TITLE 1. ADMINISTRATION

PART 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

CHAPTER 355. REIMBURSEMENT RATES

SUBCHAPTER J. PURCHASED HEALTH SERVICES

DIVISION 5. GENERAL ADMINISTRATION

1 TAC §355.8081

The Texas Health and Human Services Commission (HHSC) proposes to amend §355.8081, Payments for Laboratory and X-ray Services, Radiation Therapy, Physical Therapists' Services, Physician Services, Podiatry Services, Chiropractic Services, Optometric Services, Ambulance Services, Dentists' Services, and Psychologists' Services, under Title 1, Part 15, Chapter 355, Subchapter J, Division 5 of the Texas Administrative Code, to add Medicaid reimbursement for services provided by a licensed psychological associate (LPA) under the direct supervision of a licensed psychologist.

Background and Justification

The Texas State Board of Examiners of Psychologists requires an LPA to work under the supervision of a licensed psychologist and does not allow an LPA to engage in independent practice. Currently, Texas Medicaid does not reimburse licensed psychologists for services provided by an LPA who works under the supervision of a licensed psychologist and does not allow an LPA to enroll as a Medicaid provider.

Medicare allows reimbursement to clinical psychologists for services performed by an LPA under the direct supervision of the clinical psychologist. The Code of Federal Regulations (42 CFR §410.71) states that the services performed by an LPA are covered under Medicare if: the services are performed under the direct supervision of a licensed psychologist; the licensed psychologist is immediately available to provide assistance and direction throughout the time the service is being performed; and the LPA performing the service is an employee of either the licensed psychologist or the legal entity that employs the licensed psychologist.

The proposed rule revision aligns Medicaid policy with Medicare by allowing a licensed psychologist to be reimbursed for services performed by an LPA when the LPA is under the direct supervision of the licensed psychologist. The supervising psychologist will be reimbursed 70 percent of the Medicaid fee that would be paid to a psychologist for the same service. The proposed rule also remains consistent with the Texas State Board of Examiners of Psychologists rules that prohibit an LPA from engaging in independent practice. Allowing Medicaid reimbursement for services provided by an LPA is expected to expand access to behavioral health services because it allows a new provider type to perform Medicaid reimbursable services.

Section-by-Section Summary

The proposed revision to the title of §355.8081 adds the reference to Licensed Psychological Associates' Services.

The proposed new §355.8081(c) allows Medicaid reimbursement to a supervising licensed psychologist or the legal entity employing the supervising licensed psychologist for services provided by an LPA under the direct supervision of the licensed psychologist at 70 percent of the fee paid to psychologists for the same service.

Fiscal Note

Thomas M. Suehs, Deputy Executive Commissioner for Financial Services, has determined that during the first five-year period the proposed rule amendment is in effect there will be a fiscal impact to state government of $1,315,297 (SFY2010); $2,778,136 (SFY2011); $3,747,011 (SFY2012); $4,403,025 (SFY2013); and $4,362,424 (SFY2014). The proposed rule will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Public Benefit

Carolyn Pratt, Director of Rate Analysis, has determined that for each year of the first five years the proposed rule is in effect, the public will benefit by increased access to behavioral and mental health services for Medicaid clients provided by LPAs.

Small and Micro-business Impact Analysis

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

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 Dan Huggins, Director of Acute Care Services, Rate Analysis Department, Texas Health and Human Services Commission, P.O. Box 85200, MC-H400, Austin, Texas 78708-5200; by fax to (512) 491-1998; or by e-mail to Dan.Huggins@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register.

Statutory Authority

The amendment is proposed under Texas Government Code §531.033, which provides the Executive Commissioner of HHSC with broad rulemaking authority; Human Resources Code §32.021 and Texas Government Code §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and 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.

§355.8081.Payments for Laboratory and X-ray Services, Radiation Therapy, Physical Therapists' Services, Physician Services, Podiatry Services, Chiropractic Services, Optometric Services, Ambulance Services, Dentists' Services, [and] Psychologists' Services, and Licensed Psychological Associates' Services.

(a) Subject to qualifications, limitations, and exclusions as provided in this chapter, payment to eligible providers must not exceed the lesser of the provider's billed amount or the amount derived from the methodology described in §355.8085 of this title (relating to Texas Medicaid Reimbursement Methodology (TMRM) for Physicians and Certain Other Practitioners).

(b) Reimbursement for ambulance services is described in §355.8600 of this title (relating to Reimbursement for Ambulance Services). Reimbursement for clinical laboratory services is described in §355.8610 of this title (relating to Reimbursement for Clinical Laboratory Services).

(c) Reimbursement for services provided by a licensed psychologist is described in §355.8085 of this title. Reimbursement for services provided by a licensed psychological associate (LPA) under the supervision of a licensed psychologist is reimbursed to the licensed psychologist at 70 percent of the fee paid to the licensed psychologist for the same service.

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 June 15, 2009.

TRD-200902401

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: July 26, 2009

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