TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 4. MEDICAID PROGRAMS--CHILDREN AND PREGNANT WOMEN

Subchapter A. ELIGIBILITY REQUIREMENTS

40 TAC §§4.1002, 4.1012, 4.1016

The Texas Department of Human Services (DHS) adopts amendments to §§4.1002, 4.1012, and 4.1016 in its Medicaid Programs--Children and Pregnant Women chapter to the proposed text published in the November 23, 2001, issue of the Texas Register (26 TexReg 9467). Section 4.1012 is adopted with changes, and §4.1002 and §4.1016 are adopted without changes to the proposed text, and will not be republished.

DHS received 30 written comments from Advocacy Inc., the Center for Public Policy Priorities, the Children's Defense Fund Texas, the Children's Hospital Association of Texas, the Consumers Union, the Dallas Region Texcare Partnership Outreach Coalition, the Gulf Coast Children's Health Insurance Program, Seton Healthcare Network, the Texas Association of Health Plans, the Texas Department of Health, the Texas State Employees Union, the Texas Hospital Association, the Texas Medical Association, the Texas Welfare Reform Organization, Texas Rural Legal Aid, Inc., and two individuals. An additional nine oral comments were received at a public hearing on December 14, 2001. Almost all commentors indicated the rules should be simple, client-friendly, and result in improved access for children to health care coverage. A summary of the comments and the department's responses follows.

Comment: Commentors said the proposed rules are too restrictive concerning the health care orientation and Texas Health Steps requirements; could result in parents being wrongly penalized due to the limitations of Texas' Medicaid data system; and should refer to an operations manual cited in the rule language.

Response: We have attempted to address these concerns by allowing the parent to self-declare compliance with the health care orientation and Texas Health Steps requirements. We also have allowed these requirements to be met if the parent has not yet had the orientation or Texas Health Steps checkup but self-declares they are scheduled for one. Additionally, we have included the ability for the parent to claim good cause for not having complied with these requirements. Good cause may include reasons such as lack of transportation, lack of available providers, illness, or other medical conditions that conflict with work hours and other similar reasons.

Comment: Commentors said Senate Bill (SB) 43 does not mandate a penalty for parents who fail to comply with the health care orientation and Texas Health Steps requirements. They said the law simply requires parents to receive an orientation and ensure their children are up-to-date with checkups. They also advocated eliminating the specified time frames for compliance with the health care orientation and Texas Health Steps requirements and provisions related to face-to-face interviews when these requirements are not met. Instead, the timeframe and face-to-face interview provisions should be contained in an operating guide. This operating guide should be referenced in the rule language.

Alternatively, commentors recommended phasing in the face-to-face interview requirement after efforts have been made to expand the number of providers, improve data/reporting systems, and encourage families to obtain health care orientations and Texas Health Steps checkups.

Response: Staff agree with eliminating the specified time frames for compliance with the health care orientations and Texas Health Steps requirements and recommends the rules be clarified to delete references to specific time frames and to reference DHS Medicaid simplification operating guidelines.

Based on the transcript of the House floor debate regarding SB 43, we do not believe we can recommend eliminating the face-to-face interview if these requirements are not met.

Comment: Commentors said parents should not be penalized for situations outside of their control, such as: 1) they cannot get the required health care orientation because the state has not made it easily accessible; 2) Texas Medicaid data systems cannot provide accurate information about checkups; 3) they lack transportation; 4) they cannot find a doctor or clinic to deliver a checkup; or 5) they cannot obtain an appointment during the times when they are off work.

Response: We have attempted to address these concerns by allowing the parent or guardian to self-declare they have complied with the health care orientation or Texas Health Steps requirements. We also have allowed these requirements to be met if the parent has not yet had the orientation or Texas Health Steps checkup but self-declares they are scheduled for one. Additionally, we have included the ability for the parent to claim good cause for not having complied with these requirements. Good cause may include reasons such as lack of transportation, lack of available providers, illness, or other medical conditions that conflict with work hours and other similar reasons.

Comment: Commentors recommended an SB 43 operations manual, which would describe all processes related to Medicaid simplification, including the roles of HHSC, the Texas Department of Health, DHS, and any other party involved. They said the manual should encompass all topics included in the Proposed Implementation Outline, including topics added as a result of the comment process on the proposed rules. They also said the manual should be available free of charge on the HHSC web page and updated regularly as it would not be subject to the notice and comment requirements that apply to rules under the Texas Administrative Code.

Response: We recommend the rule language be clarified to cite DHS operating guidelines and specify that these guidelines will be published and available to the public free of charge and updated regularly to reflect procedural changes. Because DHS cannot establish rules for other agencies, we are unable to include references to a guide that sets requirements for other agencies in our rule base as suggested. The Texas Health and Human Services Commission has, however, published an SB 43 implementation plan on its web site that details the policies and procedures across agencies.

In addition to specific comments concerning rule language, some commentors also mentioned: 1) advocacy for the creation of a task force to implement and monitor the operating guidelines; 2) concern that the number of state employees should not be reduced as a result of Medicaid simplification; 3) concern that DHS can adequately train all staff who will implement the policy; 4) concern that the Texas Department of Health will have enough staff to conduct the health care orientations; 5) the need to expand the Medicaid provider base; 6) the need to invest in medical transportation options for Medicaid recipients; 7) stronger linkage of Texas Health Steps exam to a medical home; 8) elimination of the separate enrollment process for Medicaid and Texas Health Steps for providers; 9) increase funding for outreach materials, as well as a consumer-friendly Medicaid information booklet to be given to recipients at the health care orientation; 10) implementation of this policy on a statewide basis versus allowing regional flexibility; 11) that policies and operating guidelines should not be revised absent of a fair opportunity for advocates to review and provide input; and 12) concern that the state of Texas lacks legal recourse/protection for Medicaid recipients, as recipients do not have ability to have a state judicial court review of their case.

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

The amendments implement the Human Resources Code, §§32.001 - 32.042.

§4.1012.Medicaid Eligibility.

(a) CPW applicants must meet the requirement stipulated in the AFDC rules for three months prior coverage.

(b) Regular Medicaid eligibility for all applicants except pregnant women begins the earliest day in the application month on which the client meets all eligibility criteria.

(c) Medicaid eligibility for pregnant women begins as early as the first day of the third month before the month of application, but no earlier than the month their pregnancies began.

(d) Medicaid eligibility for children certified under the newborn children provision must begin on the child's date of birth.

(e) CPW clients are not eligible for four months post Medicaid coverage.

(f) Medicaid eligibility for pregnant women ends the second month following the month the pregnancy terminates.

(g) Medicaid eligibility for children certified under the newborn children provision ends the earliest of the following:

(1) the month the mother's Medicaid ends;

(2) the month the child is no longer a member of his mother's household; or

(3) the month the child becomes one year old.

(h) Medicaid eligibility for children under age 19 determined to be eligible for medical assistance on or after January 1, 2002, continues for a six-month period without additional review and regardless of changes in resources or income, until the earlier of:

(1) the 180th day after the date on which the child's eligibility was determined; or

(2) the child's 19th birthday.

(i) A parent or guardian of a child under 19 receiving Medicaid must

(1) receive a health care orientation from a department representative; or

(2) accompany the child to an appointment with a health care provider; or

(3) have a face-to-face interview to renew the child's eligibility for Medicaid and to receive appropriate counseling on the need for comprehensive health care.

(j) Children under 19 who are receiving Medicaid and are eligible for the Texas Health Steps program must be in compliance with the regimen of care prescribed by the Texas Health Steps program or have a face-to-face interview to renew the child's eligibility for Medicaid and to receive appropriate counseling on the need for comprehensive health care.

(k) Services and policies under subsections (h), (i), and (j) of this section will be administered following the procedures specified in DHS Medicaid simplification operating guidelines that are published and available to the public, and updated regularly to reflect procedural changes.

(l) Subsections (h)(1), (h)(2), (i) and (j) of this section are effective with eligibility determinations made on or after January 1, 2002.

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 December 31, 2001.

TRD-200108312

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: January 20, 2002

Proposal publication date: November 23, 2001

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