TITLE 1. ADMINISTRATION

Part 2. TEXAS ETHICS COMMISSION

Chapter 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURES

Subchapter B. GENERAL REPORTING RULES

1 TAC §20.56

The Texas Ethics Commission proposes new §20.56, relating to the reporting of a political contribution in the form of a pledge.

The proposed new §20.56 would clarify the method for reporting pledges of political contributions. The rule would require a pledge of a contribution that is actually received in the reporting period in which it was accepted to be reported on the "political contributions" schedule. The rule also would require that the "date of the contribution" is the date the pledge was accepted.

David A. Reisman, Executive Director, has determined that for each year of the first five years that the rule is in effect there will be no fiscal implication for the state and no fiscal implication for local government as a result of enforcing or administering the rule as proposed. Mr. Reisman has also determined that the rule will have no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be clarity in what is required by the law.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because the rule does not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rule.

The Texas Ethics Commission invites comments on the proposed rule from any member of the public. A written statement should be mailed or delivered to Natalia Luna Ashley, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rule may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rule. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The proposed new §20.56 is proposed under Government Code, Chapter 571, Section 571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed new §20.56 affects section 254.031 of the Election Code.

§20.56.Reporting a Pledge of a Contribution.

(a) The date of a pledge of a contribution is the date the pledge was accepted, regardless of when the pledge is actually received.

(b) Except as provided by subsection (c), a pledge of a contribution shall be reported on the pledge schedule for the reporting period in which the pledge was accepted.

(c) A pledge of a contribution that is actually received in the reporting period in which the pledge was accepted, shall be reported on the contribution schedule or the loan schedule, as applicable, and in accordance with subsection (a).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 17, 2007.

TRD-200701441

Natalia Luna Ashley

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: June 3, 2007

For further information, please call: (512) 463-5800


Part 12. COMMISSION ON STATE EMERGENCY COMMUNICATIONS

Chapter 251. REGIONAL PLANS--STANDARDS

1 TAC §251.6

The Commission on State Emergency Communications (CSEC) proposes an amendment to §251.6, concerning guidelines for strategic plans, amendments, and allocation of funds.

The proposed changes are intended to align the rule with CSEC's biennial appropriation from the Texas Legislature, more clearly identify sections of Health and Safety Code, Chapter 771, governing CSEC's authority to allocate appropriated funds, and to shorten the rule by moving procedural requirements into a CSEC Program Policy Statement (PPS).

Paul Mallett, CSEC executive director, has determined that, for each year of the first five years that the rule is in effect, enforcing or administering the rule will result in: (1) No additional costs or reduction in costs to the state and local governments; (2) No loss or increase in revenue to the state; and (3) Possible changes from the historical percentages of appropriated funds allocated to each Regional Planning Commission (RPC). Whether an RPC's biennial allocation percentage increases or decreases will be determined by various factors including, but not limited to, the amount of 9-1-1 Fees and Surcharge CSEC is appropriated in each of its legislative strategies and the financial needs of the RPC in order to implement these strategies.

Mr. Mallett has also determined that, for each year of the first five years the rule is in effect, the public benefit expected as a result of enforcing the rule will be an overall enhancement of the effectiveness of 9-1-1 service in the RPC program area by aligning the allocating of funds to the RPCs with CSEC's legislative appropriation strategies. The anticipated economic costs to persons who are required to comply with the rule will be borne solely by the RPCs and will depend upon the financial needs of each RPC to implement the legislative appropriation strategies. Mr. Mallett has determined that, although no historical data is available, there appears to be no direct effect on small or micro-businesses.

Comments on the amendment may be submitted in writing to Paul Mallett, Executive Director, Commission on State Emergency Communications, 333 Guadalupe Street, Suite 2-212, Austin, Texas 78701-3942 within 30 days after publication of the proposal in the May 4, 2007, issue of the Texas Register.

The amendment is proposed under the Texas General Appropriations Act appropriation of 9-1-1 Fees and Equalization Surcharge to CSEC; and Texas Health and Safety Code, §§771.051, 771.056, 771.071, 771.0711, 771.072, 771.075, 771.0751, 771.077, 771.078, and 771.079 which authorize CSEC to plan, develop, fund, administer, approve, and enhance the provisioning and effectiveness of 9-1-1 service. The proposed amendment is proposed in accordance with the process for rulemaking as prescribed by Texas Government Code, Chapter 2001, Subchapter B.

No other statutes, articles, or codes are affected by the proposed amendment.

§251.6.Guidelines for Strategic Plans, Amendments, and [ Revenue ] Allocation of Funds .

(a) Purpose. This [The Commission on State Emergency Communications (Commission) establishes this] rule provides [to provide ] guidelines for a regional planning commission (RPC) to follow in developing and [or] amending its regional plan and for [in describing] how appropriated funds are [ money ] allocated by the Commission on State Emergency Communications (Commission) to the RPCs [ is to be allocated in the region ].

(b) (No change.)

(c) Regional Plans [ Plan Budgets ] . Regional plans shall be developed consistent with Health and Safety Code §771.055, the Items of Appropriation in the Texas Legislature's biennial appropriation to the Commission, and Commission rules and policies. Regional plans shall be submitted to the Commission for consideration in accordance with Health and Safety Code §771.056 and Commission rules and policies. [ the Administration, Equipment, and Program Budgets approved by the Commission. The Program Budget includes the following four major strategic plan levels (in order of priority): ]

[ (1) Level I: The equipment, network, and database equipment and/or services that provide the essential elements of 9-1-1 service, including the maintenance and replacement of equipment.]

[ (A) Network;]

[ (B) Wireless;]

[ (C) Database;]

[ (D) Equipment Lease;]

[ (E) Language Line; and]

[ (F) Equipment Maintenance.]

[ (2) Level II: The activities, equipment, and/or services that directly support and enhance 9-1-1 call delivery and data maintenance for the level of service provided to the region.]

[ (A) Database Maintenance;]

[ (B) MIS;]

[ (C) Mapped ALI;]

[ (D) PSAP Room Prep;]

[ (E) PSAP Training; and]

[ (F) Public Education.]

[ (3) Level III: The activities, equipment, and/or services that provide auxiliary enhancements to the delivery of 9-1-1 calls and the level of service provided to the region.]

[ (A) Network Diversity;]

[ (B) PSAP Supplies; and]

[ (C) Ancillary Maintenance & Repair]

[ (4) Level IV: Use of Revenue in Certain Counties. The activities, equipment, and/or services that provide necessary auxiliary enhancements to the 9-1-1 system of a county eligible under Health and Safety Code section 771.0751 because it has a population over 700,000 or is the county that has the highest population within an RPC participating in the Commission program.]

[ (d) Regional Plans. Regional plans developed in compliance with Chapter 771 and Commission Rule 251.1 shall include projected financial operating information for at least the two state fiscal years following submission of the plan; and strategic planning information for at least the five state fiscal years following submission of the plan.]

[ (1) The Commission shall establish the format of regional plans for the sake of identifying overall statewide requirements in its implementation.]

[ (2) Regional plans shall be consistent with the four major implementation priority levels identified above and with all applicable Commission policies and rules.]

[ (3) An RPC shall submit financial reports at least quarterly on a schedule to be established by the Commission. The financial report shall identify actual implementation costs by county, regional plan priority level and component.]

[ (4) An RPC shall submit performance reports at least quarterly on a schedule to be established by the Commission. The performance report shall reflect the progress of implementing the RPC's regional plan, including the status of equipment, services and program deliverables, in a format to be determined by the Commission.]

(d) [ (e) ] Amendments to Regional Plans. Requests for amendments to regional plans shall be submitted to the Commission for consideration in accordance with Health and Safety Code §771.056 and Commission rules and policies, approval. The Commission shall take action on amendment requests at least four times per fiscal year.

[ (1) An RPC may make changes to its approved regional plan to accommodate unanticipated requirements and/or to prevent disruption of its implementation schedule, contingent upon compliance with all Commission policies and procedures.]

[ (2) Requests for amendments to the regional plan shall be submitted in writing to the Commission. The documentation required for changes will be submitted according to Commission policy. The Commission shall take action, no fewer than four times annually, on any regional plan amendment request submitted for approval.]

[ (3) Emergency situations requiring amendments to regional plans that require additional funding may be presented to the Commission for review and consideration contingent upon the availability of such funds within the Program Budget level priorities in subsection (c) of this section.]

(e) [ (f) ] Allocation of Appropriated Funds to an RPC [ Revenue ].

(1) Service Fee : [ allocation-- ]Consistent with Health and Safety Code §§771.056(d) , 771.071(f), 771.0711(c), 771.075, 771.0751, 771.077(e), 771.078(b) and (d), and 771.079(c), and the Commission's biennial appropriation from the Texas Legislature, [ and 771.078 ] the Commission shall allocate, by contract, service fee funds [ revenue ] to an RPC contingent on the availability of appropriated funds.

(2) Equalization Surcharge : Consistent with Health and Safety Code §§771.0711(j), 771.072(d) and (f), 771.075, 771.0751 and 771.078(e), and the Commission's biennial appropriation from the Texas Legislature, the Commission shall allocate, by contract, equalization surcharge funds to an RPC contingent on the availability of appropriated funds. [ Funds ]

[ (A) Within the context of Health and Safety Code section 771.056(d), the Commission shall consider any revenue insufficiencies to represent need for equalization surcharge funding support]

[ (B) Consistent with this rule, the Commission shall allocate, by agreement, equalization surcharge funds and service fees to RPCs based upon the Commission's statewide strategic plan and contingent upon the availability of appropriated funds over a two year period.]

[ (C) The Commission may allocate equalization surcharge to an emergency communication district (District) based on District requests and availability of appropriated funds.]

[ (D) Equalization surcharge funds shall be allocated first to recipients requiring such funds for administrative budgetary purposes, followed by the Program Budget level priorities in subsection (c) of this section.]

[ (E) If sufficient equalization surcharge funds are not available to fund all RPC regional plan and District requests, funds shall be allocated to provide a consistent level of 91-1 service throughout the State of Texas in accordance with the Program Budget level priorities in subsection (c) of this section. Allocation methods may include, but are not limited to, the following:]

[ (i) In reverse order of priority, reducing the number of priority level components supported with equalization surcharge funds; and/or]

[ (ii) In order of priority, proportionally allocating available funds among requesting agencies.]

[ (F) The Commission may elect to hold a balance of equalization surcharge funds in reserve for emergencies and other contingencies.]

[ (g) Funding Parameters for Ancillary Equipment. Ancillary Equipment includes the following when the equipment supports 9-1-1 call delivery: surge protection devices, emergency power equipment, voice recorders, and paging systems. An RPC shall refer to the strategic planning guidelines for instructions as to the appropriate budget line item to which the costs for purchase and maintenance of these items should be assigned.]

[ (1) Paging Systems. Funding for the paging systems may be approved when such systems are the most effective means of 911 call delivery. Funding for pagers (receivers) will be limited to necessary core responders. The Commission will fund the actual cost of the pagers not to exceed $450 per pager.]

[ (2) Voice Recording Equipment. Voice loggers may be approved when the primary use of the equipment is in support of the 9-1-1 call-taking and calldelivery function. Extra capacity on such systems may be used for other public safety functions (such as dispatch).]

[ (A) The Commission will normally fund voice recording capability in a PSAP to record the conversation on 9-1-1 lines and administrative or 10-digit emergency lines in order to also accommodate wireless, telematics, and Voice over IP 9-1-1 emergency calls.]

[ (B) The Commission will normally fund recording capability to record the transfer of an emergency call from the PSAP first answering the call to the agency that is responsible for providing the required emergency services.]

[ (C) The funding of recording devices to transfer information from another recorder will be approved only upon specific justification of need.]

[ (D) The following guidelines will apply to determine the amount to be funded by the Commission:]

[ (i) For a 2 position PSAP, the Commission will fund the actual cost of the recording system not to exceed $15,000; or]

[ (ii) For PSAPs with 3 positions or more, the Commission will fund the actual cost of the recording system not to exceed $25,000.]

[ (E) The Commission will consider funding of recording capabilities greater than those suggested by the guidelines when sufficient justification is provided as part of a regional plan.]

[ (3) Emergency Power Equipment. Each PSAP location should be evaluated by the RPC to determine if the emergency power system needs to be updated to insure the ability to answer 9-1-1 calls in the event that commercial power is interrupted. Emergency power equipment should be evaluated and tested on a regular schedule. Other considerations include:]

[ (A) An uninterrupted power source (UPS) should be considered as basic emergency power equipment. A UPS should provide continuous power to keep essential 9-1-1 system components functioning for a short period of time until generator or other emergency power equipment become operable, if necessary. A UPS primarily functions continuously to maintain a clean source of commercial power.]

[ (B) Generators should be considered as auxiliary emergency power equipment and should directly support an existing (or planned) 9-1-1 system. A generator should provide continuous power to keep 9-1-1 equipment specific to the PSAP functioning.]

[ (C) The following guidelines will apply to determine the amount of generator costs to be funded by the Commission:]

[ (i) For a 2 position PSAP, the Commission will fund the actual cost of the generator not to exceed $25,000.]

[ (ii) For PSAPs with 3 positions or more, the Commission will fund the actual cost of the generator not to exceed $40,000.]

[ (4) Funding may be approved by the Commission for surge protection devices when they are used for protection of 9-1-1 specific electronic equipment. A complete evaluation of grounding at 9-1-1 PSAPs may be funded by the Commission.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 23, 2007.

TRD-200701514

Paul Mallett

Executive Director

Commission on State Emergency Communications

Earliest possible date of adoption: June 3, 2007

For further information, please call: (512) 305-6930


Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 354. MEDICAID HEALTH SERVICES

Subchapter A. PURCHASED HEALTH SERVICES

Division 9. AMBULANCE SERVICES

1 TAC §§354.1111, 354.1113, 354.1115

The Texas Health and Human Services Commission (HHSC or Commission) proposes amendments to the following rules related to Medicaid ambulance services: §354.1111, Definitions; §354.1113, Additional Claim Information Requirements; and §354.1115, Authorized Ambulance Services.

Background and Justification

The proposed amendments align Medicaid rules with the statutory requirement to obtain prior authorization for non-emergency ambulance transport (Human Resources Code, §32.024(t)). Other changes to the rule include updating terminology and reorganizing the rule content.

Section-by-Section Summary

Changes to §354.1111, Definitions, reflect the reorganization of the Health and Human Services agencies pursuant to House Bill 2292, 78th Legislature, Regular Session, 2003. The proposal also amends the definition of "emergency medical condition" to include psychiatric disturbances, or symptoms of substance abuse and to track the definitions of "emergency medical condition" found in 42 Code of Federal Regulations 438.114(a) and 489.24(b). Other definitions are updated or removed from the rule as a result of revisions to the corresponding sections 354.1113, Additional Claim Information Requirements, and 354.1115, Authorized Ambulance Services.

Section 354.1113, Additional Claim Information Requirements, is revised to specify what must be included to document medical necessity on ambulance claims, including the requirement that transport documentation substantiate the level of service and mode of transportation. The rule also requires that a prior authorization number for nonemergency services be obtained before an ambulance is used to transport a recipient. The rule additionally clarifies the types of supporting documentation that the ambulance provider and requesting provider must maintain and make available if requested by the Office of the Inspector General or the Commission or its designee; examples of supporting documentation were deleted from this rule, and will be included instead in policy.

Section 354.1115, Authorized Ambulance Services, is amended to specifically reflect the requirements found in §32.024(t) of the Human Resources Code concerning prior authorization for nonemergency ambulance transportation. Physicians, nursing facilities, health care providers, or other responsible parties will be required to obtain authorization from the Commission or its designee before an ambulance can be used to transport a recipient in a non-emergency situation. The Commission has 48 hours to respond to the request once it is received. The rule also outlines the circumstances under which the Commission will grant immediate authorization for transport and the process an ambulance provider should follow to receive payment in cases where the requesting provider did not receive a required prior authorization.

Non-substantive terminology changes are made throughout the chapter, including replacing references to the Texas Department of Health with the Health and Human Services Commission.

Fiscal Note

Thomas M. Suehs, Deputy Executive Commissioner for Financial Services, has determined that during the first five years the amended rules are in effect there will be no fiscal impact to state government. The proposed rules will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Small and Micro-Business Impact Analysis

Mr. Suehs has also determined that there will not be an effect on small businesses or micro businesses to comply with the proposed amendments, as they will not be required to alter their business practices as a result of the rules. There are no anticipated economic costs to persons who are required to comply with the proposed rules. There is no anticipated negative impact on local employment.

Public Benefit

Chris Traylor, Associate Commissioner for Medicaid and CHIP, has determined that for each of the first five years the proposed rules are in effect, the public will benefit from the adoption of the rules. The anticipated public benefit, as a result of enforcing the proposed amendments, is consistency in availability of ambulance services.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by the Government Code, §2001.0225. A "major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

Takings Impact Assessment

HHSC has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under the Government Code, §2007.043.

Public Comment

Written comments on the proposal may be submitted to Garry Walsh, Senior Policy Analyst, Medicaid/CHIP Division, Texas Health and Human Services Commission, P.O. Box 85200, Austin, TX 78708-5200, Mail Code H-390 91X; by fax to (512) 506-7808; or by e-mail to Garry.Walsh@hhsc.state.tx.us within 30 days of the publication of this proposal in the Texas Register.

Public Hearing

A public hearing is scheduled for May 24, 2007 from 9:00 a.m. to 10:00 a.m. in the HHSC Lone Star Conference Room at 11209 Metric Boulevard, Austin, Texas 78758. Persons requiring further information, special assistance, or accommodations should contact Meisha Spencer at (512) 491-1453.

Statutory Authority

The amendments are proposed 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.

The proposed amendments affect the Human Resources Code, Chapter 32, and the Texas Government Code, Chapters 531 and 533. No other statutes, articles, or codes are affected by this proposal.

§354.1111.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Ambulance provider--A provider of ambulance services who:

(A) is enrolled as an ambulance provider in [ with ] the Texas Medicaid Program [ department or its designee ] to provide ambulance services for Medicaid recipients [ clients ];

(B) is licensed with the Department of State Health Services [ Texas Department of Health ], Emergency Medical Services Division;

(C) is enrolled in Medicare;

(D) agrees to accept assignment on all Medicare/Medicaid claims; and

(E) agrees to provide these services according to state and local laws, regulations, and guidelines governing ambulance services.

(2) Appropriate facility--The nearest [ Medicaid-enrolled ] medical facility that is equipped to provide medical care for the illness or injury of the Medicaid recipient [ client ] involved. It is the institution, equipment, personnel, and capability to provide the services necessary to support the required medical care [ , and the distance to the facility ] that determine whether a facility is appropriate.

(3) Commission--Health and Human Services Commission [ Department--Texas Department of Health (department) ].

(4) Designee--The [ department's ] contractor responsible for reimbursing Medicaid providers of [ for ] ambulance transport services for Medicaid recipients [ clients ].

(5) Emergency medical condition--A medical condition (including emergency labor and delivery) manifesting itself by acute symptoms of sufficient severity (including severe pain , psychiatric disturbances, or symptoms of substance abuse ) such that a prudent layperson with an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention [ could reasonably be expected ] to result in one of the following:

(A) placing the recipient's [ client's ] health (or, with respect to a pregnant woman, the health of the woman or her unborn child) in serious jeopardy;

(B) serious impairment to bodily functions; or

(C) serious dysfunction of any bodily organ or part.

(6) Emergency transport-- Transport [Ambulance transport service] provided by a [ Medicaid-enrolled ] ambulance provider for a Medicaid recipient [ client ] whose condition meets the definition of an emergency medical condition. [ Examples of conditions appropriate for emergency transports include, but are not limited to, acute and severe illnesses, untreated fractures, loss of consciousness, semiconsciousness, seizing during transport, acute or severe injuries from auto accidents, and extensive burns. Conditions requiring CPR in transit or the use of above-routine restraints for the safety of the client or crew may also be considered emergencies ]. Facility-to-facility transports are [ may be ] appropriate as emergencies if the required [ emergency ] treatment for the emergency medical condition is not available at the first facility.

(7) Non - emergency transport-- Transport provided by a ambulance provider for a Medicaid recipient to or from a scheduled medical appointment, to or from another licensed facility for treatment, or to the recipient's home after discharge from a hospital. Non-emergency transport is appropriate when the Medicaid recipient's medical condition is such that the use of an ambulance is the only appropriate means of transport, e.g., alternate means of transport are medically contraindicated. [ Ambulance transport service, to or from a medical appointment, for a Medicaid client who requires treatment in another location and who is so severely disabled that the use of an ambulance is the only appropriate means of transfer. ]

(8) Medically necessary-- When the condition of the Medicaid recipient meets the definition of emergency medical condition or meets the requirements for non-emergency transport. [ The condition of the Medicaid client is such that the use of any other method of transportation is contraindicated and, in the case of a client who is severely disabled, there is no other suitable transportation. ]

[ (9) Severely disabled--A Medicaid client whose physical condition limits his mobility and requires the client to be bed-confined at all times, unable to sit unassisted at all times, or requires continuous life-support systems (including oxygen or intravenous infusion). ]

§354.1113.Additional Claim Information Requirements.

(a) In addition to the general requirements in §354.1001 of this title (relating to Claim Information Requirements), the following information is required on claims for ambulance services:

(1) Documentation of medical necessity in accordance with codes representing medical conditions as designated by the Commission:

(A) The transport documentation must substantiate the level of service and mode of transport provided;

(B) Reimbursement is recouped when the documentation does not substantiate that the level of service and mode of transport provided accurately matches the level of service and mode of transport claimed; and

(C) The level of service and mode of transport provided must be medically necessary based on the clinical situation and needs of the recipient;

(2) [ (1) ] Type [ type ] of ambulance service provided ( e.g, air, ground, or boat);

(3) [ (2) ] Origin [ origin ] and destination of each separate trip;

(4) [ (3) ] Charges [ charges ] for ambulance services, including [ both ] base rates and mileage rates ; and [ , and written justification of the number of miles traveled; and]

[ (4) appropriate supporting documentation requested by the Texas Health and Human Services Commission or its designee to support the determination of the medical necessity and appropriateness of the ambulance transport. Examples of supporting documentation include, but are not limited to, transferring records (medical; emergency room records from transferring hospital); ambulance run sheets; time of transport; acuity of client; distance of transport; traffic patterns; and actual distance to nearest appropriate facility. ]

(5) Prior authorization number (PAN).

(b) Obtaining a prior authorization number.

(1) A PAN for non-emergency transports must be obtained before an ambulance is used to transport a recipient.

(2) A PAN for out-of-state ambulance transports must be obtained before an ambulance is used to transport a recipient.

(c) Supporting documentation is required to be maintained by both the ambulance provider and the requesting provider including a physician, nursing facility, health care provider or other responsible party. Supporting documentation is to be made available if requested by the Office of Inspector General (OIG) or the Commission or its designee.

(1) An ambulance provider is required to maintain documentation that represents the recipient's medical conditions and other clinical information to substantiate medical necessity and the level of service and mode of transportation requested. This supporting documentation is limited to documents developed or maintained by the ambulance provider.

(2) Physicians, nursing facilities, health care providers or other responsible parties are required to maintain physician orders related to requests for prior authorization of non-emergency and out-of-state ambulance services. These providers must also maintain documentation of medical necessity for the ambulance transport.

§354.1115.Authorized Ambulance Services.

In [ These requirements are in ] addition to the requirements [ as ] stated in this section, a provider must comply with §354.1001 [ §29.1 ] of this title (relating to Claim Information Requirements), and §354.1113 [ §29.902 ] of this title (relating to Additional Claim Information Requirements).

(1) Emergency Ambulance Transportation. The Commission [ department ] or its designee will reimburse [ reimburses ] a Medicaid-enrolled provider for the emergency transport [ transportation ] of a Medicaid recipient with [ whose condition conforms with the definition of ] an emergency medical condition in accordance with the following criteria [ as stated in §29.901 of this title (relating to Definitions) and ]:

(A) Transport [ the transportation ] must be to an appropriate facility [ the nearest facility capable of providing the appropriate level of care for the recipient's condition ]. If the transport [ transportation ] is made to a facility other than an appropriate facility [ the nearest facility ], payment is limited to the amount that would be payable to an appropriate facility [ the nearest facility ]; or

(B) Transport [ transportation ] by air or boat ambulance is reimbursable if the time and distance required to reach an appropriate facility [ the nearest facility capable of providing the appropriate level of care for the recipient's condition ] make the transport [ transportation ] by ground ambulance [ unreasonable, ] impractical[ , ] or would endanger the life or safety of the recipient. If the recipient's medical condition does not meet the emergency air or boat criteria, but does meet the emergency ground transportation criteria, the payment to the provider is limited to the amount that would be payable at the emergency ground transportation rate.

(2) Non - emergency Ambulance Transportation. The Commission [ department ] or its designee may reimburse [ reimburses ] a Medicaid-enrolled ambulance provider for [ the ] non - emergency transport [ transportation of a Medicaid recipient. under the following conditions: ] when the following requirements are met:

(A) A physician, nursing facility, health care provider, or other responsible party, shall obtain authorization from the Commission or its designee before an ambulance is used to transport a recipient in circumstances not involving an emergency. [ the recipient is severely disabled as defined in §29.901 of this title; ]

(i) Except as provided by clause (iii) of this subparagraph, a request for authorization must be evaluated by the Commission or its designee based on the recipient's medical needs and may be granted for a length of time appropriate to the recipient's medical condition.

(ii) Except as provided by clause (iii) of this subparagraph, a response to a request for authorization must be made by the Commission or its designee not later than 48 hours after receipt of the request.

(iii) A request for authorization must be granted immediately by the Commission or its designee and must be effective for a period of 180 days from the date of issuance if the request includes a written statement from a physician that:

(I) States that alternative means of transporting the recipient are contraindicated; and

(II) Is dated not earlier than the 60th day before the date on which the request for authorization is made.

[ (B) the severely disabled recipient can not be transported by any means other than an ambulance without endangering the health or safety of the recipient; and ]

[ (C) the nonemergency ambulance transportation of the severely disabled Medicaid recipient is to or from a scheduled medical appointment and authorization has been received from the department or its designee.]

[ (i) The prior authorization for nonemergency ambulance transportation will be based upon the following: ]

[ (I) the recipient's medical needs and disability; and ]

[ (II) duration of time if regular transportation will be required as a result of the recipient's medical needs and disability. ]

[ (ii) The prior authorization request must be approved or denied by the department or its designee not later than 48 hours after receipt of a request unless clause (iii) of this subparagraph applies. ]

[ (iii) A request for authorization must be immediately granted and must be effective for a period of 180 days from the date of issuance if the request includes a written statement from a physician that: ]

[ (I) states that alternative means of transporting the recipient are contraindicated; ]

[ (II) is dated not earlier than the 60th day before the date on which the request for authorization is made; and ]

[ (III) is submitted on the Texas Department of Health approved Physician Certification Form. ]

(B) A person denied payment for ambulance services rendered is entitled to payment from the nursing facility, healthcare provider, or other responsible party that requested the services if:

(i) Payment under the Medicaid program is denied because of lack of prior authorization; and

(ii) The person provides the nursing facility, healthcare provider, or other responsible party with a copy of the bill for which payment was denied.

(3) Hearings. For information about recipient fair hearings, refer to the Commission's fair hearing rules, Chapter 357 of this title (relating to Hearings). [ Recipient Fair Hearing. A denial, delay, reduction, or modification of ambulance transportation services may be appealed by the recipient under the department's fair hearing rules as stated in Chapter 36 of this title (relating to Medicaid Program Appeals Procedures). ]

(4) Provider Appeal. An ambulance provider denied payment for services rendered because of failure to obtain prior authorization, or because a request for prior authorization was denied, is entitled to appeal the denial of payment to the Commission or its designee. A denial of a [ transportation ] claim may be appealed by a provider under the Commission's [ department's ] appeals procedures contained in the Texas Medicaid Provider Procedures Manual and §354.1003 of this title (relating to Time Limits for Submitted Claims) .

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 20, 2007.

TRD-200701511

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: June 3, 2007

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


Chapter 355. REIMBURSEMENT RATES

Subchapter J. PURCHASED HEALTH SERVICES

Division 3. PHYSICIAN SERVICES

1 TAC §355.8043

The Health and Human Services Commission (HHSC) proposes to add new §355.8043 to Chapter 355 of Title 1 of the Texas Administrative Code. Section 355.8043 establishes the methodology HHSC will use to distribute supplemental Medicaid Upper Payment Limit (UPL) payments to certain physicians.

Background and Purpose

HHSC requested approval from the Centers for Medicare and Medicaid Services (CMS) to implement a supplemental payment program to state-affiliated physician group practices through the submission of a State Plan Amendment (SPA) on June 30, 2004. The change in reimbursement practice recognizes the unique role state-affiliated physician group practices play in providing services to Medicaid recipients. As a result of this change in methodology, the State will obtain additional federal revenue for state-owned medical schools that bill Medicaid. The state matching funds required to draw down federal dollars will be provided by the state-owned medical schools. The effective date of this SPA is May 1, 2004.

Fiscal Note

Thomas M. Suehs, Deputy Executive Commissioner for Financial Services, has determined that the proposed new rule is not expected to increase state expenditures, but will increase the amount of federal matching funds to the State. During State Fiscal Year 2007, HHSC estimates that the proposed new rule will result in increased federal matching funds of $231,923,879; this figure includes retroactive payments for state Fiscal Years 2004 - 2006. HHSC estimates that the state will receive an estimated increase in federal matching funds of $68,000,000, per fiscal year, in subsequent years.

Small Business and Micro-business Impact Analysis

HHSC has determined that there is no adverse economic effect on small businesses or micro-businesses, or on businesses of any size, as a result of enforcing or administering the proposed new rule.

Cost to Persons and Effect on Local Economies

HHSC does not anticipate that there will be any economic cost to persons who are required to comply with this proposed new rule. The new rule will not affect a local economy.

Public Benefit

Mr. Suehs, Deputy Executive Commissioner for Financial Services, determined that, for the first five years the rule is in effect, the public benefit expected as a result of enforcing the proposed new rule is that state-owned physician group practices in the State of Texas will recover more of their cost of treating Medicaid patients.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. A "major environmental rule" is defined to mean a rule, the specific intent of which is, to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

Takings Impact Assessment

HHSC has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

Public Comment

Questions about the content of this proposal may be directed to Lupita Villarreal (512) 491-1178 in HHSC Rate Analysis-Hospital Services. Written comments on the proposal may be submitted to Mrs. Villarreal by facsimile (512) 491-1998; e-mail to Lupita.Villarreal@hhsc.state.tx.us; or by mail to HHSC Rate Analysis-Hospital Services, Mail Code H-400, P.O. Box 85200, Austin, TX 78708-5200, within 30 days of publication in the Texas Register.

Statutory Authority

The new rule is proposed 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 Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

The proposed new rule affects Chapter 531 of the Texas Government Code and Chapter 32 of the Human Resources Code. No other statutes, articles, or codes are affected by this proposal.

§355.8043.Supplemental Payments to Certain Physicians.

Supplemental payments to certain physicians.

(1) Notwithstanding other provisions of this section, supplemental payments are available under this paragraph to physicians who are recognized as essential to the Texas State Medicaid program. To be identified as an essential physician and qualify for a supplemental payment, the physician must be:

(A) A Texas licensed physician;

(B) Enrolled as a Texas Medicaid provider; and

(C) Employed by an eligible physician group practice that is state-owned or operated. Employees under contract with a physician group practice are not included in supplemental payment calculations nor are they eligible for this supplemental payment. Eligible physician group practices consist of those affiliated with:

(i) UT--Southwestern--Effective: 5/1/2004

(ii) UT--San Antonio--Effective: 5/1/2004

(iii) UT--Tyler--Effective: 5/1/2004

(iv) UT--Houston--Effective: 5/1/2004

(v) UTMB--Effective: 5/1/2004

(vi) MD Anderson--Effective: 5/1/2004

(vii) University of North Texas--Effective: 5/1/2004

(viii) Texas Tech--Amarillo--Effective: 5/1/2004

(ix) Texas Tech--El Paso--Effective: 5/1/2004

(x) Texas Tech--Lubbock--Effective: 5/1/2004

(xi) Texas Tech--Odessa--Effective: 5/1/2004

(2) For services rendered by physicians employed by the practices at paragraph (1) of this section, a supplemental payment will be made that is equal to the difference between the Medicaid payments otherwise made and payments at the Medicare Equivalent (specifically the Medicare non facility rate equivalent) of the Average Commercial Rate Payment. This supplemental payment will, for the same dates of service, be reduced by any other supplemental payment found elsewhere in the state plan. Payment will be made quarterly and will not be made prior to the delivery of services.

(3) The Base Period Medicare Equivalent of the Average Commercial Rate to be paid to practitioners affiliated with physician group practices eligible under paragraph (1)(C) of this section, will be determined as follows. The following calculation will be performed separately for each of the practices that employ eligible practitioners. Supplemental payment to each practice will be based on this per practice calculation:

(A) Compute Average Commercial Fee Schedule: For the base period, compute the average commercial allowed amount per Current Procedural Terminology (CPT) Code, including patient share amounts, for the top five payers for procedure codes with payment rates. The top five commercial third-party payers will be determined by total billed charges reported by practice plans as defined in paragraph (1)(C) of this section.

(B) Calculate the Base Period Average Commercial Payment Ceiling: Multiply the Average Commercial Fee Schedule, as determined in paragraph (3)(A) of this section, by the number of times each procedure code was rendered in the base period and paid to eligible plans on behalf of Medicaid beneficiaries, as reported from the Medicaid Management Information System (MMIS). The sum of the product for all procedure codes shall determine the Base Period Average Commercial Payment Ceiling.

(C) Determine the Base Period Medicare Payment Ceiling: For each of the procedure codes used to determine the Average Commercial Payment Ceiling in paragraph (3)(B) of this section, multiply the base period, non-facility Medicare allowed rate from the April release Relative Base Relative Value System (RBRVS) by the number of times each procedure code was rendered in the base period and paid to eligible plans on behalf of Medicaid beneficiaries as reported from the MMIS. The sum of the product for all procedure codes will represent the Base Period Medicare-equivalent Payment Ceiling.

(D) Determine the Base Period Medicare Equivalent of the Average Commercial Rate: Divide the Base Period Average Commercial Payment Ceiling computed in paragraph (3)(B) by the Base Period Medicare Payment Ceiling determined in paragraph (3)(C) of this section.

(E) Periodic Updates to the Base Period Medicare Equivalent of the Average Commercial Rate: The State will update this ratio at least every three years.

(4) Determination of Supplemental Payment.

(A) The supplemental payment ceiling for each physician practice eligible under paragraph (1)(C) of this section, will be determined as follows: The Medicare Equivalent of the Average Commercial Rate is multiplied by the Medicare payment at the non-facility rate per CPT Code, then multiplied by the Medicaid volume by CPT Code for the same period, as reported through the MMIS.

(i) (Medicare Equivalent of the Average Commercial Rate) X (Medicare Payment per CPT Code) X (Medicaid Volume per CPT Code) = Payment Ceiling.

(ii) Medicare payment at the non-facility rate and Medicaid volume for those services are derived from the same period of time.

(B) Determine the Medicaid Supplemental Payment Ceiling: The Medicaid Supplemental Payment for each plan, as described in paragraph (1)(C) of this section, will equal the current period payment ceiling at the Medicare Equivalent of the Average Commercial Rate less all Medicaid payments, including enhanced payments, for procedure codes rendered in the current period and paid to eligible physician group practices on behalf of Medicaid beneficiaries as reported from the MMIS. Medicaid volume and payments will include all available payments and adjustments.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 20, 2007.

TRD-200701512

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: June 3, 2007

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


Division 23. EARLY AND PERIODIC SCREENING, DIAGNOSIS AND TREATMENT (EPSDT)

1 TAC §355.8441

The Texas Health and Human Services Commission (HHSC) proposes to amend Title 1 of the Texas Administrative Code (TAC), §355.8441, by adding paragraph (12) covering the reimbursement methodology for personal care services delivered to Medicaid-eligible clients under age 21.

Background and Justification

Alberto N. v. Hawkins was filed in 1999, in the U.S. District Court for the Eastern District of Texas. Plaintiffs were children who alleged they had been denied access to certain medically necessary in-home Medicaid service, including personal care services (PCS). To meet plaintiffs' needs, and the needs of those similarly situated, HHSC is establishing a personal care services benefit designed especially for THSteps beneficiaries. Currently personal care services for THSteps-eligible beneficiaries are available through the Primary Home Care program operated by the Department of Aging and Disability Services. The proposed new PCS benefit is expected to be operational by September 1, 2007. The personal care services benefit will be available to any THSteps-eligible beneficiary who requires assistance with activities of daily living, instrumental activities of daily living, and health-related functions due to a physical, cognitive, or behavioral limitation related to his or her disability or chronic health condition, regardless of diagnosis, type of illness, or condition. This proposed reimbursement methodology rule accompanies new personal care services program rules at 1 TAC §§363.601, 363.603, 363.605, and 363.607, which were previously proposed in the April 16, 2007, issue of the Texas Register. In conjuction with this rule, HHSC is proposing new §355.8443 of this title (relating to Reimbursement Methodology for School Health and Related Services (SHARS)) to be published in the May 11, 2007, issue of the Texas Register.

Section-by-Section Summary

Proposed §355.8441(12)(A) provides that the reimbursement methodology for personal care services delivered by school districts is located at §355.8443, relating to the Reimbursement Methodology for School Health and Related Services (SHARS).

Proposed §355.8441(12)(B) describes the reimbursement methodology for personal care services delivered by providers other than school districts as fees determined by HHSC or its designee using at least one of the following methods: a review of rates paid to providers delivering similar services; modeling using an analysis of other data available to HHSC; or a combination of the two. Personal care services delivered under the Consumer Directed Services (CDS) payment option will be reimbursed in accordance with §355.114, relating to the Consumer Directed Services Payment Option.

Fiscal Note

Thomas M. Suehs, Deputy Executive Commissioner for Financial Services, has determined that during the first five-year period the proposed rules are in effect there will be a fiscal impact to state government of $53.6 million for state fiscal year (SFY) 2008, $55.6 million for SFY 2009, $57.0 million for SFY 2010, $58.3 million for SFY 2011, and $59.7 million for SFY 2012. The proposed rules will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Small and Micro-business Impact Analysis

Mr. Suehs has also determined that there will be no effect on small businesses or micro businesses to comply with the proposal, as they will not be required to alter their business practices as a result of the rule. There are no anticipated economic costs to persons who are required to comply with the proposed rule. There is no anticipated negative impact on local employment.

Public Benefit

Carolyn Pratt, Director of Rate Analysis, has determined that for each year of the first five years the proposed rules are in effect, the public will benefit from the adoption of the amendment. The anticipated public benefit, as a result of enforcing the amendment, will be to provide additional personal care services to the Medicaid population under 21 years of age.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. A "major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

Takings Impact Assessment

HHSC has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under §2007.043 of the Government Code.

Public Comment

Written comments on the proposal may be submitted to Nancy Kimble, Senior Rate Analyst in the Rate Analysis Division, Texas Health and Human Services Commission, P.O. Box 85200, MC-H400, Austin, Texas 78708-5200; by fax (512) 491-1983 or by e-mail at Nancy.Kimble@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register.

Statutory Authority

The amendment is proposed 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 Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

The proposed amendment affects the Human Resources Code, Chapter 32, and the Texas Government Code, Chapter 531. No other statutes, articles, or codes are affected by this proposal.

§355.8441.Reimbursement Methodologies for Early and Periodic Screening, Diagnosis and Treatment[ -Comprehensive Care Program ] (EPSDT[ -CCP ]) Services.

The following are reimbursement methodologies for services provided under the Early and Periodic Screening, Diagnosis and Treatment[ -Comprehensive Care Program ] (EPSDT[ -CCP ]) program, delivered only to Medicaid clients under age 21 , also known as the Texas Health Steps [ CCP ] (THSteps[ -CCP ])[ , only to client under age 21 ]. Reimbursement methodologies for services provided to all Medicaid clients, including clients under age 21, are located elsewhere in this chapter.

(1) THSteps[ -CCP ] counseling and psychotherapy services are reimbursed to freestanding psychiatric hospitals and facilities in accordance with §355.8063 of this title (relating to Reimbursement Methodology for Inpatient Hospital Services). The reimbursement methodologies for counseling and psychotherapy services provided to all Medicaid clients are located elsewhere in this chapter.

(2) - (11) (No change.)

(12) Personal care services (PCS) are reimbursed in accordance with the following Medicaid reimbursement methodologies for the applicable provider type:

(A) School districts delivering PCS under School Health and Related Services (SHARS) are reimbursed in accordance with §355.8443 of this title (relating to Reimbursement Methodology for School Health and Related Services (SHARS)); and

(B) Providers other than school districts delivering PCS are reimbursed as follows:

(i) PCS and PCS delivered in conjunction with delegated nursing services are reimbursed fees determined by HHSC or its designee. The fees are determined using at least one of the following methods: a review of rates paid to providers delivering similar services; modeling using an analysis of other data available to HHSC; or a combination thereof, as determined appropriate by HHSC.

(ii) PCS delivered through the Consumer Directed Services (CDS) payment option are reimbursed in accordance with §355.114 of this title (relating to Consumer Directed Services Payment Option).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 20, 2007.

TRD-200701513

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: June 3, 2007

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