. There may however be an adverse economic effect on microbusinesses or small businesses in that any nursing facility that qualifies as a small or microbusiness will lose revenue once a child is removed from the facility to a home or community setting. The adverse economic impact could reach an estimated $88,120 per child in a 12-month period. There are no economic costs to persons other than the families of the children who participate. There is no anticipated impact on local employment.

Comments on the proposal may be submitted in writing to Susan Penfield, M.D., Bureau of Children's Health, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756, by FAX at (512) 458-7238, or by telephone at 1-800-252-8023 or (512) 458-7111, extension 3104. Comments will be accepted for 30 days following publication of this proposal in the Texas Register .

The amendment is proposed under the Social Security Act, §1915(c) relating to Medicaid waiver programs for home or community based services; Chapter 15, §1.07, Acts of the 72nd Legislature, First Called Session (1991), as amended by Chapter 747, Actions of the 73rd Legislature (1993) which authorizes the Texas Board of Health (board) to adopt rules necessary to administer the MDCP; and the Health and Safety Code §12.001, which provides the board with authority to adopt rules to implement every duty imposed by law on the board, the department, and the commissioner of health.

This proposed amendment affects Chapter 32 of the Human Resources Code.

§34.3.Participant Eligibility Criteria.

(a) - (b) (No change.)

(c) Deinstitutionalization.

(1) For purposes of this section, "deinstitutionalization" refers to an interagency agreement between the Texas Department of Human Services and the Texas Department of Health to support the permanent placement of current and previous resident children of Texas nursing facilities into their homes and community settings. The children targeted under this provision will have been in placement for continuous institutional long-term care purposes.

(2) "Placement for continuous institutional long term care purposes," refers to placement and subsequent residence in an institution for the purpose of meeting a registrant's ongoing needs when the child's needs cannot be met in the home on an ongoing basis. This excludes respite placements and placements for treatment of acute episodes.

(3) An MDCP interest/waiting list registrant may be considered for deinstitutionalization into MDCP at any time since September 1, 1995 if the registrant:

(A) has resided in a Texas nursing facility for continuous institutional long term care purposes; or

(B) has resided in another Texas institution, (i.e., an ICF-MR, hospital, long-term acute care setting), for continuous institutional long term care purposes, followed by residence in a Texas nursing facility.

[ (1) Any MDCP registrant who has resided in a Texas nursing facility for at least four months since September 1, 1995, may be considered for deinstitutionalization into MDCP under §34.3; however, if, prior to residency in a Texas nursing facility, the child resided in another institution in Texas for long term care purposes, that time in the other institution may count towards the four months of residency in a Texas nursing facility for purposes of this section; and further, preference for access to these slots may be given to those children who were residing in a Texas nursing facility prior to the effective date of the rules, if: ]

(C) [ (A) ] has been determined to be Medicaid eligible; and

(D) [ (B) ] has met all of the criteria in subsection (b) of this section.

(4) [ (2) ] The names of qualified individuals applying for nursing facility deinstitutionalization shall be maintained on a waiting list separate from that for other MDCP registrants.

(5) [ (3) ]An individual applying for nursing facility deinstitutionalization under MDCP shall become eligible for waiver services under this subsection if:

(A) a vacancy designated for qualified individuals under this subsection exists within the waiver; and

(B) the individual's Texas Index for Level of Effort (TILE) funding is available to be allocated for home and community-base services.

(d) - (i) (No change.)

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

Filed with the Office of the Secretary of State, on June 29, 2001.

TRD-200103723

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: August 12, 2001

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