TITLE 1.ADMINISTRATION

Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 74. CREDIT SERVICES ORGANIZATIONS

1 TAC §74.21, §74.22

The Office of the Secretary of State adopts amendments to §74.21 and §74.22, concerning the registration of credit services organizations without changes to the proposed text as published in the December 21, 2001, issue of the Texas Register (26 TexReg 10459).

The purpose of the amendment to §74.21 is to clarify that the filing fee for the renewal of a credit service organization's registration is the same as the filing fee for the initial registration. The purpose of the amendment to §74.22 is to correct the statutory reference concerning the filing of a security deposit and to clarify that, if required, security deposits must be filed for each of the credit service organization's locations. The amendment to §74.22 also clarifies that a credit services organization must use the registration form promulgated by the secretary of state. The form is readily available from the Office of the Secretary of State, and may also be downloaded from the Secretary of State's Internet site.

No comments were received concerning the proposed amendments.

The amendments are adopted under the Texas Government Code, §2001.004(1) which provides the Secretary of State with the authority to prescribe and adopt rules.

The amendments affect the Texas Finance Code, §393.101 and §393.302

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 February 7, 2002.

TRD-200200804

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Effective date: February 27, 2002

Proposal publication date: December 21, 2001

For further information, please call: (512) 475-0775


Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. MEDICAID REIMBURSEMENT RATES

Subchapter C. REIMBURSEMENT METHODOLOGY FOR NURSING FACILITIES

1 TAC §355.307

The Texas Health and Human Services Commission (HHSC) adopts an amendment to §355.307, with changes to the proposed text published in the November 16, 2001, issue of the Texas Register (26 TexReg 9346).

Justification for the amendment is to reimburse nursing facilities which have distinct pediatric units at a payment rate that reflects the spending necessary to care for children in these specialized units. To qualify as a distinct pediatric unit, a portion of a nursing facility must be physically separate from other units. The pediatric unit must consist of 28 or more Medicaid- contracted beds. A provider must request to become a member of this special class in writing by certified mail. A pediatric care facility that is a distinct unit of a nursing facility must complete a separate cost report for that unit. The payment rate for recipients in a distinct pediatric unit will be determined on a facility-specific basis and will not be based on the Texas Index for Level of Effort (TILE) payment rates. Payment rates for recipients in the remainder of the facility will be paid based on TILE payment rates. This special reimbursement class will recognize the increased costs that exist in distinct pediatric units of nursing facilities that specialize in serving children.

Section 355.307(c)(2)(A) has been revised to increase the requirement for the average daily census of a distinct pediatric unit for the six months prior to entry into the pediatric care facility class to 85% or more children for the six months. This revision also increased to 85% the required percentage of children that must be served to remain in the pediatric care facility class. In addition, §355.307(c)(2)(A) has been revised to allow written requests for entry into the pediatric care facility class be sent by special mail delivery in which the delivery can be verified, and to specify that the request must be sent to HHSC.

Comments were received from The Disability Policy Consortium; United Cerebral Palsy of Texas; Ballantrae Healthcare; and Building Bridges Network, a network of pediatric residential nursing facilities. In addition, a statement of support signed by 49 individuals for improved funding for the children residing at Pumpkin Patch at the Southland Villa Nursing Center was received. A summary of the comments and the department's responses follows:

Comment: The Texas Department of Human Services (DHS) should ensure that the pediatric care facility is in compliance with all permanency planning requirements for all children residing in the facility. The pediatric care facility must participate and complete the identification and assessment activities described by the DHS plan to implement Olmstead requirements, as directed by the Texas Health and Human Services Commission (HHSC) Promoting Independence Plan.

Response: Senate Bill 368, enacted by the 77th Legislature, requires the development of permanency plans for every child younger than 22 years of age who is either admitted to an institution or for whom institutional care is sought. DHS has proposed nursing facility rules to require uniform procedures for the development of permanency plans. In addition, DHS is developing and promoting independence policies, procedures, and guidelines. Through these DHS initiatives, the determination of compliance with the permanency planning process will be handled separately from the determination of payment for pediatric care facilities. HHSC is adopting this section without change.

Comment: HHSC should develop a policy that provides an equal amount of funding to alternate family/children's waiver services whenever there is an increase in reimbursement rate for pediatric care facilities. Additional funding provided to the facility should also be available to the children when transitioning to families under Rider 7 provisions.

Response: All eligible Medicaid nursing facility residents that transition to the community will have funding made available for their care if they meet the eligibility requirements of the community program from which they seek services. HHSC is adopting this section without change.

Comment: HHSC must carefully review if the increased spending necessary to care for the children is needed, in light of Medicaid EPSDT that is intended to provide medically necessary services to eligible children in the nursing facility. The enhanced pediatric care facility rate should include a component that requires a certain percentage of the additional funds to be allocated to direct care staff and to children with high technology support needs.

Response: The payment rate for a pediatric care facility is based on the actual cost of caring for children in the facility as captured on audited cost reports. Only allowable, reasonable, and necessary costs incurred in the provision of nursing facility care can be reported on the cost report and used to determine the individual pediatric care facility's payment rate. Any increase in spending on direct care staff or on equipment to support children with high technology support needs will be reflected in the cost reports and will be included in the payment rate determined for the facility. The services reimbursed through the pediatric care facility payment rate are separate from the services reimbursed by the EPSDT program. HHSC is adopting this section without change.

Comment: Regarding §355.307(c)(2)(A), HHSC should change the language to read, "units consisting of 28 or more beds that are filled by children under the age of 22." Without this provision, only 22 of the 28 beds are required to be filled by children under the age of 22.

Response: HHSC has revised this rule language to require a distinct pediatric unit to maintain an average daily census of 85% or more children for the six months prior to entry into the pediatric care facility class. The revision also requires a distinct pediatric unit to maintain an average daily census of 85% or more children to remain in the pediatric care facility class.

Comment: Regarding §355.307(c)(2)(A), HHSC should change the requirement that the request to be a member of the pediatric care facility special reimbursement class must be sent by certified mail. The rule should also specify to whom the notice is to be addressed.

Response: HHSC has revised this rule language to allow this request to be sent by certified mail or by special mail delivery in which the delivery can be verified. The rule language has been changed to specify that the request is to be mailed to HHSC.

The amendment is adopted under Government Code §531.033, which authorizes the HHSC commissioner to adopt rules necessary to carry out the commission's duties, and under §531.021(b), which establishes HHSC as the agency responsible for adopting reasonable rules governing the determination of fees, charges, and rates for medical assistance payments under Chapter 32, Human Resources Code.

The amendment implements Government Code §531.003 and §531.021(b).

§355.307.Reimbursement Setting Methodology.

(a) Case mix classes. The Texas Department of Human Services (DHS) reimbursement rates for nursing facilities (NFs) vary according to the assessed characteristics of recipient. Rates are determined for 11 case mix classes of service, plus a 12th, temporary classification assigned by default when assessment data are incomplete or in error.

(b) Reimbursement determination. DHS applies the general principles of cost determination as specified in §355.101 of this title (relating to Introduction).

(1) Rate Components. Under the case mix methodology, reimbursements are comprised of five cost-related components: the direct care staff component; the other recipient care component; the dietary component; the general/administration component; and the fixed capital asset component. The direct care staff component is calculated as specified in §355.308 of this title (relating to Enhanced Direct Care Staff Rate).

(A) The dietary rate component is constant across all case mix classes.

(i) For rates effective May 1, 2000, using the inflation factors used in determination of the nursing facility rates in effect January 1, 2000, project the costs in the 1998 Texas Nursing Facility Cost Report data base to the rate period beginning January 1, 2000, and ending August 31, 2000. Using these projected costs, determine the median per diem dietary cost (weighted by Medicaid days of service in the data base) in the array of allowable per diem costs for all contracted nursing facilities included in the January 1, 2000, data base, multiplied by 1.07.

(ii) For rates effective September 1, 2000, multiply the dietary per diem rate from clause (i) of this subparagraph by 1.016.

(iii) For rates effective September 1, 2001, and thereafter, the dietary component is calculated at the median cost (weighted by Medicaid days of service in the rate base) in the array of projected allowable per diem costs for all contracted nursing facilities included in the rate base, multiplied by 1.07.

(B) The general/administration rate component is constant across all case mix classes.

(i) For rates effective May 1, 2000, the general/administration rate component is equal to the difference between the general, administration, and dietary rate component in effect January 1, 2000, and the dietary rate component as calculated in paragraph (1)(A)(i) of this subsection.

(ii) For rates effective September 1, 2000, multiply the general/administration per diem rate from clause (i) of this subparagraph by 1.016.

(iii) For rates effective September 1, 2001, and thereafter, the general/administration component is calculated at the median cost (weighted by Medicaid days of service in the rate base) in the array of projected allowable per diem costs for all contracted nursing facilities included in the rate base, multiplied by 1.07.

(C) The fixed capital asset component is constant across all case mix classes.

(i) For rates effective May 1, 2000, the fixed capital asset component is equal to the fixed capital asset component in effect January 1, 2000.

(ii) For rates effective September 1, 2000, the fixed capital asset component is equal to the fixed capital asset component from clause (i) of this subparagraph multiplied by 1.016.

(iii) For rates effective September 1, 2001 and thereafter, the fixed capital asset component is calculated as follows:

(I) Determine the 80th percentile in the array of allowable appraised property values per licensed bed, including land and improvements. Appraised values for this purpose are determined as follows:

(-a-) For proprietary facilities, tax exempt facilities provided an appraisal from their local property taxing authority, and tax exempt facilities not provided an appraisal from their local property taxing authority because of an "exempt" status whose independent appraisal is in the first year of its five-year interval as described in §355.402(f)(2)(B)(ii) of this title (relating to Cost Report Requirements: 1997 and Subsequent Cost Reports), allowable appraised values are determined as described in §355.402(f) of this title (relating to Cost Report Requirements: 1997 and Subsequent Cost Reports).

(-b-) For tax exempt facilities not provided an appraisal from their local property taxing authority because of an "exempt" status whose independent appraisal is not in the first year of its five- year interval as described in §355.402(f)(2)(B)(ii) of this title (relating to Cost Report Requirements: 1997 and Subsequent Cost Reports), allowable appraised values are determined by indexing the facility's allowable appraised value as determined in §355.402(f) of this title (relating to Cost Report Requirements: 1997 and Subsequent Cost Reports) to the median increase in appraised values among contracted facilities in the state as a whole from the reporting period coinciding with the first year of the facility's five-year interval to the reporting period upon which reimbursements are to be based.

(-c-) Those facilities that do not report an allowable appraised value as described in §355.402(f) of this title (relating to Cost Report Requirements: 1997 and Subsequent Cost Reports) are not included in the array for purposes of calculating the use fee.

(II) Project the 80th percentile of appraised property values per bed by one-half the forecasted increase in the personal consumption expenditures (PCE) chain-type price index from the cost reporting year to the rate year.

(III) Calculate an annual use fee per bed as the projected 80th percentile of appraised property values per bed times an annual use rate of 14%.

(IV) Calculate a per diem use fee per bed by dividing the annual use fee per bed by annual days of service per bed at the higher of 85% occupancy, or the statewide average occupancy rate during the cost reporting period.

(V) The use fee is limited to the lesser of the fee as calculated in subclauses (I)-(IV) of this clause, or the fee as calculated by inflating the fee from the previous rate period by the forecasted rate of change in the PCE chain-type price index.

(2) Case mix classification system. All Medicaid recipients are classified according to the Texas Index for Level of Effort (TILE) classification system described in 40 TAC §19.1812 (relating to Case Mix Classification System). The TILE classification system includes four clinical categories, which are further subdivided on the basis of an activity of daily living (ADL) scale, resulting in a total of 11 TILE case mix groups. A 12th group is used by default when a recipient's case-mix group membership is indeterminate because of assessment errors or omissions. Each of the 12 case-mix groups, including the default group, is assigned a case-mix index of effort. This index indicates the relative amount of staff time required on average to deliver care to recipients in that group. The case-mix index for each of the 11 TILE groups is determined through statistical and clinical analyses of recipient resource utilization data previously collected in Texas NFs. The lowest index for the 11 TILE groups is used as the case- mix index for the default group.

(3) Per diem rate methodology. Staff determine per diem rate recommendations for each of the 11 TILE groups and for the default group according to the following procedures:

(A) Determine the statewide average case mix index for all Medicaid recipients, except those in the default group. Weight the indexes from paragraph (2) of this subsection, which are based on a sample of nursing facilities, by the estimated statewide recipient days of service by case mix group during the cost reporting period covered by the rate base and determine the weighted average. The statewide average index is based on the most recent and complete data available indicating recipient days of service by case mix group that correspond to the period covered by the cost reports included in the rate base.

(B) Determine the standardized statewide case mix index for each of the 11 TILE groups by dividing each of the indexes described under paragraph (2) of this subsection by the statewide average case mix index described under subparagraph (A) of this paragraph.

(C) The other recipient care rate component varies according to case mix class of service.

(i) For rates effective May 1, 2000, using the inflation factors used in determination of the nursing facility rates in effect January 1, 2000, project the costs in the 1998 Texas Nursing Facility Cost Report data base to the rate period beginning January 1, 2000, and ending August 31, 2000. Using these projected costs, determine the sum of other recipient care costs in all nursing facilities included in the 1998 data base. Then divide the total by the sum of recipient days of service in all facilities in the 1998 data base. Multiply the resulting weighted, average per diem cost of other recipient care by 1.07. The result is the average other recipient care rate component. To calculate the other recipient care per diem rate component for each of the 11 TILE case mix groups and for the default group, multiply each of the standardized statewide case mix indexes used in determination of the nursing facility rates in effect January 1, 2000, by the average other recipient care rate component.

(ii) For rates effective September 1, 2000, multiply the average other recipient care per diem rate from clause (i) of this subparagraph by 1.016. To calculate the other recipient care per diem rate component for each of the 11 TILE case mix groups and for the default group, multiply each of the standardized statewide case mix indexes used in determination of the nursing facility rates in effect January 1, 2000, by the average other recipient care rate component.

(iii) For rates effective September 1, 2001, and thereafter, the average other recipient care rate component is calculated as follows. Adjust the raw sum of other recipient care costs in all nursing facilities included in the rate base in order to account for disallowed costs and inflation, as specified in §355.306 of this title (relating to Cost Finding Methodology). Then divide the adjusted total by the sum of recipient days of service in all facilities in the current rate base. Multiply the resulting weighted, average per diem cost of other recipient care by 1.07. The result is the average other recipient care rate component. To calculate the other recipient care per diem rate component for each of the 11 TILE case mix groups and for the default group, multiply each of the standardized statewide case mix indexes from subparagraph (B) of this paragraph by the average other recipient care rate component.

(D) Total case mix per diem rates vary according to case mix class of service and according to participant status in the Enhanced Direct Care Staff Rate described in §355.308 of this title (relating to Enhanced Direct Care Staff Rate).

(i) For each participating facility, for each of the 11 TILE case mix groups and for the default group, the recommended total per diem rate is the sum of the following five rate components:

(I) the dietary rate component from paragraph (1)(A) of this subsection;

(II) the general/administration rate component from paragraph (1)(B) of this subsection;

(III) the fixed capital asset use fee component from paragraph (1)(C) of this subsection;

(IV) the case mix group's other recipient care per diem rate component by case mix group from paragraph (3)(C) of this subsection; and

(V) the case mix group's total direct care staff rate component for that participating facility as determined in §355.308 of this title (relating to Enhanced Direct Care Staff Rate).

(ii) For nonparticipating facilities, for each of the 11 TILE case mix groups and for the default group, the recommended total per diem rate is the sum of the following five rate components:

(I) the dietary rate component from paragraph (1)(A) of this subsection;

(II) the general/administration rate component from paragraph (1)(B) of this subsection;

(III) the fixed capital asset use fee component from paragraph (1)(C) of this subsection;

(IV) the case mix group's other recipient care per diem rate component by case mix group from paragraph (3)(C) of this subsection; and

(V) the case mix group's total direct care staff rate component for non-participants as determined in §355.308 of this title (relating to Enhanced Direct Care Staff Rate).

(E) Qualifying ventilator-dependent residents may receive a supplement to the per diem rate specified in subparagraph (D) of this paragraph.

(i) To qualify for supplemental reimbursement, a resident must require artificial ventilation for at least six consecutive hours daily and the use must be prescribed by a licensed physician.

(ii) A ventilator-dependent resource differential case mix index is calculated, based on time- study research data. This resource differential index reflects the difference between direct nursing services for ventilator-dependent residents and services for residents in the most severe heavy-care TILE group.

(I) The per diem rate supplement for participants in the Enhanced Direct Care Staff Rate described in §355.308 of this title (relating to Enhanced Direct Care Staff Rate) is calculated by multiplying the resource differential case mix index times the per diem average other recipient care rate component, as described in paragraph (3)(C) of this subsection and by the average direct care staff rate component for participating facilities staffing at the minimum levels required for participation as described in §355.308(l) of this title (relating to Enhanced Direct Care Staff Rate) and summing the products.

(II) The per diem rate supplement for non-participants in the Enhanced Direct Care Staff Rate described in §355.308 of this title (relating to Enhanced Direct Care Staff Rate) is calculated by multiplying the resource differential case mix index times the per diem average other recipient care rate component, as described in paragraph (3)(C) of this subsection and by the average direct care staff rate component for non-participating facilities as described in §355.308(k) of this title (relating to Enhanced Direct Care Staff Rate) and summing the products.

(iii) The supplemental reimbursement for residents requiring continuous artificial ventilation is 100% of the per diem ventilator rate supplement.

(iv) The supplemental reimbursement for residents not requiring continuous artificial ventilation daily but requiring artificial ventilation for at least six consecutive hours daily is 40% of the per diem ventilator rate supplement.

(F) Qualifying children with tracheostomies requiring daily care may receive a supplement to the per diem rate specified in subparagraph (D) of this paragraph.

(i) To qualify for supplemental reimbursement, a resident must be less than 22 years of age; require daily cleansing, dressing, and suctioning of a tracheostomy; and be unable to do self care. The daily care of the tracheostomy must be prescribed by a licensed physician.

(ii) The supplemental reimbursement for children receiving daily tracheostomy care is 60% of the per diem ventilator rate supplement as specified in subparagraph (E) of this paragraph.

(G) Children with qualifying conditions as specified in subparagraphs (E) and (F) of this paragraph may receive only one of the supplemental reimbursements. Therefore, children with tracheostomies who are also ventilator-dependent are not eligible to receive both supplemental reimbursements.

(4) Case mix classification effective periods. The effective periods of case mix classifications are defined as follows.

(A) A recipient's case mix classification and associated per diem rate payment remain in effect until the recipient's next required assessment, unless one of the following events takes place:

(i) a provider submits an off-cycle assessment as specified in 40 TAC §19.2412(a)(5) (relating to Texas Index for Level of Effort (TILE) Assessments);

(ii) a DHS nurse reviewer revises the recipient's assessment and TILE classification under the provisions of 40 TAC §19.2412(b) (Texas Index for Level of Effort (TILE) Assessments); or

(iii) the recipient is discharged from the Medicaid nursing facility vendor payment system for more than 30 days prior to receiving a permanent medical necessity determination.

(B) The case mix classification and associated per diem payment rate of a recipient in the default group are changed retroactively when the provider furnishes DHS with corrected data that permit classification in one of the 11 TILE case mix groups.

(c) Special reimbursement class. HHSC may define special reimbursement classes, including experimental reimbursement classes of service to be used in research and demonstration projects on new reimbursement methods and reimbursement classes of service, to address the cost differences of a select group of recipients. Special classes may be implemented on a statewide basis, may be limited to a specific region of the state, or may be limited to a selected group of providers.

(1) Pediatric Care Facility Class. The purpose of this special class is to recognize, through the adoption of a facility-specific payment rate, the cost differences that exist in a nursing facility or distinct unit of a nursing facility that serves predominantly children.

(2) Definitions.

(A) Pediatric care facility--A pediatric care facility is an entire facility that has maintained an average daily census of 80% or more children for the six-month period prior to its entry into the pediatric care facility class based on the entire licensed facility. A pediatric care facility can also be a distinct unit of a facility that has maintained an average daily census of 85% or more children for the six-month period prior to its entry into the pediatric care facility class based on the distinct unit of the facility. To remain a pediatric care facility, the pediatric care facility must maintain an average daily census of 80% or more children if the pediatric care facility is an entire facility and 85% or more children if the pediatric care facility is a distinct unit of the facility. The contracted provider must request in writing by certified mail or by special mail delivery where the delivery can be verified to become a member of the pediatric care facility special reimbursement class. The request must be sent to the Texas Health and Human Services Commission.

(B) Distinct unit--A portion of a nursing facility that is physically separate from (beds are not commingled with) other units of the facility. The distinct unit can be an entire wing, a separate building, an entire floor, or an entire hallway. The distinct unit consists of all beds within the designated area. A distinct unit must consist of 28 or more Medicaid-contracted beds.

(C) Children--For the purposes of this pediatric care facility class, children are defined as being at or below 22 years of age.

(3) Payment rate determination. Payment rates will be determined in the following manner:

(A) Cost reports and payment rate determination for pediatric care facilities are governed by the requirements specified in Subchapter A of this chapter (relating to Cost Determination Process). A nursing facility that contains a pediatric care facility distinct unit must complete two cost reports: one report for the pediatric care facility distinct unit and one report for the remainder of the facility.

(B) Payment rates for this class of service will be determined on a facility-specific basis for the pediatric care facility. The total allowable costs from the most recent cost report deemed acceptable are adjusted for inflation from the cost report period to the rate period. The adjusted cost is divided by the greater of total patient days of service reported on the cost report or the days of service at 85% of contracted capacity of the pediatric care facility. The resulting cost per day is multiplied by a factor of 1.03 to determine the final facility-specific rate. If no acceptable cost report is available, the provider will be required to submit a cost report covering the time period specified by HHSC.

(C) The facility-specific payment rate from paragraph (3)(B) of this subsection will be paid for all Medicaid residents of a qualifying pediatric care facility regardless of the TILE level of the resident.

(D) Residents of the pediatric care facility will not be eligible to receive the ventilator-dependent or the children-with-tracheostomies supplemental reimbursements.

(E) Pediatric care facilities are not eligible to participate in §355.308 (relating to Enhanced Direct Care Staff Rate).

(d) Nurse aide training and competency evaluation costs.

(1) DHS reimburses nursing facilities for the actual costs of training and testing nurse aides as required under the Omnibus Budget Reconciliation Act of 1987 (OBRA '87). Payments are based on cost reimbursement vouchers that are to be submitted quarterly. Allowable costs are limited to those costs incurred for training provided after October 1, 1990, for:

(A) actual training course expenses up to a set amount determined by DHS per nurse aide;

(B) competency evaluation; or

(C) supplies and materials used in the nurse aide training not already covered by the training course fee.

(2) Nurse aide salaries while in training are factored into the vendor rate and are not to be included on the reimbursement voucher.

(3) Training program costs that exceed the DHS cost ceiling must have prior approval from DHS before costs can be reimbursed. A written request to Provider Billing Services must include:

(A) name and vendor number of facility.

(B) description of training program for which the facility is seeking reimbursement approval, to include:

(i) name, telephone number and address of the nurse aide training and competency evaluation program (NATCEP);

(ii) whether the NATCEP program is facility or non-facility-based; and

(iii) name of the NATCEP program director.

(C) an explanation of why the cost for the NATCEP exceeds the reimbursement ceiling. The explanation must include:

(i) a completed nurse aide unit cost calculation form for a facility-based NATCEP; or

(ii) a breakdown of the nurse aide unit cost by the instructor fees and training materials for a non-facility-based NATCEP.

(D) an explanation of why the nursing facility cannot utilize a training program at or below the reimbursement ceiling and what steps the facility has taken to explore more cost efficient training courses. The explanation must include:

(i) the availability of NATCEPs, such as the location or the frequency of training offered, in the geographic region of the facility;

(ii) the name and address of each NATCEP that the facility has explored as a provider of nurse aide training; and

(iii) the cost per nurse aide for each NATCEP identified in clause (i) of this subparagraph, as specified in subparagraph (C)(i) of this paragraph or subparagraph (C)(ii) of this paragraph.

(4) All prior approval requests as outlined in paragraph (3) of this subsection must be submitted to DHS, Provider Billing Services that:

(A) may request additional information in order to evaluate a reimbursement request; and

(B) will make the final decision on a reimbursement request.

(5) All nurse aide training courses must be approved by DHS before costs associated with them can be reimbursed.

(6) Nursing facilities are responsible for tracking and documenting nurse aide training costs for each nurse aide trained. All documentation is subject to DHS audits. If substantiating documentation for amounts billed to DHS cannot be verified, DHS will immediately recoup funds paid to the facility.

(7) Individuals who have successfully completed a nurse aide training and competency evaluation program (NATCEP) may be directly reimbursed for costs incurred in completing a NATCEP. The individual must meet all of the conditions specified in subparagraphs (A)-(E) of this paragraph.

(A) The individual must not have been employed at the time of completing the NATCEP.

(B) The individual must have been employed by, or received an offer of employment from, a nursing facility not later than 12 months after successfully completing the NATCEP.

(C) The individual must have been employed by the facility for no less than six months.

(D) The nursing facility must not have claimed reimbursement for training expenses for the individual.

(E) The individual must be listed on the current Nurse Aide Registry.

(8) Individuals must submit cost reimbursement vouchers to DHS with proof that the individual has been employed by a facility for no less than six months.

(9) Individuals who leave nursing facility employment before accruing the required six months of employment, as specified in paragraph (7)(C) of this subsection, may receive 50% reimbursement as long as the individual was employed for no less than three months.

(10) Reimbursement to individuals may not exceed the reimbursement ceiling as detailed in paragraph (1)(A) of this subsection.

(e) Oxygen costs. Oxygen costs incurred on or after January 1, 1995, will not be reimbursed on cost reimbursement vouchers. Those oxygen costs must be reported as expenses on the cost report.

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 February 6, 2002.

TRD-200200798

Marina Henderson

Executive Deputy Commissioner

Texas Health and Human Services Commission

Effective date: February 26, 2002

Proposal publication date: November 16, 2001

For further information, please call: (512) 438-3734