1 TAC §354.1450
The Texas Health and Human Services Commission (HHSC) adopts
new §354.1450, relating to audits of Medicaid providers. The new rule
is adopted without changes to the proposed text as published in the May 5,
2006, issue of the
Texas Register
(31 TexReg
3655) and will not be republished.
Added by the Senate Bill 630, 79th Legislature, 2005, Regular Session, §32.070
of the Human Resources Code requires HHSC to adopt rules governing the audit
of Medicaid providers. New §354.1450 implements the provisions of the
statute.
New §354.1450 requires that an agency conducting an audit of a Medicaid
provider must notify the provider of an impending audit not later than seven
days before the field audit portion of the audit begins. If the provider is
an incorporated pharmacy, the auditing agency must also notify the pharmacy's
corporate headquarters. Section 354.1450 does not apply to computerized audits
using the Medicaid Fraud Detection Audit System or audits or investigations
conducted by the Office of the Attorney General's Medicaid Fraud Control Unit,
the Office of the State Auditor, the Office of the Inspector General, or the
Office of the Inspector General of the U.S. Department of Health and Human
Services.
HHSC received one comment on the proposed rule. The Private Providers Association
of Texas expressed support for the rule as proposed.
The new rule is adopted under the Texas Government Code, §531.033,
which provides the Executive Commissioner of HHSC with broad rulemaking authority;
the Human Resources Code, §32.021 and 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 Human Resources Code, §32.070, which
provides the Commissioner of HHSC with the authority to adopt rules governing
certain audits of Medicaid providers.
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 July 7, 2006.
TRD-200603633
Steve Aragón
Chief Counsel
Texas Health and Human Services Commission
Effective date: August 1, 2006
Proposal publication date: May 5, 2006
For further information, please call: (512) 424-6900