TITLE administration

Part XV. Health and Human Services Commission

Chapter 355. Medicaid Reimbursement Rates

Subchapter C. Reimbursement Methodology for Nursing Facilities

1 TAC §§355.307, 355.401

The Health and Human Services Commission (HHSC) proposes amendments to §355.307, concerning reimbursement methodology for nursing facilities; and §355.401, concerning allowable and unallowable costs, in its Medicaid Reimbursement Rates chapter. The purpose of the amendments is to allow nursing facilities to receive supplemental Medicaid reimbursement for children who qualify for the Texas Index for Level of Effort (TILE) heavy-care case mix classification and require daily care of a tracheostomy. Qualifying residents will be eligible to receive 60% of the total ventilator-dependent supplemental reimbursement. Children with tracheostomies who also are ventilator-dependent will not be eligible to receive both a ventilator-dependent and a tracheostomy supplemental reimbursement.

Gary Bego, Associate Commissioner for Fiscal Policy, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the sections. The effect on state government for the first five-year period the section will be in effect is an estimated additional cost of $150,482 in fiscal year (FY) 1998; $230,596 in FY 1999; $240,481 in FY 2000; $249,431 in FY 2001; and $259,404 in FY 2002.

Mr. Bego, also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that providers of these specialized services for children will receive Medicaid payments more closely aligned with the costs of delivering these services. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Pamela Lawrie at (512) 438-4051 in the Texas Department of Human Services' Rate Analysis Department. Written comments on the proposal may be submitted to Stephen Svadlenak, Health and Human Services Commission, P.O. Box 13247, Austin, Texas 78711, within 30 days of publication in the Texas Register .

The amendments are proposed under the Texas Government Code, Chapter 531, §531.033, which authorizes the Commissioner of Health and Human Services to adopt rules necessary to carry out the Health and Human Services Commission's duties under Chapter 531; and under Texas Government Code, §531.021, which provides the commission with the authority to administer federal medical assistance funds.

The amendments implement Government Code, §531.021 and Human Resources Code §§32.001-32.042.

§355.307. Reimbursement Setting Methodology.

(a)

(No change.)

(b)

Reimbursement determination. For reimbursements calculated using cost reports pertaining to providers' fiscal years ending in calendar year 1995 or 1996, the Texas Board of Human Services (board) determines general reimbursements for medical assistance programs for Medicaid recipients under provisions of the Human Resources Code, Chapter 24 (concerning Reimbursement Methodology). For reimbursements calculated using cost reports pertaining to providers' fiscal years ending in 1997 and subsequent years, the board determines general reimbursements for medical assistance programs for Medicaid recipients under provisions of Subchapter A of this chapter (relating to Cost Determination Process). The board determines reimbursements for nursing facilities based on consideration of Texas Department of Human Services (DHS) staff recommendations. To develop reimbursement rate recommendations for nursing facilities, DHS staff apply the following procedures.

(1)-(2)

(No change.)

(3)

Per diem rate methodology. Staff determine per diem rate recommendations for each of the 11 TILE groups and for the default group according to the following procedures:

(A)-(F)

(No change.)

(G)

Supplemental reimbursement for children with tracheostomies requiring daily care. As of January 1, 1998, qualifying residents may receive a supplement to the per diem rate specified in subparagraph (E) of this paragraph.

(i)

To qualify for supplemental reimbursement, a resident must be less than 22 years of age; require daily cleansing, dressing, and suctioning of a tracheostomy; and be unable to do self care. The daily care of the tracheostomy must be prescribed by a licensed physician.

(ii)

The supplemental reimbursement for children receiving daily tracheostomy care is 60% of the per diem ventilator rate supplement (specified in subparagraph (F)(ii) of this paragraph).

(H)

Children with qualifying conditions as specified in subparagraphs (F) and (G) of this paragraph may receive only one of the supplemental reimbursements. Therefore, children with tracheostomies who also are ventilator-dependent are not eligible to receive both supplemental reimbursements.

§355.401.Allowable and Unallowable Costs: 1997 and Subsequent Cost Reports.

(a)-(b)

(No change.)

(c)

In addition to the requirements of §355.102 and §355.103 of this title (relating to General Principles of Allowable and Unallowable Costs, and Specifications for Allowable and Unallowable Costs), the following apply to costs for the NF program.

(1)-(2)

(No change.)

(3)

Voucherable costs. Except as detailed in subparagraphs (A) and (B) of this paragraph, any expenses directly reimbursable to the provider through a voucher payment and any expenses in excess of the limit, or ceiling, for a voucher payment system are unallowable costs.

(A)

The ventilator dependent supplemental voucher system and the children with tracheostomies supplemental voucher system are [ is ] not subject to the cost reporting restrictions described in this paragraph.

(B)

(No change.)

(4)-(6)

(No change.)

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 February 2, 1998.

TRD-9801448

Marina Henderson

Executive Deputy Commissioner

Health and Human Services Commission

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 424-6576