TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 42. MEDICAID WAIVER PROGRAM FOR PEOPLE WHO ARE DEAF-BLIND WITH MULTIPLE DISABILITIES

40 TAC §42.6, §42.12

The Texas Department of Human Services (DHS) adopts an amendment to §42.6 and new §42.12, in its Medicaid Waiver Program for People who are Deaf-Blind with Multiple Disabilities chapter. The sections are adopted with changes to the proposed text published in the November 16, 2001, issue of the Texas Register (26 TexReg 9369).

DHS is adopting related policy in Chapters 48 and 50 in this issue of the Texas Register .

Justification for the amendment and new section is to comply with riders 7(b)(2) and 37 to the DHS appropriations in the Appropriations Act, 77th Legislative Session, that allow DHS to transfer nursing facility funds to the Community Care program to cover the cost in the shift in services. These riders require DHS to not disallow or jeopardize community services for individuals currently receiving services under Medicaid waivers if those services are required for the individual to live in the most integrated setting possible. The sections also establish the basis for approving or denying requests for changes in the waiver client's service plan.

DHS received comments from United Cerebral Palsy of Texas, the Arc of Texas, the Coalition of Texans with Disabilities, and the Disability Policy Consortium. A summary of the comments and the department's responses follow.

Comment: All four agencies recommended changes to the proposed rules concerning Rider 7. They requested language clarifying how changes to the waiver service plan are handled. Also suggested were ways to avoid jeopardizing community services if the estimated cost of the services exceeds the cost ceiling.

Response: DHS agrees and changed §§42.12.

Comment: Regarding the Deaf-Blind waiver, a comment was received that §42.6, concerning planning for and provision of services, should state that enrollment is limited by the availability of state funding.

Response: DHS agrees and has added a statement to the rule that enrollment is limited to the availability of state funding.

Comment: All four agencies recommended changes to the proposed rules, for all four waiver programs, regarding the wording of the Rider 37 rule. They suggested that in addition to providing information to nursing facility new admissions and nursing facility discharges on Community Care services, an application for Community Care services also be provided.

Response: DHS disagrees. DHS does not require an application for Community Care services. Individuals may request Community Care services at any time and are placed on an interest list on a first-come, first-served basis, if they request waiver services. If other Community Care entitlement services are requested, the eligibility process will begin. In addition, Texas Health and Human Services Commission (HHSC) §351.15 requires DHS to provide each long-term care client information about long-term care services appropriate to his needs. DHS complies with this rule.

Comment: Two agencies asked what the appeal process would look like if the Community Based Alternatives (CBA) or the Consolidated Waiver Program (CWP) case manager denies the client's request to exceed the individual cost ceiling.

Response: The process is the same as in any other adverse action against the client. The client is given a written notice of the denial on the denial of services form, which also explains a client's appeal rights. The client may appeal the denial verbally to the case manager or by completing the back of the denial of service form and sending it back to the case manager. The DHS hearing officer then sets a hearing date and informs the client of the date. The hearing officer makes client rights available to all clients requesting a fair hearing.

In addition to the changes indicated above, DHS made minor editorial changes to §42.6 and §42.12 in order to improve clarity and understanding.

The amendment and new section are adopted under the Human Resources Code, Title 2, Chapters 22 and 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 amendment and new section implement the Human Resources Code, §§22.001- 22.030 and §§32.001-32.042.

§42.6.Planning for and Provision of Services.

(a) Applicants must have an individual plan of care for home and community-based services, developed by the interdisciplinary team composed of a case manager and other appropriate professional staff who meet the qualifications specified in the waiver request. The individual plan of care for home and community-based services must specify the type of waiver services required to keep an individual in the community, the units of waiver services, and their frequency and duration. The individual plan of care for home and community-based services must be signed and dated by the interdisciplinary team prior to implementation. The interdisciplinary team must certify in writing that the waiver program services authorized on the individual plan of care are necessary to avoid ICF-MR/RC VIII institutional placement and are appropriate to meet the applicant's needs in the community.

(b) The individual plan of care for home and community-based services must be approved by the Texas Department of Human Services (DHS) and updated by the provider at least annually. Any gaps in the coverage periods of the individual plan of care approved by DHS result in loss of payment to the provider.

(c) The estimated annual cost of the applicant's individual plan of care for a period of 364 days from the initial enrollment for home and community-based services must not exceed 115% of the average cost of institutional care in an ICF-MR/RC VIII facility.

(d) Enrollment into this waiver program is limited to the number of participants approved by the Centers for Medicare and Medicaid Services (CMS) or the availability of state funding. When the number of participants can be increased, DHS DB-MD waiver program will analyze need based on number of Project Link referral forms received. At that point, a Request for Proposals (RFP) will be issued statewide announcing the need for providers to serve particular counties or multiple counties where clients desire services. A team of experts will evaluate received proposals based on approved common standards. A contract will be signed by the approved providers and DHS, detailing standards to be followed in provision of home and community based services. Potential participants on the DHS centralized waiting list will be notified of qualified providers who can serve them in the location they desire. Notification of service availability to potential participants will be in order of the date DHS receives the Project Link Referral form. The providers will likewise be notified of those clients desiring services in their area. Once the providers and applicants decide to begin services, the case manager employed by the providers will establish eligibility of the clients and submit plan of care forms to DHS.

(e) Participants may be enrolled in only one waiver program at a time. Participants may not receive both DB-MD waiver services and other Medicaid community care services at the same time.

(f) Individuals residing in a Texas nursing facility who are enrolled in Medicaid will be approved for Community Care services if they request services while residing in a Texas nursing facility and meet all eligibility criteria for Community Care services. If an individual is discharged from the nursing facility for a community setting before being determined eligible for Medicaid nursing facility services and Community Care services, the individual will be denied Community Care services unless these services are part of an entitlement program. Upon admission to or discharge from the nursing facility, DHS must make information on Community Care services, including Medicaid waiver services, available to the nursing facility resident.

§42.12.Changes in Deaf-Blind Services.

If the estimated cost of the Deaf-Blind Medicaid Waiver services necessary to adequately meet the needs of the participant to live in the most integrated setting in the community exceeds the Deaf-Blind Medicaid Waiver cost ceiling, the Texas Department of Human Services (DHS) may not disallow or jeopardize Deaf-Blind community services for that person. Requests for changes to the participant's Individual Service Plan (ISP) will be considered if there is a change in the participant's medical condition, functional needs or environment, or a change in the caregiver's support/third-party resources that have been providing services to the participant, or when a Deaf-Blind service or support (either a new service or expansion of existing service on a temporary or long-term basis) is needed to adequately support a participant living in the most integrated setting in the community. If there is a need for a reimbursable waiver service that would have caused the participant to exceed the individual cost ceiling if purchased by the program before the implementation of Rider 7 of the 77th Appropriations Act, this service will also be considered for approval. The Deaf-Blind Program Consultant will make the determination to approve or deny each request. The determination will be made on the basis of the necessity of the requested service, the participant's disability or medical condition, and the necessity of the service to adequately support the participant living in the most integrated setting possible in the community.

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 17, 2002.

TRD-200202403

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: May 7, 2002

Proposal publication date: November 16, 2001

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


Chapter 48. COMMUNITY CARE FOR AGED AND DISABLED

The Texas Department of Human Services (DHS) adopts amendments to §§48.2103, 48.2111, 48.6098, and new §48.2123 and §48.6099, in its Community Care for Aged and Disabled chapter. The amendments to §48.2103 and §48.6098, and new §48.2123 and §48.6099 are adopted with changes to the proposed text published in the November 16, 2001, issue of the Texas Register (26 TexReg 9370). The amendment to §48.2111 is adopted without changes to the proposed text published in the November 16, 2001, issue of the Texas Register (26 TexReg 9370).

DHS is adopting related policy in Chapters 42 and 50 in this issue of the Texas Register .

Justification for the amendments and new sections is to comply with riders 7(b)(2) and 37 to the DHS appropriations in the Appropriations Act, 77th Legislative Session, that allow DHS to transfer nursing facility funds to the Community Care program to cover the cost in the shift in services. These riders require DHS to not disallow or jeopardize community services for individuals currently receiving services under Medicaid waivers if those services are required for the individual to live in the most integrated setting possible. The sections also establish the basis for approving or denying requests for changes in the waiver client's service plan.

DHS received comments from United Cerebral Palsy of Texas, the Arc of Texas, the Coalition of Texans with Disabilities, and the Disability Policy Consortium. A summary of the comments and the department's responses follow.

Comment: All four agencies recommended changes to the proposed rules concerning Rider 7. They requested language clarifying how changes to the waiver service plan are handled. Also suggested were ways to avoid jeopardizing community services if the estimated cost of the services exceeds the cost ceiling.

Response: DHS agrees and changed §48.2123 and §48.6099.

Comment: All four agencies recommended changes to the proposed rules, for all four waiver programs, regarding the wording of the Rider 37 rule. They suggested that in addition to providing information to nursing facility new admissions and nursing facility discharges on Community Care services, an application for Community Care services also be provided.

Response: DHS disagrees. DHS does not require an application for Community Care services. Individuals may request Community Care services at any time and are placed on an interest list on a first-come, first-served basis, if they request waiver services. If other Community Care entitlement services are requested, the eligibility process will begin. In addition, Texas Health and Human Services Commission (HHSC) §351.15 requires DHS to provide each long-term care client information about long-term care services appropriate to his needs. DHS complies with this rule.

Comment: Two agencies asked what the appeal process would look like if the Community Based Alternatives (CBA) or the Consolidated Waiver Program (CWP) case manager denies the client's request to exceed the individual cost ceiling.

Response: The process is the same as in any other adverse action against the client. The client is given a written notice of the denial on the denial of services form, which also explains a client's appeal rights. The client may appeal the denial verbally to the case manager or by completing the back of the denial of service form and sending it back to the case manager. The DHS hearing officer then sets a hearing date and informs the client of the date. The hearing officer makes client rights available to all clients requesting a fair hearing.

In addition to the changes indicated above, DHS made minor editorial changes to §§48.2103, 48.2123, 48.6098, and 48.6099 in order to improve clarity and understanding.

Subchapter C. MEDICAID WAIVER PROGRAM FOR PERSONS WITH RELATED CONDITIONS

40 TAC §§48.2103, 48.2111, 48.2123

The amendments and new sections are adopted under the Human Resources Code, Title 2, Chapters 22 and 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 and new sections implement the Human Resources Code, §§22.001- 22.030 and §§32.001-32.042.

§48.2103.Participant Eligibility Criteria.

(a) To be determined eligible by the Texas Department of Human Services (DHS) for waiver program services, an applicant must:

(1) be eligible for Supplemental Security Income (SSI) benefits; or

(2) have been eligible for and received SSI benefits and continue to be eligible for Medicaid as a result of protective coverage mandated by federal law; or

(3) be under age 18 and reside with parents or spouses, and

(A) be eligible for Medicaid benefits only if institutionalized,

(B) meet the SSI criteria for disability, as documented on the appropriate DHS forms,

(C) meet the SSI criteria for institutional deeming,

(D) have income and resources which meet the requirements of the SSI program, and

(E) receive waiver program services for persons with related conditions; or

(4) be an individual who would be financially eligible for Medicaid if residing in a Medicaid- certified institution. For these individuals, the policies specified in subparagraphs (A) and (B) apply.

(A) Spousal impoverishment provisions.

(i) For waiver participants with spouses who live in the community, the income and resource eligibility requirements are determined according to the spousal impoverishment provisions in §1924 of the Social Security Act, and as specified in the Medicaid State Plan and subsection (a) of this section.

(ii) After the participant is determined to be eligible for Medicaid, DHS determines the amount of the participant's income applicable to payment.

(iii) To determine the amount of the participant's income applicable to payment, DHS uses the same methodology as if the participant were residing in an institution, except that the personal needs allowance is equal to the institutional cap.

(iv) DHS applies post-eligibility treatment of income rules to individuals eligible under a special income level, as specified in 42 Code of Federal Regulations 435.726, for use only by states that do not use the 209(b) option. For individuals receiving home and community-based services who are subject to the post-eligibility treatment of income rules, the Medicaid payment to the provider for home and community-based services will be reduced by the amount that remains after deducting the appropriate amounts from the individual's income. The DHS Copayment Worksheet form is used to calculate the client copayment amount.

(B) Calculation of participant copayment.

(i) A participant who is financially eligible based on the special institutional income limit must share in the cost of waiver services. The method for determining the participant copayment is specified in this subparagraph and is documented on DHS's Medical Assistance Only Worksheet form. When calculating the copayment amount for a participant with income that exceeds the SSI federal benefit rate, DHS deducts the following:

(I) the cost of the participant(s) maintenance needs, which must equal the special institutional income limit for eligibility under the Texas Medicaid program;

(II) the cost of the maintenance needs of the participant's dependent children. This amount is equivalent to the Aid to Families with Dependent Children (AFDC) program basic monthly grant for children or for a spouse with children, using the recognizable needs amount in the AFDC Budgetary Allowance Chart;

(III) the costs incurred for medical or remedial care that are necessary, but not covered by Medicare, Medicaid, or any other third party. This includes the cost of health insurance premiums, deductibles, and coinsurance; and

(IV) the cost of the maintenance needs of the participant's spouse. This amount is equivalent to the amount of the SSI federal benefit rate, less the spouse's own income.

(ii) The copayment amount is the participant's remaining income after all allowable expenses have been deducted. The copayment amount is applied only to the cost of home and community-based services which are funded through the Community Living Assistance and Support Services (CLASS) waiver program and specified on the participant's individual plan of care. The copayment amount must not exceed the cost of services actually delivered.

(iii) Participants must pay the copayment amount to the provider contracted to deliver authorized waiver services; or

(5) be an individual under age 19:

(A) for whom the Texas Department of Protective and Regulatory Services (TDPRS) assumes financial responsibility for, in whole or in part (not to exceed level II foster care payment), and

(B) who is being cared for in a foster care home licensed or certified and supervised by:

(i) TDPRS, or

(ii) a licensed public or private nonprofit child placing agency; or

(6) be a member of a family that receives Medicaid as a result of qualifying for AFDC.

(b) To be determined eligible by DHS for the waiver program services, participants must also meet the following requirements:

(1) Participants must meet the intermediate care facility for the mentally retarded with related conditions (ICF-MR/RC VIII) level-of-care criteria as determined by the Texas Department of Health (TDH) according to applicable state and federal regulations, and as verified by a current level of care assessment.

(A) A preadmission level of care assessment by TDH expires 90 calendar days from its issuance. For participants who are enrolled in the waiver program within 30 calendar days of discharge from an ICF-MR/RC VIII or another waiver program provider, the current level-of-care assessment may be used for enrollment and is valid until the expiration date on the level-of- care assessment.

(B) Re-evaluation of ICF-MR level-of-care criteria is performed annually by the Texas Department of Health using the same criteria as used initially. An initial re-evaluation of level of care must be performed no later than 364 calendar days from the date of enrollment. Subsequent level-of-care re-evaluations must be performed no later than 364 calendar days from the effective date of the prior level-of-care assignment.

(C) Any gaps in the level-of-care coverage periods result in loss of payment to the provider.

(2) Applicants must live in the contracted provider's geographic catchment area or must move into the geographic catchment area within 120 days from the date the applicant's name is removed from the waiting list and the applicant begins the Community Living Assistance and Support Services (CLASS) enrollment process.

(3) Applicants must have an individual plan of care for home and community-based services, developed by the interdisciplinary team composed of a case management service provider and other appropriate professional staff who meet the qualifications specified in the waiver request. The individual plan of care for home and community-based services must specify the type of waiver services required to keep an individual in the community, the units of waiver services, and their frequency and duration.

(A) The individual plan of care for home and community-based services must be signed and dated by the interdisciplinary team prior to implementation. The interdisciplinary team must certify in writing that the waiver program services authorized on the individual plan of care are necessary to avoid ICF-MR/RC VIII institutional placement and are appropriate to meet the applicant's needs in the community.

(B) The individual plan of care for home and community-based services must be approved by DHS and updated by the provider at least annually. Any gaps in the coverage periods of the individual plan of care approved by DHS result in loss of payment to the provider.

(c) The estimated annual cost of the applicant's individual plan of care for a period of 364 days from the initial enrollment for home and community-base services must not exceed 125% of the average cost of institutional care in an ICF-MR/RC VIII facility.

(d) Enrollment into this waiver program is limited to the number of participants approved by Centers for Medicare and Medicaid Services (CMS) or the availability of state funding.

(e) Participants may be enrolled in only one waiver program at a time. Participants may not receive both CLASS waiver services and other DHS community care services at the same time.

(f) Individuals residing in a Texas nursing facility who are enrolled in Medicaid will be approved for Community Care services if they request services and meet all eligibility criteria for Community Care services. If an individual is discharged from the nursing facility to a community setting before being determined eligible for Medicaid nursing facility services and Community Care services, the individual will be denied Community Care services unless these services are part of an entitlement program. Upon admission to or discharge from the nursing facility, DHS must make information on Community Care services, including Medicaid waiver services, available to the nursing facility resident.

§48.2123.Changes in Community Living Assistance and Support Services (CLASS) Services.

(a) If the estimated cost of the CLASS services necessary to adequately meet the needs of the participant to live in the most integrated setting in the community exceeds the CLASS cost ceiling, the Texas Department of Human Services (DHS) may not disallow or jeopardize CLASS community services for that person. Requests for changes to the participant's Individual Service Plan (ISP) will be considered for approval if there is a change in the participant's medical condition, functional needs or environment, or a change in the caregiver's support/third-party resources that have been providing services to the participant, or when a CLASS service or support (either a new service or expansion of existing service on a temporary or long-term basis) is needed to adequately support a participant living in the most integrated setting in the community. If there is a need for a reimbursable waiver service that would have caused the participant to exceed the individual cost ceiling if purchased by the program before the implementation of Rider 7 of the 77th Appropriations Act, this service will also be considered for approval.

(b) The interdisciplinary team will make the determination to approve or deny each request. The determination will be made on the basis of the necessity of the requested service, the participant's disability or medical condition, and the necessity of the service to adequately support the participant living in the most integrated setting possible in the community.

(c) The CLASS DHS Program Consultant must also provide approval for changes to the participant's ISP that cause the plan to exceed 125% of the average cost of institutional care in an ICF MR/RC VIII facility.

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 17, 2002.

TRD-200202404

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: May 7, 2002

Proposal publication date: November 16, 2001

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


Subchapter J. 1915(c) MEDICAID HOME AND COMMUNITY-BASED WAIVER SERVICES FOR AGED AND DISABLED ADULTS WHO MEET CRITERIA FOR ALTERNATIVES TO NURSING FACILITY CARE

40 TAC §48.6098, §48.6099

The amendment and new section are adopted under the Human Resources Code, Title 2, Chapters 22 and 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 amendment and new section implement the Human Resources Code, §§22.001- 22.030 and §§32.001-32.042.

§48.6098.Circumstances Requiring Denial of Services with Advance Notice.

(a) If one or more of the circumstances specified in paragraphs (1) through (10) of this subsection occur, the Community Based Alternatives (CBA) provider agency must provide written documentation to the Texas Department of Human Services (DHS) case manager within two DHS workdays of the occurrence to support a recommendation for denial of CBA services. Advance notice is defined in §48.6002 of this title (relating to Community Based Alternatives (CBA) Definitions).

(1) The participant leaves the state for more than 90 days. DHS will retain authority to extend this time in extraordinary circumstances.

(2) The participant has been legally confined or has resided in an institutional setting for longer than 120 days. An institution includes legal confinement, an acute care hospital, state hospital, rehabilitation hospital, state school, nursing home, or intermediate care facility for persons with mental retardation/related conditions (ICF-MR/RC). DHS will retain authority to extend this time in extraordinary circumstances.

(3) The participant is not financially eligible for Medicaid benefits.

(4) The participant does not meet the medical necessity criteria (MN) for nursing facility care.

(5) Home and community support services providers have refused to serve the participant on the basis of a reasonable expectation that the participant's medical and nursing needs cannot be met adequately in the participant's residence.

(6) The participant or someone in the participant's home refuses to comply with mandatory program requirements, including the determination of eligibility and/or the monitoring of service delivery.

(7) The participant fails to pay his room and board expenses or copayment in the adult foster care (AFC) or assisted living/residential care (AL/RC) setting.

(8) The participant fails to pay his qualified income trust copayment.

(9) The situation, participant, or someone in the participant's home is hazardous to the health and safety of the service provider, but there is no immediate threat to the health or safety of the provider.

(10) The participant or someone in the participant's home openly uses illegal drugs or has illegal drugs readily available within sight of the service provider.

(b) The supporting documentation must include a description of the interventions that have occurred prior to the decision to recommend the denial of services. The documentation must justify the reasons for denial and describe the strategies, outcomes, and negotiations with the participant in accordance with the program policies in the provider manual.

(c) If the DHS case manager determines the documentation supports initiation of denial, the case manager provides written notification of denial to the participant and CBA provider agency within two DHS workdays. The written notification must specify the reason for denial, the effective date of denial, the regulatory reference, and provide written notice of the right to appeal.

(d) If the participant appeals the notification of denial within 10 days of written notification, the CBA provider agency continues CBA services until notification of the decision by the DHS hearing officer. The CBA provider agency must not reduce waiver services until the outcome of the appeal is known.

§48.6099.Changes in CBA Services.

(a) If the estimated cost of the Community Based Alternatives (CBA) services necessary to adequately meet the needs of the participant to live in the most integrated setting in the community exceeds the CBA cost ceiling, the Texas Department of Human Services (DHS) may not disallow or jeopardize CBA community services for that person. Requests for changes to the participant's Individual Service Plan (ISP) will be considered for approval if there is a change in the participant's medical condition, functional needs or environment, or a change in the caregiver's support/third-party resources that have been providing services to the participant, or when a CBA service or support (either a new service or expansion of existing service on a temporary or long-term basis) is needed to adequately support a participant living in the most integrated setting in the community. If there is a need for a reimbursable waiver service that would have caused the participant to exceed the individual cost ceiling if purchased by the program before the implementation of Rider 7 of the 77th Appropriations Act, this service will also be considered for approval. The DHS case manager will make the determination to approve or deny the request in consultation with the DHS registered nurse, as needed.

(b) The determination will be made on the basis of the necessity of the requested service, the participant's disability or medical condition, and the necessity of the service to adequately support the participant living in the most integrated setting possible in the community.

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 17, 2002.

TRD-200202405

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: May 7, 2002

Proposal publication date: November 16, 2001

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


Chapter 50. §1915(c) CONSOLIDATED WAIVER PROGRAM

40 TAC §§50.4, 50.36, 50.48, 50.50

The Texas Department of Human Services (DHS) adopts amendments to §§50.4, 50.36, 50.48, and new §50.50, in its §1915(c) Consolidated Waiver Program chapter. The amendments and new section are adopted with changes to the proposed text published in the November 16, 2001, issue of the Texas Register (26 TexReg 9372).

DHS is adopting related policy in Chapters 42 and 48 in this issue of the Texas Register .

Justification for the amendments and new section is to comply with riders 7(b)(2) and 37 to the DHS appropriations in the Appropriations Act, 77th Legislative Session, that allow DHS to transfer nursing facility funds to the Community Care program to cover the cost in the shift in services. These riders require DHS to not disallow or jeopardize community services for individuals currently receiving services under Medicaid waivers if those services are required for the individual to live in the most integrated setting possible. The sections also establish the basis for approving or denying requests for changes in the waiver client's service plan.

DHS received comments from United Cerebral Palsy of Texas, the Arc of Texas, the Coalition of Texans with Disabilities, and the Disability Policy Consortium. A summary of the comments and the department's responses follow.

Comment: All four agencies recommended changes to the proposed rules concerning Rider 7. They requested language clarifying how changes to the waiver service plan are handled. Also suggested were ways to avoid jeopardizing community services if the estimated cost of the services exceeds the cost ceiling.

Response: DHS agrees and changed §50.50.

Comment: All four agencies recommended changes to the proposed rules, for all four waiver programs, regarding the wording of the Rider 37 rule. They suggested that in addition to providing information to nursing facility new admissions and nursing facility discharges on Community Care services, an application for Community Care services also be provided.

Response: DHS disagrees. DHS does not require an application for Community Care services. Individuals may request Community Care services at any time and are placed on an interest list on a first-come, first-served basis, if they request waiver services. If other Community Care entitlement services are requested, the eligibility process will begin. In addition, Texas Health and Human Services Commission (HHSC) §351.15 requires DHS to provide each long-term care client information about long-term care services appropriate to his needs. DHS complies with this rule.

Comment: Two agencies asked what the appeal process would look like if the Community Based Alternatives (CBA) or the Consolidated Waiver Program (CWP) case manager denies the client's request to exceed the individual cost ceiling.

Response: The process is the same as in any other adverse action against the client. The client is given a written notice of the denial on the denial of services form, which also explains a client's appeal rights. The client may appeal the denial verbally to the case manager or by completing the back of the denial of service form and sending it back to the case manager. The DHS hearing officer then sets a hearing date and informs the client of the date. The hearing officer makes client rights available to all clients requesting a fair hearing.

Comment: A comment regarding §50.4 suggested that a particular slot that is filled by a person coming to the CWP from a nursing facility should be based on what the individual is eligible for, not the last institutional setting in which he resided.

Response: DHS disagrees. If a Rider 37 client is enrolled in the CWP, he will not utilize a CWP slot, since the money follows the client from the nursing facility into the CWP.

In addition to the changes indicated above, DHS made minor editorial changes to §§50.4, 50.36, 50.48, and 50.50 in order to improve clarity and understanding.

The amendments and new section are adopted under the Human Resources Code, Title 2, Chapters 22 and 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 and new section implement the Human Resources Code, §§22.001- 22.030 and §§32.001-32.042.

§50.4.Participant Eligibility Criteria.

(a) To be determined eligible by the Texas Department of Human Services (DHS) for Consolidated Waiver Program (CWP) services, an applicant or participant must:

(1) live in the pilot area;

(2) meet the financial eligibility criteria as defined in §50.6 of this title (relating to Financial Eligibility Criteria);

(3) not participate in other §1915(c) Medicaid waiver programs;

(4) have an individual service plan for home and community-based services developed by the interdisciplinary team (IDT). The individual service plan (ISP) for home and community-based services must specify the type of waiver services required to keep an individual in the community, the units of waiver services, and their frequency and duration as defined in §50.16 of this title (relating to Individual Service Plan);

(5) have an ISP for home and community-based services with an estimated annual cost that does not exceed:

(A) 125% of the average aggregate cost of intermediate care facilities for individuals with mental retardation (ICF-MR) Level I, V, VI, and VIII for individuals who meet the ICF-MR level of care in accordance with §50.8(a)(2) of this title (relating to Individual Level-of-Care Criteria); or

(B) 150% of the individual's actual Texas Index for Level of Effort (TILE) payment rate for individuals with a nursing facility level-of-care in accordance with §50.8(a)(1) of this title (relating to Individual Level-of-Care Criteria);

(6) meet the level-of-care criteria as described in §50.8 of this title (relating to Individual Level-of-Care Criteria);

(7) have ongoing needs for waiver services whose projected costs, as indicated on the ISP, do not exceed the maximum service ceilings that follow:

(A) adaptive aids and medical supplies service category cannot exceed $10,000 per ISP plan year with DHS maintaining the right to exception;

(B) minor home modifications service category cannot exceed $7500 per individual per 7 years until age 21; then the minor home modifications service category cannot exceed $7500 (lifetime maximum) with a maximum of $300 for repairs per ISP year thereafter;

(C) respite care cannot exceed 45 days per individual per ISP year with DHS maintaining the right to exception; and

(D) dental care cannot exceed $1000 per ISP year;

(8) receive waiver services within 30 days after waiver eligibility is determined;

(9) meet the re-evaluation of institutional level-of-care criteria as performed annually by DHS using the same criteria as used initially;

(10) reside in his own home, in a licensed assisted living facility, in an adult foster care home, 24-hour residential habilitation or family surrogate services setting contracted with DHS to provide CWP services, or in a foster home that meets the requirements for foster homes in accordance with 40 TAC §700.1501 (concerning Foster and Adoptive Home Development). CWP services will not be delivered to residents of hospitals, nursing facilities, ICF-MR facilities, or unlicensed assisted living facilities unless the facility is exempt in accordance with §50.30 of this title (relating to 24-Hour Residential Habilitation) as pertains to provider requirements for 24-hour residential habilitation; and

(11) choose waiver services as an alternative to institutional care.

(b) A preadmission level of care assessment expires 120 calendar days from its issuance. For participants who are enrolled in the waiver program within 30 calendar days of discharge from an institution, the current level-of-care assessment may be used for enrollment and is valid until the expiration date on the approved ISP.

(c) Enrollment into this waiver program is limited to the number of participants approved by the Centers for Medicare and Medicaid Services (CMS) and funded by the State of Texas.

(d) Enrollment in the pilot is restricted to 200 participants with the following slot allocation:

(1) 50 slots for adults who meet the requirements for nursing facility care from the Community Based Alternatives (CBA) interest list;

(2) 50 slots for children who meet the requirements for nursing facility care from the Medically Dependent Children Program (MDCP) interest list;

(3) 25 slots for adults with mental retardation who meet the requirements for ICF-MR care level I from the Home and Community Based Services (HCS) interest list;

(4) 25 slots for children with mental retardation who meet the requirements for ICF-MR care level I from the HCS interest list;

(5) 25 slots for adults with related conditions or developmental disabilities who meet the requirements for ICF-MR care level VIII from the CLASS interest list, with one of these slots specifically targeted to an individual who is deaf-blind with multiple disabilities from the Deaf Blind Multiple Disabilities (DBMD) interest list; and

(6) 25 slots for children with related conditions or developmental disabilities who meet the requirements for ICF-MR care level VIII from the CLASS interest list, with one of these slots specifically targeted to an individual who is deaf-blind with multiple disabilities from the DBMD interest list.

(e) If the funding for CWP changes, the ratios for slot allocation will remain the same.

(f) For purposes of slot allocation, HCS means TDMHMR waiver currently operating in the pilot area.

(g) An individual who resides in a Texas nursing facility and is enrolled in Medicaid will be approved for Community Care services if the individual requests services while residing in a Texas nursing facility and meets all eligibility requirements for Community Care services.

(1) If the individual is discharged into the community before being determined eligible to receive nursing facility Medicaid and Community Care services, the individual will be denied Community Care services unless:

(A) The individual is next in line to fill a CWP slot as outlined in §50.32 of this title (relating to Maintenance of Interest Lists) and there is an opening within the number approved by CMS with available state funding; or

(B) The individual has requested Community Care services that are part of an entitlement program.

(2) Upon admission to or discharge from the nursing facility, DHS must make information on Community Care services, including Medicaid waiver services, available to the nursing facility resident.

§50.36.Circumstances Requiring Denial of Services with Advance Notice.

(a) Advance notice is a statement of the action the state intends to take provided in writing to the individual or the individual's authorized representative. Advance notice advises them of the right to a hearing, the method by which a hearing may be obtained, and that the individual may represent himself, or use legal counsel, a relative, a friend, or other spokesperson. The Texas Department of Human Services (DHS) must mail a notice to the participant at least 12 days before the day of action.

(b) The Consolidated Waiver Program (CWP) provider agency must provide written documentation to the DHS case manager within two DHS workdays of the occurrence to support a recommendation for denial of CWP services, if one or more of the circumstances occurs:

(1) the participant leaves the pilot area for more than 90 days. DHS retains the authority to extend this time in extraordinary circumstances;

(2) the participant has been legally confined or has resided in an institutional setting for longer than 120 days. An institution includes legal confinement, an acute-care hospital, a state hospital, a rehabilitation hospital, a state school, a nursing home, or an intermediate-care facility for persons with mental retardation/related conditions (ICF-MR/RC). DHS will retain authority to extend this time in extraordinary circumstances;

(3) the participant is not financially eligible for Medicaid benefits;

(4) the participant does not meet the individual level-of-care criteria as set out in §50.8 of this title (relating to Individual Level-of-Care Criteria);

(5) Home and community support services agencies providers have refused to serve the participant on the basis of a reasonable expectation that the participant's medical and nursing needs cannot be met adequately in the participant's residence;

(6) the participant or someone in the participant's home refuses to comply with mandatory program requirements, including the determination of eligibility and/or the monitoring of service delivery;

(7) the participant fails to pay his room and board expenses or copayment in the adult foster care, assisted living/residential care, 24-hour residential habilitation, or family surrogate services setting;

(8) the participant fails to pay his qualified income trust copayment;

(9) the situation, participant, or someone in the participant's home is hazardous to the health and safety of the service provider, but there is no immediate threat to the health or safety of the provider; or

(10) the participant or someone in the participant's home openly uses illegal drugs or has illegal drugs readily available within sight of the service provider.

(c) The supporting documentation must include a description of the interventions that have occurred before the decision to recommend the denial of services. The documentation must justify the reasons for denial and describe the strategies, outcomes, and negotiations with the participant in accordance with the program policies outlined in CWP policy letters or the CWP provider manual.

(d) If the DHS case manager determines the documentation supports initiation of denial, the case manager provides written notification of denial to the participant and CWP provider agency within two DHS workdays of receipt of the provider's written recommendation for denial. The written notification must specify the reason for denial, along with the regulatory reference, the effective date of denial, and provide written notice of the right to appeal.

(e) If the participant appeals the notification of denial within 10 days of receiving written notification, the CWP provider agency continues CWP services until notification of the decision by the DHS hearing officer. The CWP provider agency must not reduce waiver services until the outcome of the appeal is known.

§50.48.Utilization Review.

(a) The Texas Department of Human Services (DHS) will review a proposed Individual Service Plan (ISP) and supporting documentation specified in §50.16 of this title (relating to Individual Service Plan for Waiver Services) upon receipt of a proposed ISP having a cost that exceeds 100% of:

(1) the Nursing Facility Texas Index for Level of Effort for individuals who meet the level-of-care criteria for medical necessity for nursing facility care in accordance with §50.8(a)(1) of this title (relating to Individual Level of Care Criteria); or

(2) the estimated annualized average per capita cost for Intermediate Care Facility for Individuals with Mental Retardation (ICF/MR) services for individuals who meet the level-of-care criteria for an ICF/MR in accordance with §50.8(a)(2) of this title (relating to Individual Level of Care Criteria).

(b) DHS will review the proposed ISP to determine if the type and amount of CWP program services specified in the ISP are appropriate and supported by documentation specified in §50.16 of this title (relating to Individual Service Plan). After reviewing the proposed ISP and supporting documentation, DHS may request additional documentation. DHS will review any additional documentation submitted in accordance with its request. DHS may modify an ISP based on its review and approve the proposed ISP or send written notification that the proposed ISP has been approved with modifications, or DHS may deny an applicant CWP services due to the proposed ISP exceeding the cost ceiling as defined in §50.4(a)(5)(A)-(B) of this chapter (relating to Participant Eligibility Criteria).

§50.50.Changes in Consolidated Waiver Program (CWP) Services.

(a) If the estimated cost of the CWP services necessary to adequately meet the needs of the participant to live in the most integrated setting in the community exceeds the CWP cost ceiling, the Texas Department of Human Services (DHS) may not disallow or jeopardize CWP community services for that person. Requests for changes to the participant's Individual Service Plan (ISP) will be considered for approval if there is a change in the participant's medical condition, functional needs or environment, or in the caregiver's support/third-party resources that have been providing services to the participant, or when a CWP service or support (either a new service or expansion of existing service on a temporary or long-term basis) is needed to adequately support a participant living in the most integrated setting in the community.

(b) The DHS case manager will make the determination to approve or deny the request, in consultation with the DHS registered nurse, as needed, and will refer to §50.48 of this title (related to Utilization Review), if appropriate.

(c) The determination will be made on the basis of the necessity of the requested service, the participant's disability or medical condition, and the necessity of the service to adequately support the participant living in the most integrated setting possible in the community.

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 17, 2002.

TRD-200202406

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: May 7, 2002

Proposal publication date: November 16, 2001

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


Chapter 97. LICENSING STANDARDS FOR HOME AND COMMUNITY SUPPORT SERVICES AGENCIES

Subchapter F. ENFORCEMENT

40 TAC §97.602

The Texas Department of Human Services (DHS) adopts an amendment to §97.602 without changes to the proposed text published in the March 15, 2002, issue of the Texas Register (27 TexReg 1994).

Justification for the amendment is to correct an error in the adoption published in the November 9, 2001, issue of the Texas Register (26 TexReg 9216).

DHS received no comments regarding adoption of the amendment.

The amendment is adopted under the Health and Safety Code, §142.017, which provides DHS with the authority to adopt rules relating to administrative penalties imposed on home and community support services agencies (HCSSAs).

The amendment implements the Health and Safety Code, §142.017.

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 19, 2002.

TRD-200202439

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: May 9, 2002

Proposal publication date: March 15, 2002

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


Part 2. TEXAS REHABILITATION COMMISSION

Chapter 106. PURCHASE OF GOODS AND SERVICES BY TEXAS REHABILITATION COMMISSION

Subchapter D. PURCHASE OF GOODS AND SERVICES

40 TAC §106.105

The Texas Rehabilitation Commission (TRC) adopts a change to Title 40, Chapter 106, §106.105, concerning purchase of goods and services by TRC, without changes to the proposed text as published in the December 21, 2001, issue of the Texas Register . The change is being adopted to correct an erroneous citation to the Human Resources Code in 40 TAC §106.105.

No comments were received regarding adoption of the proposed amendment.

The amendment is adopted under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

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 22, 2002.

TRD-200202449

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Effective date: May 12, 2002

Proposal publication date: December 21, 2001

For further information, please call: (512) 424-4050


Subchapter K. HISTORICALLY UNDERUTILIZED BUSINESSES

40 TAC §106.355

The Texas Rehabilitation Commission (TRC) adopts a change to Title 40, Chapter 106, §106.355, concerning purchase of goods and services by TRC, without changes to the proposed text as published in the February 1, 2002, issue of the Texas Register . The change is being adopted to update for the new name of the Texas Building and Procurement Commission.

No comments were received regarding adoption of the proposed amendment.

The amendment is adopted under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

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 22, 2002.

TRD-200202450

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Effective date: May 12, 2002

Proposal publication date: February 1, 2002

For further information, please call: (512) 424-4050


40 TAC §106.357

The Texas Rehabilitation Commission (TRC) adopts a change to Title 40, Chapter 106, §106.357, concerning purchase of goods and services by TRC, without changes to the proposed text as published in the February 1, 2002, issue of the Texas Register . The change is being adopted to update for the new name of the Texas Building and Procurement Commission.

No comments were received regarding adoption of the proposed amendment.

The amendment is adopted under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

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 22, 2002.

TRD-200202451

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Effective date: May 12, 2002

Proposal publication date: February 1, 2002

For further information, please call: (512) 424-4050


Chapter 117. SPECIAL RULES AND POLICIES

40 TAC §117.5

The Texas Rehabilitation Commission (TRC) adopts a change to Title 40, Chapter 117, §117.5, concerning special rules and policies, without changes to the proposed text as published in the February 1, 2002, issue of the Texas Register . The change is being adopted to update for the new name of the Texas Building and Procurement Commission.

No comments were received regarding adoption of the proposed amendment.

The amendment is adopted under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

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 22, 2002.

TRD-200202452

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Effective date: May 12, 2002

Proposal publication date: February 1, 2002

For further information, please call: (512) 424-4050