TITLE 1.ADMINISTRATION

Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. REIMBURSEMENT RATES

Subchapter D. REIMBURSEMENT METHODOLOGY FOR INTERMEDIATE CARE FACILITIES FOR PERSONS WITH MENTAL RETARDATION (ICF/MR)

1 TAC §355.457

The Health and Human Services Commission (HHSC) adopts the amendment to §355.457, concerning the reimbursement methodology for Intermediate Care Facilities for persons with mental retardation (ICF/MR), in its Medicaid Reimbursement Rates chapter, without changes to the proposed text as published in the February 4, 2005, issue of the Texas Register (30 TexReg 453) and will not be republished.

The amended §355.457(c)(2)(B), Fiscal Accountability, changes reference from Texas Department of Mental Health and Mental Retardation (TDMHMR) to the Department of Aging and Disability Services (DADS). The proposal also reinstates language inadvertently deleted that relates to the fiscal accountability requirements for providers and the requirements for repayment of funds to DADS when the fiscal accountability requirements are not met.

The amended §355.457(c)(2)(B) and (C) changes references from TDMHMR to DADS.

The amended §355.457(c)(2)(D) sets forth the repayment requirements for providers whose spending is between 85 and 90 percent of direct service revenues.

The amended §355.457(c)(3) establishes that the total direct service revenue of the modeled rates is the direct service portion of the rate multiplied by the number of allowable units paid for services provided during the reporting period.

The amended §355.457(c)(3)(A) establishes that Providers whose direct service costs are 90% or more of the direct service revenues will not be subject to repayment under this section.

The amended §355.457(c)(3)(B) sets forth the repayment requirements for providers whose direct service costs are less than 85% of the direct service revenues.

The amended §355.457(c)(3)(C) sets forth the repayment requirements for providers whose direct service costs are between 85% and 90% of the direct service revenues.

HHSC did not receive any comments regarding the proposed amendment during the comment period, which included a public hearing on February 15, 2005.

The amendment is adopted under the Texas Government Code, §531.033, which provides the commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021; the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

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 May 9, 2005.

TRD-200501880

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Effective date: May 29, 2005

Proposal publication date: February 4, 2005

For further information, please call: (512) 424-6900