TITLE health-services

Part II. Texas Department of Mental Health and Mental Retardation

Chapter 406. ICF/MR Programs

Subchapter B. Contracting Requirements

25 TAC §406.53

The Texas Department of Mental Health and Mental Retardation (department) proposes amendments to §406.53, concerning provider application requirements specific to ICF/MR, of Chapter 406, Subchapter B, concerning contracting requirements.

The amendments allow the department to manage the capacity of individual state schools and state centers by transferring beds between facilities while ensuring that the capacity of all state schools and state centers does not exceed the number authorized in The Long Term Care Plan for People with Mental Retardation and Related Conditions required by Texas Health and Safety Code, §533.062. Additionally, the amendments permit a residential facility seeking initial certification in the Intermediate Care Facilities for Persons with Mental Retardation (ICF/MR) program to have a capacity of more than six beds if that facility has been funded solely with state funds previously, and is approved by the department to apply to participate in the ICF/MR program as part of the refinancing initiative authorized by the General Appropriations Act, 75th Legislature, Article II, Page 68, Paragraph 9 (1997). The amendments also delete an extraneous "shall" in subsection (a); replace commas with semicolors in subsection (a)(1)(A) and (B); delete an extraneous "the" before "TDMHMR" in subsection (b); substitute "person" for "individual" in subsection (b)(1)(B) to be consistent with terminology used elsewhere in the section; and replace "catchment area" with "local service area" consistent with current department usage. In addition, a reference in subsection (e) to the statutorily required long term care plan is updated with the plan's present title, which is "The Long Term Care Plan for People with Mental Retardation and Related Conditions." In that same subsection, the term "current" is added before the title of the plan to clarify that new ICF/MR applications may not exceed the total ICF/MR program capacity established by the plan in effective at the time of the application. Also in subsection (e), the statutory reference requiring the development of the plan has been added for the convenience of persons complying with the rule and the term "service capacity" is replaced with "authorized bed capacity" to be consistent with terminology used in the plan.

Stephen Zeeck, acting chief financial officer, has determined that for each year of the first five years the proposed amendments are in effect enforcing or administering the amendments does not have forseeable implications relating to costs or revenues of state and local government.

Barry Waller, director, Long Term Services and Supports, has determined that for each year of the first five-year period the amendments as proposed are in effect, the expected public benefit is ability of the department to more efficiently manage the residential capacity of the state schools and state centers, and to draw down additional federal funds for those programs currently funded solely through general revenue. There is no economic cost to persons required to comply with the amendments. There is no adverse economic effect on small businesses required to comply with the amendments because the rules will not impact small businesses. It is not anticipated that the proposed amendments will affect a local economy.

Written comments concerning the proposal may be mailed to Linda Logan, director, Policy Development, Texas Department of Mental Health and Mental Retardation, P.O. 12668, Austin, Texas 78711, or faxed to 512/206-4750, within 30 days of publication of these proposed amendments.

A hearing to accept oral and written testimony from members of the public concerning the proposal has been scheduled for 1:30 p.m., Friday, February 19, 1999, in the department's Central Office Auditorium, Building 2 (main building), 909 West 45th Street, Austin. Persons requiring an interpreter for the deaf or hearing impaired should contact the TDMHMR Central Office operator at least 72 hours prior to the hearing at TDD (512) 206-5330. Persons requiring any other accommodation for a disability should notify Sheila Wilkins, Office of Policy Development, at least 72 hours prior to the hearing at (512) 206-4516 or at the TDY phone number of Texas Relay, 1-800-735-2988.

The amendment is proposed under the Texas Health and Safety Code, §532.015(a), which provides the Texas Board of Mental Health and Mental Retardation with broad rulemaking authority; the Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a), which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas; Acts 1995, 74th Texas Legislature, Chapter 6, §1, (Senate Bill 509), which clarifies the authority of THHSC to delegate the operation of all or part of a Medicaid program to a health and human services agency; and the Human Resources Code, §32.021(c), which provides an agency operating part of the Medicaid program with the authority to adopt necessary rules for the proper and efficient operation of the program. THHSC has delegated to the department the authority to operate the ICF/MR program.

Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a) and (c), are affected by the proposed amendment.

§406.53.Provider Application Requirements Specific to ICF/MR.

(a)

The words and terms in paragraphs (1)-(3) of this subsection, when used in this section, [ shall ] have the following meanings[ , ] unless the context clearly indicates otherwise:

(1)

Applicant -- The individual(s) and/or entities specified on TDMHMR's or its designated agent facility ownership information form who:

(A)

operate a for-profit organization ; [ , ]

(B)

serve as the authorizing entity for a nonprofit organization ; [ , ] or

(C)

(No change.)

(2)-(3)

(No change.)

(b)

All applicants for participation in the ICF/MR program must submit an application to [ the ] TDMHMR or its designated agent for review and approval. The application must include documentation to verify the applicant's ability to ensure the delivery of quality care and services.

(1)

The documentation submitted must indicate that the following persons will have completed the ICF/MR preapplication training course prior to approval of the application:

(A)

(No change.)

(B)

the person [ individual ] who will be responsible for the direct management of the facility; or

(C)

(No change.)

(2)

(No change.)

(c)

All applications must meet the requirements specified in paragraphs (1)-(3) of this subsection.

(1)

The certified capacity of a new facility seeking initial certification or a certified facility seeking to increase its certified capacity may not exceed six beds except for:

(A)

a state school or state center seeking to increase its certified capacity, if the total capacity of all state schools and state centers does not exceed the authorized bed capacity for "campus facilities" as set forth in The Long Term Care Plan for People with Mental Retardation and Related Conditions required by Texas Health and Safety Code, §533.062; and

(B)

a new facility seeking initial certification that has been funded solely with state funds and has been approved by TDMHMR to apply to be refinanced under the ICF/MR program, in accordance with the General Appropriations Act, 75th Legislature, Article II, Page 68, Paragraph 9 (1997).

[ (1)

Requested certification is limited to a maximum of six beds per facility. This includes new facilities seeking initial certification and currently certified facilities seeking to increase the certified bed capacity.]

(2)

(No change.)

(3)

The proposed facility must submit documentation to verify that the mental retardation authority (MRA) in whose local service [ catchment ] area the proposed facility is located has been notified of the development of the proposed facility and the proposed facility's admission criteria.

(d)

(No change.)

(e)

TDMHMR will approve applications that meet all requirements set forth in this section and are within the authorized bed [ service ] capacity set forth in the current "The Long Term Care Plan for People with Mental Retardation and Related Conditions" required by Texas Health and Safety Code, §533.062 [ The Plan on Long-Term Care for People with Mental Retardation or Related Conditions ]. Applications that have not received approval from TDMHMR or its designated agent within a 90-calendar-day period from the date submitted will be withdrawn from the review process and returned to the applicant.

(1)-(3)

(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 January 26, 1999.

TRD-9900539

Charles Cooper

Chair, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 206-4516


Subchapter C. Vendor Payments

25 TAC §406.101

The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes amendments to §406.101 concerning vendor payments, of Chapter 406, Subchapter C, concerning vendor payments.

The amendments stipulate that when an individual's Medicaid eligibility is established after the provision of services in the Intermediate Care Facilities for Persons with Mental Retardation (ICF/MR) Program in Texas, a claim for those services must be received by National Heritage Insurance Company (NHIC) no later than 180 calendar days from the date Medicaid eligibility is established. The current rule allows these claims to be received 30 days after the provider is notified of Medicaid eligibility or 180 calendar days after the end of the service month, whichever is later. The amendment will make the ICF/MR claims submission requirements consistent with those of other Texas human services programs.

Stephen Zeeck, acting chief financial officer, has determined that for each year of the first five years the proposed amendments are in effect enforcing or administering the amendments does not have significant foreseeable implications relating to costs or revenues of state or local government.

Ernest McKenney, director, Medicaid Administration, has determined that for each year of the first five years that the proposed amendments are in effect, the public benefit is to make the claims submission requirements consistent across Texas human services programs. There is no economic cost to persons required to comply with the proposed amendments. There is no adverse economic effect on small businesses required to comply with the amendments. It is not anticipated that the proposed amendments will affect a local economy.

Written comments concerning the proposal may be mailed to Linda Logan, director, Policy Development, Texas Department of Mental Health and Mental Retardation, P.O. 12668, Austin, Texas 78711, or faxed to 512/206-4750, within 30 days of publication of these proposed amendments.

The amendment is proposed under the Texas Health and Safety Code, §532.015(a), which provides the Texas Board of Mental Health and Mental Retardation with broad rulemaking authority; the Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a), which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas; Acts 1995, 74th Texas Legislature, Chapter 6, §1, (Senate Bill 509), which clarifies the authority of THHSC to delegate the operation of all or part of a Medicaid program to a health and human services agency; and the Human Resources Code, §32.021(c), which provides an agency operating part of the Medicaid program with the authority to adopt necessary rules for the proper and efficient operation of the program. THHSC has delegated to the department the authority to operate the ICF/MR program.

Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a) and (c), are affected by the proposed amendment.

§406.101.Vendor Payments.

(a)-(b)

(No change.)

(c)

An Intermediate Care Facility for the Mentally Retarded (ICF/MR) is not entitled to payment if the monthly claim or adjustment for services is not received by the National Heritage Insurance Company (NHIC) within 180 calendar days from the end of the service month [ or within 30 calendar days of notification of the Medicaid eligibility determination, whichever is later ].

(1)

In the event that an individual's Medicaid eligibility is established after the provision of services, the 180 calendar day time period will start on the date eligibility is established.

(2)

All claims and adjustments for months prior to January 1, 1999, must be submitted by March 31, 1999. A claim for services regarding an individual without a valid LOC determination must be received by NHIC within 90 calendar days from the date an individual's Medicaid eligibility is re-established or the date a valid determination of LOC is made, whichever is later.

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 January 26, 1999.

TRD-9900540

Charles Cooper

Chair, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 206-4516


Chapter 409. Medicaid Programs

Subchapter D. Home and Community-Based Services (HCS)

25 TAC §409.103, §409.109

The Texas Department of Mental Health and Mental Retardation (department) proposes amendments to §409.103, concerning payment category assignment and provider claims payment, and §409.109, concerning corrective action and provider sanctions, of Chapter 409, Subchapter D, concerning home and community-based services (HCS).

The amendments to §409.103 clarify the criteria for increasing the level-of-need of an individual who exhibits dangerous behavior and for assigning the "pervasive plus" level-of-need (LON 9) to an individual who exhibits extremely dangerous behavior. The amendments also replace all references to the Level-of-Care Assessment Form (TDHS Form 3650) with references to the department's new MR/RC Assessment Form, which has replaced Form 3650 for purposes of reporting an individual's level-of-care and level-of-need. In addition, an incorrect reference in §409.103(c)(1) is revised from "§406.203 of this title (relating to Eligibility and Review)" to "§406.203 of this title (relating to Eligibility for Level-of-care Determination)."

The amendments to §409.109 modify Principles 18 and 62 of the HCS Consumer Principles for Evidentiary Certification (Figure 1: 25 TAC §409.109). Principle 18 is revised to clarify that a family member of an individual enrolled in the HCS program can be a qualified provider of Foster/Companion Care. Principle 62 is revised to allow for the provision of out-of-home respite services for up to six individuals at a time in a respite facility which is not the residence of any individual.

Stephen Zeeck, acting chief financial officer, has determined that for each year of the first five years the proposed amendments are in effect enforcing or administering the amendments does not have foreseeable implications relating to costs or revenues of state and local government.

Barry Waller, director, Long Term Services and Supports, has determined that for each year of the first five-year period the amendments to §409.103 as proposed are in effect, the public benefit is expected to be a better understanding by HCS providers of the criteria for increasing an individual's LON when the individual exhibits dangerous behavior and for assigning a "pervasive plus" LON. In addition, use by HCS providers of the new assessment form, which already is being used in the Intermediate Care Facilities for Individuals with Mental Retardation (ICF/MR) program, will assure consistency across the Medicaid programs operated by the department. For each year of the first five-year period that the amendments to §409.109 as proposed are in effect, the public benefit is expected to be the potential for providers to offer out-of-home respite services in a respite facility which is not the residence of any individual receiving HCS program services. There is no economic cost to persons required to comply with the amendments. It is not anticipated that the proposed amendments will have an adverse economic effect on small businesses because the amendments impose no additional requirements on HCS providers and the new MR/RC Assessment Form is not more difficult or time-consuming to complete than the TDHS Form 3650 currently in use. It is not anticipated that the proposed amendments will affect a local economy.

A hearing to accept oral and written testimony from members of the public concerning the proposed amendments is scheduled for 1:30 p.m., Tuesday, March 9, 1999, in the auditorium of the department's Central Office, Building 2, 909 West 45 Street, Austin. Persons requiring an interpreter for the deaf or hearing impaired should contact the TDMHMR Central Office operator at least 72 hours prior to the hearing at TDD (512) 206-5330. Persons requiring other accommodations for a disability should notify Sheila Wilkins, Office of Policy Development, at least 72 hours prior to the hearing at (512) 206-4516 or at the TDY phone number of Texas Relay, 1/800-735-2988.

Comments concerning this proposal must be submitted in writing to Linda Logan, Director, Policy Development, Texas Department of Mental Health and Mental Retardation, by mail to P.O. 12668, Austin, Texas, 78711, or by fax to 512/206-4750, within 30 days of publication of this notice.

The amendments are proposed under the Texas Health and Safety Code, §532.015(a), which provides the Texas Board of Mental Health and Mental Retardation with broad rulemaking authority; the Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a), which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas; Acts 1995, 74th Texas Legislature, Chapter 6, §1, (Senate Bill 509), which clarifies the authority of THHSC to delegate the operation of all or part of a Medicaid program to a health and human services agency; and the Human Resources Code, §32.021(c), which provides an agency operating part of the Medicaid program with the authority to adopt necessary rules for the proper and efficient operation of the program. THHSC has delegated to the department the authority to operate the HCS program.

Texas Health and Safety Code, §532.015, Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a) and (c), are affected by the proposed amendments.

§409.103.Payment Category Assignment and Provider Claims Payment.

(a)-(b)

(No change.)

(c)

Reimbursement for HCS foster care, residential supports, and day habilitation is based upon the program participant's payment category assignment and the reimbursement rate for the specific service component provided.

(1)

The payment category for a program participant is based upon a level-of-need (LON) assignment completed by TDMHMR or its designee as part of the level-of-care determination according to §406.203 of this title (relating to Eligibility for Level-of-care Determination [ Eligibility and Review ]). LON assignments are derived from the service level score obtained from the administration of the Inventory for Client and Agency Planning (ICAP) to the program applicant/participant and from selected items on the MR/RC Assessment Form [ Level of Care Assessment Form (TDHS Form 3650) ].

(A)

An HCS Program applicant or participant is assigned one of the following five levels of need:

(i)

An intermittent LON (LON 1) is assigned if the individual's ICAP service level score equals 7, 8, or 9;

(ii)

A limited LON (LON 5) is assigned if the individual's ICAP service level score equals 4, 5, or 6;

(iii)

An extensive LON (LON 8) is assigned if the individual's ICAP service level score equals 2 or 3;

(iv)

A pervasive LON (LON 6) is assigned if the individual's ICAP service level score equals 1;

(v)

Regardless of an individual's ICAP service level score, a pervasive plus LON (LON 9) is assigned if the individual meets the criteria set forth in subparagraph (C) of this paragraph. [ A "pervasive plus" LON (LON 9) is assigned when the TDHS Form 3650 documents an intervention code of 2 on at least one of Items 70-73. ]

(B)

LON assignments 1, 5, and 8, made in accordance with subparagraph (A) of this paragraph may be increased to the next LON if:

(i)

the individual exhibits dangerous behavior that could cause serious physical injury to the individual or others;

(ii)

a written behavior intervention plan has been implemented that is based on ongoing written data, targets the dangerous behavior with individualized objectives, and specifies intervention procedures to be followed when the dangerous behavior occurs;

(iii)

additional staff are constantly prepared to physically prevent the dangerous behavior or intervene when the behavior occurs; and

(iv)

the MR/RC Assessment Form is correctly scored with a "1" in the "Behavior" section.

[(B)

The LON assignment may be modified to take into account extraordinary service needs that result from unusual behavioral challenges. The LON for these individuals combines ICAP service level scores and needs identified on selected items on the TDHS Form 3650. A LON that does not directly correspond to the ICAP service level score will be subject to utilization review by TDMHMR or its designee.]

[(i)

Individuals who have very challenging behaviors that require a behavior intervention program that includes constant preventive actions by additional provider staff will be assigned the next higher LON from the original level. Additional staff may assist in the supervision of other individuals. Individuals originally assigned a pervasive LON will retain that assignment. Very challenging behaviors have the following characteristics:]

[(I)

The behavior presents a danger to the individual or to others;]

[(II)

The behavior warrants individualized objectives which include written intervention procedures;]

[(III)

The frequency of the behavior is reduced only with constant staffing and a highly structured environment,]

[(IV)

The behavior is difficult or impossible for a single staff person to control when it occurs;]

[(V)

The behavior precludes some activities and an environment that cannot be structured. The interventions used to control the behavior require regular documentation, monitoring, and revisions as needed to meet the needs of the individual; and]

[(VI)

TDHS Form 3650 indicates an intervention code of 1 on at least one of Items 70-73.]

(C)

An individual who exhibits extremely dangerous behavior and whose MR/RC Assessment Form is correctly scored with a "2" in the "Behavior" section is assigned a pervasive plus LON (LON 9). Extremely dangerous behavior:

(i)

could be life threatening to the individual or to others;

(ii)

must be targeted with individualized objectives in a written behavior intervention plan that is based on ongoing written data and specifies intervention procedures to be followed when the behavior occurs; and

(iii)

is managed by provider staff whose duty is to exclusively and constantly supervise the individual during the individual's waking hours, which must be at least 16 hours per day.

[(ii)

Individuals who have extremely challenging behaviors which pose a risk of harm to themselves or others and who require constant one-to-one staff supervision, 16 hours per day, will be assigned a pervasive plus LON. Extremely challenging behaviors have the following characteristics:]

[(I)

The behavior may be life-threatening;]

[(II)

The behavior warrants the highest priority of individualized objectives which include a written record of every occurrence of the behavior;]

[(III)

The frequency of the behavior is difficult to reduce;]

[(IV)

The consequences of the behavior are difficult to minimize; and]

[(V)

TDHS Form 3650 indicates an intervention code of 2 on at least one of the Items 70-73.]

(2)

The provider completes the ICAP, enters the resulting service level score on the MR/RC Assessment Form [ TDHS Form 3650 ], and completes the remainder of the form [ Form 3650 ]. Information entered on the MR/RC Assessment Form [ Form 3650 ] must represent the applicant's/participant's current status. A completed MR/RC Assessment Form [ Form 3650 ] is submitted to TDMHMR for initial program enrollment or [ to TDMHMR ] for annual eligibility reevaluation.

(3)

(No Change.)

(4)

TDMHMR may perform [ performs ] annual reevaluations of LON assignments in conjunction with annual reevaluations of ICF-MR LOC.

(A)-(B)

(No Change.)

(5)

Providers requesting a change to a higher LON at times other than the annual reevaluation must submit an MR/RC Assessment Form [ TDHS Form 3650 ] with supporting documentation describing the changes in the individual's needs to TDMHMR in accordance with §409.120 (relating to Utilization Review). A provider in disagreement with TDMHMR's denial to increase an individual's LON assignment may request reconsideration by TDMHMR or its designee. The provider must submit a written request for reconsideration of the denial in accordance with §409.120 of this title (relating to Utilization Review) to TDMHMR within 10 calendar days of notification of the denial.

(d)-(g)

(No change.)

§409.109.Corrective Action and Provider Sanction.

The HCS provider must be in continuous compliance with the HCS Consumer Principles for Evidentiary Certification. Each HCS provider will receive a certification review at least annually in order to maintain certification status. The guidelines specified in §§409.110-409.115 of this title (relating to Hazards to Health, Safety, and Welfare; Level I Action; Level II Action; Level III Action; Unannounced or Intermittent Review Visits; and Discretionary Certification Sanctions) are used by TDMHMR to determine the need for provider sanctions and/or provider onsite follow up review visits that occur before those required concurrently with the recertification review. Current certification review corrective action plans required from the provider and related timelines remain in effect.

Figure 1: 25 TAC §409.109

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 1, 1999.

TRD-9900627

Charles Cooper

Chair, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 206-4516


Subchapter E. Home and Community-based Waiver Services-OBRA (HCS-O)

25 TAC §409.167

The Texas Department of Mental Health and Mental Retardation (department) proposes amendments to §409.167, concerning corrective action and provider sanction, of Chapter 409, Subchapter E, concerning home and community-based waiver services-OBRA (HCS-O).

The amendments to §409.167 modify Principles 22 and 102 of the HCS-O Consumer Principles for Evidentiary Certification (Figure 1: 25 TAC §409.167). Principle 22 is revised to clarify that a family member of an individual enrolled in the HCS-O program can be a qualified provider of Foster/Companion Care. Principle 102 is revised to allow for the provision of out-of-home respite services for up to six individuals at a time in a respite facility which is not the residence of any individual.

Stephen Zeeck, acting chief financial officer, has determined that for each year of the first five years the proposed amendments are in effect enforcing or adminstering the amendments does not have forseeable implications relating to costs or revenues of state and local government.

Barry Waller, director, Long Term Services and Supports, has determined that for each year of the first five-year period the amendments to §409.167 as proposed are in effect, the public benefit is expected to be the potential for providers to offer out-of-home respite services in a respite facility which is not the residence of any individual receiving HCS-O program services. There is no economic cost to persons required to comply with the amendments. It is not anticipated that the proposed amendments will have an adverse economic effect on small businesses because the amendments impose no additional requirements on HCS-O. It is not anticipated that the proposed amendments will affect a local economy.

A hearing to accept oral and written testimony from members of the public concerning the proposed amendments is scheduled for 1:30 p.m., Tuesday, March 9, 1999, in the auditorium of the department's Central Office, Building 2, 909 West 45 Street, Austin. Persons requiring an interpreter for the deaf or hearing impaired or other accommodations for a disability should notify Sheila Wilkins, Office of Policy Development, at least 72 hours prior to the hearing at (512) 206-4516 or at the TTY phone number of Texas Relay, 1 (800) 735-2988.

Comments concerning this proposal must be submitted in writing to Linda Logan, Director, Policy Development, Texas Department of Mental Health and Mental Retardation, by mail to P.O. 12668, Austin, Texas, 78711, or by fax to 512/206-4750, within 30 days of publication of this notice.

The amendments are proposed under the Texas Health and Safety Code, §532.015(a), which provides the Texas Board of Mental Health and Mental Retardation with broad rulemaking authority; the Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a), which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas; Acts 1995, 74th Texas Legislature, Chapter 6, §1, (Senate Bill 509), which clarifies the authority of THHSC to delegate the operation of all or part of a Medicaid program to a health and human services agency; and the Human Resources Code, §32.021(c), which provides an agency operating part of the Medicaid program with the authority to adopt necessary rules for the proper and efficient operation of the program. THHSC has delegated to the department the authority to operate the HCS-O program.

Texas Health and Safety Code, §532.015, Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a) and (c), are affected by the proposed amendments.

§409.167.Corrective Action and Provider Sanction.

The HCS-O provider must be in continuous compliance with the HCS-O Consumer Principles for Evidentiary Certification as described in this section. Each HCS-O provider will receive a certification review at least annually in order to maintain certification status. The guidelines specified in §§409.168-409.173 of this title (relating to Hazards to Health, Safety and Welfare; Level I Action; Level II Action; Level III Action; Unannounced or Intermittent Review Visits; and Discretionary Certification Sanctions) are used by TDMHMR to determine the need for provider sanctions and/or provider on-site follow-up review visits that occur before those required concurrently with the recertification review. Current certification review corrective action plans required from the provider and related timelines that are referenced in the HCS-O Program Provider Manual remain in effect, if applicable.

Figure 1: 25 TAC §409.167

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 1, 1999.

TRD-9900626

Charles Cooper

Chair, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 206-4516


Subchapter L. Mental Retardation Local Authority (MRLA) Program

25 TAC §409.531

The Texas Department of Mental Health and Mental Retardation (department) proposes amendments to §409.531, concerning certification status, of Chapter 409, Subchapter L, concerning mental retardation local authority (MRLA) program.

The amendments to §409.531 modify Principle P14 and add new Principle P16 of MRLA Program Principles for Program Providers (Figure 1: 25 TAC §409.531). Principle P14 is revised to clarify that a family member of an individual enrolled in the MRLA program can be a qualified provider of Foster/Companion Care. Principle P16 allows for the provision of out-of-home respite services for up to six individuals at a time in a respite facility which is not the residence of any individual.

Stephen Zeeck, acting chief financial officer, has determined that for each year of the first five years the proposed amendments are in effect enforcing or adminstering the amendments does not have forseeable implications relating to costs or revenues of state and local government.

Barry Waller, director, Long Term Services and Supports, has determined that for each year of the first five-year period the amendments to §409.531 as proposed are in effect, the public benefit is expected to be the potential for providers to offer out-of-home respite services in a respite facility which is not the residence of any individual receiving MRLA program services. There is no economic cost to persons required to comply with the amendments. It is not anticipated that the proposed amendments will have an adverse economic effect on small businesses because the amendments impose no additional requirements on MRLA. It is not anticipated that the proposed amendments will affect a local economy.

A hearing to accept oral and written testimony from members of the public concerning the proposed amendments is scheduled for 1:30 p.m., Tuesday, March 9, 1999, in the auditorium of the department's Central Office, Building 2, 909 West 45 Street, Austin. Persons requiring an interpreter for the deaf or hearing impaired or other accommodations for a disability should notify Sheila Wilkins, Office of Policy Development, at least 72 hours prior to the hearing at (512) 206-4516 or at the TTY phone number of Texas Relay, 1 (800) 735-2988.

Comments concerning this proposal must be submitted in writing to Linda Logan, director, Policy Development, Texas Department of Mental Health and Mental Retardation, by mail to P.O. 12668, Austin, Texas, 78711, or by fax to 512/206-4750, within 30 days of publication of this notice.

The amendments are proposed under the Texas Health and Safety Code, §532.015(a), which provides the Texas Board of Mental Health and Mental Retardation with broad rulemaking authority; the Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a), which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas; Acts 1995, 74th Texas Legislature, Chapter 6, §1, (Senate Bill 509), which clarifies the authority of THHSC to delegate the operation of all or part of a Medicaid program to a health and human services agency; and the Human Resources Code, §32.021(c), which provides an agency operating part of the Medicaid program with the authority to adopt necessary rules for the proper and efficient operation of the program. THHSC has delegated to the department the authority to operate the MRLA program.

Texas Health and Safety Code, §532.015, Texas Government Code, §531.021(a), and the Texas Human Resources Code, §32.021(a) and (c), are affected by the proposed amendments.

§409.531.Certification Status.

(a)

MRLA program providers contracting with TDMHMR for participation in the MRLA Program must be in continuous compliance with the MRLA Program Principles for Program Providers as described in Mental Retardation Local Authority Program Principles for Program Providers. Each MRLA program provider participating in the MRLA Program will receive a certification review conducted by TDMHMR or its designee at least annually in order to maintain certification status.

Figure 1: 25 TAC §409.531(a)

(1)-(2)

(No change.)

(b)

(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 1, 1999.

TRD-9900625

Charles Cooper

Chair, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 206-4516


Chapter 419. Medicaid State Operating Agency Responsibilities

Subchapter O. Enrollment of Medicaid Waiver Program Providers

25 TAC §§419.701-419.710

The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes new §§419.701-419.710 of Chapter 419, Subchapter O, governing Enrollment of Medicaid Waiver Program Providers, which concerns enrollment of providers in a Medicaid waiver program.

The new sections establish the process and conditions under which TDMHMR enrolls providers of home and community-based services waiver programs including Home and Community-based Services (HCS), Home and Community-based - OBRA Services (HCS-O), and Mental Retardation Local Authority (MRLA) Programs, operated by TDMHMR as authorized by the Health Care Financing Administration in accordance with §1915(c) of the Social Security Act.

Stephen Zeeck, acting chief financial officer of the department, has determined that for each of the first five years the proposed sections are in effect enforcing or administering the sections does not have foreseeable implications relating to costs or revenues for state or local government.

Ernest McKenney, director, Medicaid Administration, has determined that for each year of the first five years the sections are in effect, the public benefit expected as a result of adopting the proposed sections is consistency in minimum qualifications and preparation of providers at the time of enrollment in waiver programs. The probable economic cost to persons required to comply with these sections is the expense necessary for one or two applicant representatives to attend a one to two-day pre-application orientation held in Austin, Texas. It is not anticipated that these sections will have an adverse economic effect on small businesses because the travel expenses are minimal. It is not anticipated that the rule will affect a local economy.

A public hearing will be held at 1:30 p.m. on February 19, 1999, in the auditorium of the main TDMHMR Central Office building (Building 2), 909 West 45th Street, Austin, Texas, to accept oral and written testimony concerning the proposal. Persons needing an accommodation to attend the hearing and persons with special needs requiring assistance should contact Sheila Wilkins, Office of Policy Development, at least 72 hours prior to the hearing by calling (512) 206-4516. Persons with hearing impairments may also call TTY-Message - Texas Relay toll-free at (800) 735-2988.

Comments on the proposal may be submitted to Linda Logan, director, Policy Development, Texas Department Mental Health and Mental Retardation, P.O. Box 12668, Austin, TX 78711-2668, within 30 days of publication of this notice.

The new sections are proposed under the Texas Health and Safety Code, §532.015(a), which provides TDMHMR with broad rulemaking authority; the Texas Government Code, §531.021(a), and the Texas Human Resources Code §32.021(a), which provide the Texas Health and Human Services Commission (THHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas; Acts 1995, 74th Texas Legislature, Chapter 6, §1, (Senate Bill 509), which clarifies the authority of THHSC to delegate the operation of all or part of a Medicaid program to a health and human services agency; and the Human Resources Code, §32.021(c), which provides an agency operating part of the Medicaid program with the authority to adopt necessary rules for the proper and efficient operation of the program. THHSC has designated TDMHMR as the operating agency for selected Medicaid programs.

The sections affect the Health and Safety Code, §532.015, Human Resources Code, §32.021, and Government Code, §531.021.

§419.701.Purpose.

The purpose of this subchapter is to establish the process and conditions under which the Texas Department of Mental Health and Mental Retardation (TDMHMR) enrolls providers of home and community-based services waiver programs operated by TDMHMR including the Home and Community-based Services (HCS), Home and Community-based Services - OBRA (HCS-O), and the Mental Retardation Local Authority (MRLA) Programs as authorized by the Health Care Financing Administration in accordance with §1915(c) of the Social Security Act.

§419.702.Application.

This subchapter applies to any person seeking to participate as a waiver program provider.

§419.703.Definitions.

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

(1)

Affiliate - An employee or independent contractor of an applicant or a person with a significant financial interest in an applicant including, but not limited, to the following:

(A)

if the applicant is a corporation, then each officer, director, stockholder with an ownership of at least 5%, subsidiary, and parent company;

(B)

if the applicant is a limited liability company, then each officer, member, subsidiary, and parent company;

(C)

if the applicant is an individual, then the individual's spouse, each partnership and each partner thereof of which the individual is a partner and each corporation in which the individual is an officer, director, or stockholder with an ownership of at least 5%;

(D)

if the applicant is a partnership, then each partner and parent company; or

(E)

if the applicant is a group of co-owners under any other business arrangement, then each owner, officer, director, or the equivalent thereof under the specific business arrangement, and each parent company.

(2)

Applicant - A person seeking to participate as a program provider in the Home and Community-based Services, Home and Community-based Services - OBRA, or Mental Retardation Local Authority Programs.

(3)

Assignment of a waiver program provider agreement - The transfer of rights, interests, and obligations of the waiver program provider agreement from the program provider to another person.

(4)

Debarred - Termination of rights to continue an existing Medicaid provider agreement, to receive a new Medicaid provider agreement, to participate as a provider or manager of a provider agency, or to make a bid, offer, application or proposal for a TDMHMR Medicaid provider agreement or contract in accordance with §406.63(b)(2) of this title (relating to Debarment and Suspension of Current and Potential Contractor's Rights) of Chapter 406, Subchapter B of this title (relating to ICF/MR Programs Contracting Requirements).

(5)

Excluded - The temporary or permanent exclusion by a state or federal authority of a person from participating as a provider in a federal health care program as defined in Section 1128(f) of the Social Security Act. Exclusion includes refusal to reimburse the person for items and services furnished by that person and refusal to enter into or renew a provider agreement or the termination of the provider agreement with the person.

(6)

HCSSA license - A Home and Community Support Services Agencies license issued by the Texas Department of Health in accordance with Chapter 115 of this title (relating to Home and Community Support Services Agencies).

(7)

LAR (legally authorized representative) - The parent or guardian of an individual who is a minor or the guardian of an individual who is an adult.

(8)

Person - A corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, individual, or any other legal entity.

(9)

Program provider - A person who delivers waiver program services under a waiver program provider agreement with TDMHMR.

(10)

Self-assessment - The document an applicant completes to describe the procedures that are used and the evidence that is presented to demonstrate the applicant's compliance with the program provider principles.

(11)

Title XVIII - Title XVIII (Medicare) of the Social Security Act.

(12)

Title XIX - Title XIX (Medicaid) of the Social Security Act.

(13)

Title XX - Social Services Block Grant of the Social Security Act.

(14)

Waiver program - A home and community-based program serving people with mental retardation and/or related conditions which is operated by TDMHMR, including the HCS, HCS-O, and MRLA programs, as authorized by the Health Care Financing Administration in accordance with Section 1915(c) of the Social Security Act.

(15)

Waiver program provider agreement - A written agreement between TDMHMR and a program provider that describes the conditions for participating as a program provider, a program provider's obligations in providing waiver program services, and the obligations of TDMHMR.

§419.704.Pre-application Orientation.

An applicant must attend the waiver program provider pre-application orientation (PAO) prior to receiving a program provider application packet for enrollment as a program provider.

(1)

TDMHMR conducts a PAO at least twice a year. The date of the PAO and registration process are published in the Texas Register at least 90 calendar days prior to the PAO.

(2)

Upon an applicant's written request, TDMHMR provides the applicant with information regarding the provider application and enrollment processes and a registration form for the PAO.

(3)

To attend the PAO, an applicant must submit a completed registration form to TDMHMR no later than 30 calendar days prior to the PAO. The registration is valid only for the PAO announced most recently in the Texas Register. All portions of the registration form must be completed including, but not limited to:

(A)

the name of the waiver program(s) in which the applicant seeks to participate;

(B)

a list of the counties in which the applicant proposes to operate as a program provider;

(C)

the legal name of the applicant and the name of the individual authorized to sign a provider agreement with TDMHMR; and

(D)

the name, title/function, address, and telephone number of not more than two representatives of the applicant who attend the PAO. Each registered applicant representative must be an individual who is responsible for the direct management of the program.

(4)

Admittance to the PAO is limited to the two applicant representatives named on the applicant's registration.

(5)

A person may attend the PAO on behalf of only one applicant.

§419.705.Application Process.

(a)

Upon request, TDMHMR provides a program provider application packet to an applicant representative on the day the applicant representative completes the PAO.

(b)

The completed program provider application packet must be received by TDMHMR no later than 45 calendar days following the PAO. If the last day of this 45-day time period is a Saturday, Sunday, or day on which TDMHMR Central Office is closed, then the period extends through the end of the next day which is not a Saturday, Sunday, or day on which TDMHMR Central Office is closed. Application packets must be delivered in accordance with the application instructions.

(1)

An applicant must complete all portions of the application according to the application instructions including, but not limited to:

(A)

the applicant's operational or organizational plan to ensure sufficient staff resources are available to provide each required waiver service component; and

(B)

the resume or curriculum vita of the applicant's employee or contractor who manages and oversees the direct provision of all services to people who are enrolled in the program that:

(i)

demonstrates the employee or contractor has a minimum of three years' verifiable work experience in planning and providing direct services to people with mental retardation or other developmental disabilities; and

(ii)

contains three verifiable professional references;

(C)

documents necessary to complete and execute a waiver program provider agreement;

(D)

self-assessment; and

(E)

documentation that a representative of the applicant attended the last scheduled PAO.

(2)

TDMHMR may reject a program provider application packet that:

(A)

is incomplete in any aspect;

(B)

contains a self-assessment that demonstrates less than 90% compliance with the program provider principles;

(C)

is received by TDMHMR after the date specified in subsection (b) of this section or is not delivered according to the application instructions;

(D)

is submitted by an applicant whose representative did not complete the most recent PAO;

(E)

contains false information; or

(F)

does not contain original signatures and dates.

(3)

TDMHMR may reject an application packet for good cause which includes, but is not limited to:

(A)

TDMHMR has previously terminated a Medicaid provider agreement or other contract with the applicant or its affiliate within the last three years prior to the application;

(B)

the applicant or its affiliate has been excluded or debarred;

(C)

another state or federal agency has terminated a contract, licensure, or certification of the applicant or its affiliate within the last three years prior to the application date;

(D)

the applicant or its affiliate has an outstanding Medicaid program audit exception or other unresolved financial liability owed to the State of Texas;

(E)

the applicant or its affiliate is ineligible to enroll as a Medicaid provider for reasons relating to criminal history records as set forth in TDMHMR rules; or

(F)

the applicant or its affiliate has terminated a provider agreement in a federal health care program as defined in §1128(f) of the Social Security Act while an adverse action or sanction was in effect.

(4)

After the application due date, TDMHMR reviews all application packets and provides written notification to each applicant advising whether its application is approved or rejected. If an application is approved, the applicant is also informed of the date and time of the next orientation for waiver program providers.

§419.706.Provisional Certification.

(a)

An applicant whose application packet is approved by TDMHMR must attend the orientation for waiver program providers conducted by TDMHMR prior to being provisionally certified.

(b)

Admittance to the orientation for waiver program providers is limited to three representatives for each applicant.

(1)

At least one representative must be the individual who is directly responsible for the administration of the program.

(2)

At least one representative must be the applicant's employee or contractor who manages and oversees the provision of direct services to consumers who are enrolled in the program and who has provided TDMHMR with a resume or curriculum vita meeting the requirements described in §419.705(b)(1)(B) of this title (relating to Application Process).

(3)

A representative may attend on behalf of only one applicant.

(c)

TDMHMR provisionally certifies only those applicants that:

(1)

demonstrate 100% compliance with the program provider principles on the self-assessment by the end of the orientation for waiver program providers and complete the entire orientation for waiver program providers; and

(2)

comply with all requirements of §419.704 of this title (relating to Pre-application Orientation), §419.705 of this title, and this section.

(d)

TDMHMR revokes the provisional certification of a provider that does not submit a copy of its HCSSA license in accordance with §419.707(a) of this title (relating to Provider Agreement).

(e)

An applicant that is not provisionally certified in accordance with subsection (c) of this section or a program provider whose provisional certification has been revoked must re-apply to enroll as a program provider in accordance with this subchapter.

§419.707.Provider Agreement.

(a)

TDMHMR enters into a provider agreement only with a provisionally certified provider who has submitted a copy of its current HCSSA license to TDMHMR no later than 270 calendar days following the provisional certification date. The license must be valid for a minimum of licensed home health services and personal assistance services. If the last day of the 270-day time period is a Saturday, Sunday, or day on which TDMHMR Central Office is closed, then the period extends through the end of the next day which is not a Saturday, Sunday, or day on which TDMHMR Central Office is closed.

(b)

TDMHMR approves a consumer's enrollment in a program of a provisionally certified provider only after the effective date of the waiver program provider agreement as determined by TDMHMR.

§419.708.Provider Certification.

(a)

No later than 120 days following TDMHMR's approval of the enrollment of the first consumer in a provisionally certified provider's program, TDMHMR or its designee conducts a certification review in accordance with Chapter 409, Subchapter D of this title (relating to Home and Community-based Services), Chapter 409, Subchapter E of this title (relating to Home and Community-based Services - OBRA), or Chapter 409, Subchapter L of this title (relating to Mental Retardation Local Authority Program), as applicable.

(b)

TDMHMR may terminate the waiver program provider agreement of a provisionally certified provider that is not certified within 540 calendar days following the effective date of the waiver program provider agreement.

(c)

TDMHMR may terminate the waiver program provider agreement of a provisionally certified provider that was provisionally certified prior to the effective date of this subchapter but is not certified within 365 calendar days following the effective date of this subchapter.

(d)

A program provider whose waiver program provider agreement has been terminated in accordance with subsection (b) or (c) of this section must re-apply to enroll as a program provider in accordance with this subchapter.

§419.709.Deemed Provider Certification.

(a)

Upon request of an HCS-O provider certified in accordance with Chapter 409, Subchapter E of this title (relating to Home and Community-based Waiver Services - OBRA), TDMHMR may, at its discretion, deem the program provider provisionally certified as an HCS provider.

(b)

Upon request of an HCS provider certified in accordance with Chapter 409, Subchapter D of this title (relating to Home and Community-based Services), TDMHMR may, at its discretion, deem the program provider provisionally certified as an HCS-O provider.

§419.710.Waiver Program Provider Agreement Assignment.

(a)

No assignment of a waiver program provider agreement is effective until it is approved in writing by TDMHMR. The effective date of the assignment may not precede the date of TDMHMR's approval of the assignment.

(b)

A program provider must notify TDMHMR Medicaid Administration in writing at least 60 days prior to the proposed assignment of its waiver program provider agreement. This notification must include the legal name of the proposed assignee, proposed date of the assignment, and the provider vendor number. If the program provider fails to provide this notification in a timely manner, approval of the assignment may be delayed.

(c)

Upon approval of the assignment, the program provider (hereafter referred to as the assignor) and the assignee, as indicated, are subject to the following provisions.

(1)

The assignee must keep, perform and fulfill all of the terms, conditions and obligations that must be performed by the assignor under the provider agreement and this subchapter.

(2)

The assignee is subject to all pending conditions which exist against the assignor, including but not limited to, any plan of correction, audit exception, vendor hold, or proposed contract termination.

(3)

The assignor and the assignee are jointly and severally liable to TDMHMR for any liabilities or obligations that arise from any act, event, or condition which occurred or existed prior to the effective date of the assignment and which is identified in any survey, review, or audit conducted by TDMHMR.

(4)

The assignor must complete and submit billing claims to TDMHMR for services provided prior to the approval date of the assignment in accordance with state rules.

(5)

The assignee must complete the enrollment/transfer process within 95 days of the effective date of the assignment if any consumer requests to transfer into or from the assignor's program or any initial enrollments into the assignor's program are pending as of the effective date of the assignment;

(6)

The assignor must give written notification to each consumer or the consumer's LAR in the assignor's program of the proposed assignment, the proposed effective date of the assignment and of the consumer's option to transfer to another program provider.

(7)

The assignee must retain written documentation signed by each consumer or the consumer's LAR verifying that the notification was received and indicates the consumer's or LAR's choice whether to receive services from the assignee after the assignment is effective or to transfer to another program provider.

(d)

TDMHMR does not approve an assignment unless:

(1)

the proposed assignee holds a current waiver program provider agreement with TDMHMR or is eligible to enter into a provider agreement with TDMHMR as specified in §419.707(a) of this title (relating to Provider Agreement);

(2)

consumers are enrolled and receiving services or individuals are pending enrollment (as indicated by the TDMHMR Automated Enrollment and Billing System) in the assignor's program; and

(3)

the assignor and the proposed assignee submit an assignment agreement to TDMHMR that includes:

(A)

a statement that the assignor and assignee agree to the provisions set forth in subsection (c) of this section;

(B)

the effective date of the assignment, the name and address of the assignor and assignee and the provider vendor number to be assigned;

(C)

a statement that the assignment is subject to and contingent upon TDMHMR's written approval of the assignment or the assignment is void;

(D)

the signatures of the authorized representatives of the assignor and the assignee acknowledged before a notary public;

(E)

a blank space for TDMHMR's representative to sign indicating approval of the assignment agreement; and

(F)

any other provision required by law to make the assignment agreement legally enforceable.

(e)

TDMHMR may disapprove an assignment for good cause including, but not limited to:

(1)

a vendor hold on Medicaid payments is currently in effect for a program operated by the proposed assignee; or

(2)

a proposed contract/provider agreement termination is in effect for a program operated by the proposed assignee.

(f)

If TDMHMR approves an assignment, TDMHMR may place a vendor hold on Medicaid payments to the assignor until all findings made from a survey, billing and payment review or audit which has been or is being conducted by TDMHMR are resolved.

(1)

At its discretion, TDMHMR may allow an assignor to obtain a surety bond or an irrevocable letter of credit in order to release the vendor hold prior to completing a survey, billing and payment review, or audit.

(2)

The surety bond or irrevocable letter of credit must be for a period of three years. The three-year period begins with the effective date of the assignment. TDMHMR specifies the amount of the surety bond or letter of credit.

(3)

The surety bond or irrevocable letter of credit must be in a format acceptable to TDMHMR and must not include requirements for TDMHMR to:

(A)

return the original bond or irrevocable letter of credit prior to receipt of payment; or

(B)

submit a sight draft or any other draft or demand requirement other than TDMHMR's letter demanding payment.

(4)

If the assignor submits an acceptable surety bond or irrevocable letter of credit to TDMHMR, TDMHMR releases the vendor hold.

(g)

TDMHMR may recoup Medicaid payments from the assignor or assignee for liabilities or obligations arising from any act, event, or condition which occurred or existed prior to the effective date of the assignment and which is identified in a survey, review, or audit conducted by TDMHMR.

(h)

If TDMHMR approves an assignment, TDMHMR or its designee conducts an on-site certification review within 120 days of the effective date of the assignment in accordance with Chapter 409, Subchapter D of this title (relating to Home and Community-based Services), Chapter 409, Subchapter E of this title (relating to Home and Community-based Waiver Services - OBRA), or Chapter 409, Subchapter L of this title (relating to Mental Retardation Local Authority Program), as applicable.

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 January 26, 1999.

TRD-9900538

Charles Cooper

Chair, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 206-4516


Part XVI. Texas Health Care Information Council

Chapter 1301. Health Care Information

Subchapter B. Collection and Reporting of Health Plan Employer Data and Information Set (HEDIS) from Health Maintenance Organizations (HMO)

25 TAC §§1301.32-1301.34

The Texas Health Care Information Council (the Council) proposes amendments to §§1301.32-1301.34, concerning the collection and reporting of Health Plan Employer Data and Information Set (HEDIS) from health maintenance organizations (HMOs). The amendments are proposed to provide Texas citizens and consumers relevant regional information upon which to make decisions regarding HMOs; to incorporate HMO reporting division definitions as reported to the Texas Department of Insurance (TDI) under 28 TAC §11.304; and to comply with Texas Health and Safety Code, Title 2, Subtitle E Chapter 108.006 (a)(4) relating to building on and not duplicating other state data. The proposed amendment to §1301.32 includes the new terms "Service Area Division" and "HEDIS Guidelines" and adds new language to the terms "HEDIS", "Reporting set measures", "Service Area" and "Testing set measures" to clarify the HEDIS Reporting Manual to be used in this chapter. Section 1301.32 also has numbers assigned to the definitions as required by 1 TAC §91.23. The proposed amendments to §1301.33 remove language requiring this rule to be amended annually. Language is added to §1301.33 (b) that requires HMOs to report HEDIS data from the same division that is currently required by the Texas Department of Insurance. The proposed amendment to §1301.33(c) changes the deadline for data to be received by the Council. The proposed amendments §1301.33(e) and §1301.34 clarify and provide consistency of language in this subchapter. These amendments apply beginning with the 1998 data to be reported in 1999.

Jim Loyd, Executive Director, Texas Health Care Information Council, has determined that for the first five-year period the amended rules are in effect there will be no additional cost to local governments. There are no fiscal implications relating to costs or revenues of the local governments as a result of the amendments to 25 TAC §§1301.32 - 1301.33, because the local governments (Bexar County Hospital District, Harris County Hospital District and Dallas County Hospital District) affected by these amendments maintain, at a minimum, partial ownership of an HMO corporation and do not have multiple service area divisions.

Mr. Loyd estimates that for the first year of the first five-year period no more than $600 will be required by the state as a result of enforcing or administering the amendments. The cost is attributable to receiving and processing an estimated six additional HEDIS data sets at a cost of $100 each per the Council's contract with NCQA. For each of the following years Mr. Loyd estimates the costs to the state will be approximately $1000. This value is based on the $100 per HEDIS data set submitted times the average increase of licensed HMOs in Texas (10) for the last four years. This average increase is high due the 26 new HMOs licensed in 1996.

Mr. Loyd also has determined that for each year of the first five-year period the rules are in effect the public benefit will be a more accurate reflection of HMO operations which may be relied upon by Texas consumers in making informed choices regarding HMO selection.

For the first five years there will be an estimated economic cost of $90,000 annually per data set for the affected HMOs to comply with the proposed amendments. This estimate was calculated from averages of costs reported by seven HMOs on a Survey of Texas HMOs, Costs of HEDIS Data Collection, Verification and Submission to the THCIC (1998), conducted by the Texas Association of Health Plans. The estimate includes $40,000 for data audits, $21,000 for contracting out for the Consumer Assessment of Health Plans Study (CAHPS) and $29,000 for chart review.

A public hearing on the proposed rules has been scheduled for Wednesday, February 24, 1999, at 9:00 a.m. at 4900 North Lamar, Room 1430, Austin, Texas.

Comments on the proposed amendments may be submitted to Jim Loyd, Executive Director, Texas Health Care Information Council, Brown-Heatly Building, 4900 North Lamar OOL-3407, Austin, Texas 78751-2399 no later than 30 days from the date that these proposed rules are published in the Texas Register .

The amendments are proposed under the Health and Safety Code, §108.006, and §108.009. The Council interprets §108.006 as authorizing it to adopt rules necessary to carry out Chapter 108, including rules concerning data collection requirements and rules prescribing a process for providers to submit data. The Council interprets §108.009 as authorizing it to collect data using methods of the health benefit plans industry.

The Texas Health and Safety Code, Chapter 108, §108.006, §108.009, 1 TAC §91.23 and 28 TAC §11.304 are affected by these proposed amendments.

§1301.32. Definitions.

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

(1)

Council--The Texas Health Care Information Council.

(2)

Executive director--The chief administrative officer of the Council, or, in the event the Council is without an executive director, the person designated by the chairperson of the Council to perform the functions and exercise the authority of the executive director.

(3)

HEDIS--An acronym for the Health Plan Employer Data and Information Set, [ Version 3.0, ] published by the National Committee for Quality Assurance. HEDIS is a set of standardized performance measures, designed to allow for the reliable comparison of the performance of managed care health plans. HEDIS covers a broad range of areas: effectiveness of care, accessibility/availability of care, satisfaction with the experience of care, cost of care, stability of the health plan, informed health care choices, use of services, and plan descriptive information. HEDIS is a registered trademark of NCQA. [ A copy is on file and available for review during normal working hours at the Texas Health Care Information Council, 4900 North Lamar, OOL-3407, Austin, Texas 78751. Copies may be purchased from the National Committee for Quality Assurance, 2000 L Street, N.W., Suite 500, Washington, D.C. 20036. ]

(4)

HEDIS data--The information the health maintenance organization collects and reports to the Council in accordance with the provisions of this chapter. Data are collected from January 1st through December 31st annually.

(5)

HEDIS Guidelines - The version of the HEDIS reporting guidelines as specified by the Council.

(6)

HMO--A health maintenance organization as defined in Texas Health Maintenance Organization Act, Texas Insurance Code, Article 20A.02(j), Texas Civil Statutes.

(7)

NCQA--The National Committee for Quality Assurance , 2000 L Street, N.W., Suite 500, Washington, D.C. 20036 .

(8)

Reporting set measures--Those measures specified as "Reporting Set Measures" in the HEDIS Guidelines [ 3.0 Manual and specified as such during the year in which the HEDIS data is collected ].

(9)

Service area- as defined in 28 TAC, Part 1, Chapter 11 Subchapter A §11.2(b) [ The area in which the HMO is licensed to serve its population ].

(10)

Service area division - An operation of a HMO corporation that meets one of the following conditions:

(A)

a distinct and separate operation of a HMO corporation as opposed to other operations of the corporation serving other distinct and separate geographical service areas;

(B)

a separate geographical area whereby the geographical location of an enrollee or a group contract holder is used in determining charges or rates; or

(C)

a service area that crosses state lines or international boundaries is considered to have a separate divisional operation in each state or country and requires separate cost centers and reports.

(11)

Single Service HMO--An HMO offering a single health care service as defined in Texas Health Maintenance Organization Act, Texas Insurance Code, Article 20A.02(r), Texas Civil Statutes.

(12)

Testing set measures--Those measures specified as "Testing Set Measures" in the HEDIS Guidelines [ 3.0 Manual and specified as such during the year in which the HEDIS data is collected ].

§1301.33. Collection and Reporting of Health Plan Employer Data and Information Set (HEDIS) Data by Health Maintenance Organizations (HMOs).

(a)

Any health maintenance organization (HMO) operating in the State of Texas on December 1, 1996, and on that date each year thereafter, shall have a system in place to collect the full HEDIS data set, and shall be required to report HEDIS data, collected during the next calendar year. [ The Council shall update this rule as necessary by November 15th of each year, to reflect changes in legislation, the current version of HEDIS, and other appropriate mandates. ] Single service HMOs which contract as secondary providers with other HMOs to provide services to covered lives which are the same lives covered by the primary HMO, shall report data as necessary to fulfill data reporting requirements under this rule to the primary HMO, which will report HEDIS data to the Council. Single service HMOs, which contract directly with employers to provide specific services, shall report HEDIS data directly to the Council. Basic HMOs which contract as secondary providers with other basic HMOs to provide a range of health care services normally considered to be full health coverage on a specified group of covered lives, e.g., ages 0 to 18 year olds, shall report complete HEDIS data to primary HMOs, with which the secondary HMOs have contracted to provide services, which, in turn, shall report directly to the Council.

(b)

HMOs shall report HEDIS data, by Service area division [ at a minimum, by service areas in which they are licensed ]. Data to be reported shall be a subset of the "Reporting Set Measures" (i.e., this excludes data specified as "Testing Set Measures"), as specified by the Council by November 15th of the year for [ in ] which the data are [ is ] collected. Reporting by any specific subpopulation (e.g., Medicare, Medicaid) will be specified by the Council by November 15th of the year for [ in ] which the data are [ is ] collected.

(c)

The HMO shall report HEDIS data to the Council by the reporting deadline as specified [ HEDIS data specified by the Council on November 15th of the year in which the data is collected shall be reported by the HMO to the Council ] by NCQA or as specified by the executive director (should the date be incompatible with the Council's goals) in the current year [ July 1st of the following year, and shall include HEDIS data collected from January 1st through December 31st ].

(d)

(No change.)

(e)

Any HMO which judges that it cannot meet required performance measure specifications due to either low enrollment (such that sample size requirements are not met) or short time of existence (such that length of time requirements are not met) shall provide the Council with a narrative that documents the reason for not reporting the data for that performance measure. Single service HMOs shall notify the Council to address which measures are applicable to the services they provide. All requests for exemptions from reporting data for any performance area(s) required by this chapter shall be submitted by the HMO on an annual basis, prior to November 15th of the year for [ in ] which the data are [ is ] collected, and processed by the executive director using the following procedures.

(1)-(4)

(No change.)

§1301.34. Verification of Data.

(a)

The entire subset of HEDIS data specified by the Council on November 15th of the year for [ in ] which the data are [ is ] collected, and reported by the HMO to the Council [ by July 1st of the following year, ] shall be verified.

(b)

(No change.)

(c)

Verification of HEDIS data shall be by an independent auditor using guidelines as developed by the National Committee for Quality Assurance (NCQA) in effect on November 15th of the year for [ in ] which the data are [ is ] collected. If no guidelines have been released by NCQA, the data will be verified in accordance with auditing procedures as specified by the Council. These auditing procedures shall be specified by the Council by November 15th of the year for [ in ] which the data are [ is ] collected.

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 1, 1999.

TRD-9900676

Jim Loyd

Executive Director

Texas Health Care Information Council

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 424-6490


Subchapter D. Rules and Procedures for Council Officers, Council Employees, Donors and Donations

25 TAC §§1301.51-1301.54

The Texas Health Care Information Council (Council) proposes new §§1301.51-1301.54, concerning Rules and Procedures for Council Officers, Council Employees, Donors and Donations. The Council is authorized to accept donations of money from a private donor under the Texas Health and Safety Code, §108.006(b)(4) and §108.015. The new sections are being proposed, in part, to establish standards of conduct governing the relationship between the donor and the agency's officers and employees and to describe the procedure for the Council to follow for the acceptances of donations with a value of $500 or more.

Jim Loyd, Executive Director, has determined that for the first five-year period the new rules are in effect there will be no additional cost to local governments. There are no foreseeable fiscal implications relating to costs or revenues of the local governments as a result of 25 TAC §§1301.51-1301.54, because local governments are not be affected by donations or gifts to the Council.

Mr. Loyd estimates that no more than $15 for each donation or gift will be required by the state as a result of enforcing or administering the new sections. The cost is attributable to administrative costs of processing and transferring the donations or gifts according to Government Code, Chapter 575. The estimated cost is derived by the estimated time to process a single donation times the estimated hourly salary of the person involved. The time estimates are thirty minutes (based on monetary donation) and $22.50 ($18.51 starting hourly salary with 5.0% annual increase each year), which came from the Fiscal Division, Texas Department of Health and the Council's Business Manager respectively. Charge estimate for Council staff would be $11.25 per monetary donation. Donations of property (For example office equipment, services or software) may require other Council staff personnel and training time for affected Council staff.

Mr. Loyd also has determined that for each year of the first five-year period the rules are in effect the public benefit will be a reduction in using the Council's budgeted monies. There is no foreseeable economic cost to persons required to comply with 25 TAC §§1301.51-1301.54. The donations shall be deposited in to the Council's Biennial Operating Budget.

Comments on the proposed new rules may be submitted to Jim Loyd, Executive Director, Texas Health Care Information Council, Brown-Heatly Building, 4900 North Lamar OOL-3407, Austin, Texas 78751-2399 no later than 30 days from the date that these proposed rules are published in the Texas Register .

The new rules are proposed under the Texas Health and Safety Code, §108.006 (b)(4) and §108.015, which authorize the Council to accept donations of money from a private donor. The rules are also proposed pursuant to Chapter 575 of the Government Code, which requires agencies to accept gifts of a value of $500 or more by a majority vote of the members in an open meeting. Chapter 575 also requires the minutes of the meeting to reflect the donor's name, a description of the gift, and the gift's purpose. Finally, the new sections are proposed pursuant to Chapter 2255 of the Government Code which requires agencies with authority to receive donations to adopt rules governing the relationship between donors, the agency, its officers and employees.

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

§1301.51. Definitions.

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

(1)

Council - The state agency known as the Texas Health Care Information Council.

(2)

Donation - A gift of property, including money, or services to the Council.

(3)

Donor - An individual, not an employee or officer of the Council, or an organization that gives or offers to give a donation to the Council.

(4)

Employee - A person employed by the Council on a full time or part-time basis, including volunteers, for purposes of this section only.

(5)

Officer - The Council's executive director or the appointed members of the Council.

(6)

Purpose of the Donation - Description regarding the terms of acceptance and distribution or usage of donation.

§1301.52. Administration and Investment of Funds.

(a)

Donated funds shall be deposited into the Council's Biennial Operating Budget and used according to the terms of acceptance of the donation, as stated in §1301.54(b) of this title (relating to Procedure for Acceptance of Donations).

(b)

Donated property or services shall be used according to the terms of acceptance of the donation, as stated in §1301.54(b) of this title.

§1301.53. Relationships.

(a)

Approved Relationships.

(1)

An officer or employee may serve as an officer or director of a donor, except as set forth in subsection (b)(2) of this section.

(2)

An officer or employee may receive compensation for services rendered to a donor, except as set forth in subsection (b)(3) and (4) of this section.

(b)

Disapproved Relationships.

(1)

No agency employee or property may be used by a donor.

(2)

No officer or employee who serves as an officer or director of a donor shall vote on or otherwise participate in any measure, proposal, or decision pending before the donor if the Council might reasonably be expected to have an interest in such measure, proposal, or decision.

(3)

No employee shall accept employment from or engage in any business or professional activity with a donor which the employee might reasonably expect would require or induce the employee to disclose confidential information acquired by reason of the person's official position.

(4)

No employee shall accept employment or compensation from a donor which could reasonably be expected to impair the employee's independence of judgment in the performance of official duties.

(5)

No employee shall make personal investments in association with a donor which could reasonably be expected to create a substantial conflict between the employee's private interest and the interest of the Council.

(6)

No officer or employee shall accept or solicit any donation, gift, favor, or service from a donor that might reasonably tend to influence the exercise of official conduct.

(7)

No officer or employee shall intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised official powers on behalf of a donor or for having performed official duties in favor of a donor.

(8)

The Council shall not solicit or accept a donation from a person required to provide data as written in the Texas Health and Safety Code, Chapter 108 or a person who or a business entity that provides goods or services to the Council for compensation.

(9)

The Council shall not solicit or accept any donation, gift or benefit from a person whom the Council has litigation pending or contemplated.

§1301.54. Procedure for Acceptance of Donations.

(a)

Donations of a value of $500 or more shall be accepted by a majority vote of the Council in an open meeting.

(b)

The minutes of the meeting shall reflect the name of the donor, a description of the donation, and the purpose of the donation.

(c)

The Council will issue a certificate of acceptance to the donor stating the date accepted, a description of the donation and the purpose of the donation.

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 1, 1999.

TRD-9900618

Jim Loyd

Executive Director

Texas Health Care Information Council

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 424-6490


Subchapter E. Technical Advisory Committees

25 TAC §§1301.61-1301.69

The Texas Health Care Information Council (Council) proposes to adopt new §§1301.61-1301.69, relating to the Council's technical advisory committees (TACs). The Council is authorized by §108.003(g) of the Texas Health and Safety Code to appoint technical advisory committees. House Bill 1048, Acts 1995, 74th Legislature Chapter 726, §1, authorized the appointment of four specific technical advisory committees and set out the composition of the members of these committees. Senate Bill 802, Acts 1997, 75th Legislature Chapter 261, §3, authorized an additional technical advisory committee and its composition. The proposed sections implement §§2110.005 and 2110.008 of the Government Code which require state agencies to adopt rules governing their advisory committees, including rules on a committee's purpose, tasks and the manner in which it will report to the agency, and establishing the date on which a committee will automatically be abolished unless the governing body of the agency votes to continue the committee in existence.

The proposed sections govern the current Quality Methods and Consumer Education TAC, the Peer Review and Provider Quality TAC, the Reimbursement of Medical Education and Research Costs TAC, the Health Maintenance Organizations TAC, which the Council initially appointed in 1996, and the Health Information Systems TAC, appointed in 1997. Proposed §§1301.61-1301.65 establish the five advisory committees and set forth their purposes and duties, their duration, the appointment process, membership, attendance requirements, and officers' selection and duties, and meeting procedures. Proposed §1301.66 authorizes the TACs to establish subcommittees and sets out administrative requirements for them. Proposed §§1301.67-1301.69 set out restrictions on reimbursing members for committee expenses, reporting requirements for TACs and the manner in which the TACs are evaluated and their costs and benefits are reported to the legislative budget board.

Jim Loyd, Executive Director, has determined that for the first five-year period the proposed sections are in effect there will be no foreseeable fiscal implications relating to costs or revenues of the state or local governments as a result of enforcing or administering the new sections. The Council is the agency responsible for administration and enforcement of the proposed sections and their adoption will require no additional staffing or agency resources to administer or enforce.

Mr. Loyd has also determined that for each year of the first five years the sections, as proposed, will be in effect, the public benefit anticipated as a result of enforcing the proposed sections will be the opportunity for better understanding of the purposes and tasks of the TAC's and the manner the TAC's report to the Council. Additionally, for the same period of time, Mr. Loyd has determined that there should be no additional economic cost to persons required to comply with the sections as proposed. There is no additional effect on small business separate from other persons who are required to comply with the sections as proposed.

Comments on the proposed new sections may be submitted to Jim Loyd, Executive Director, Texas Health Care Information Council, Brown-Heatly Building, 4900 North Lamar OOL-3407, Austin, Texas 78751-2399 no later than 30 days from the date that these proposed rules are published in the Texas Register .

The new sections are proposed under the Health and Safety Code, §108.003(g) which the Council interprets as authorizing it to appoint technical advisory committees, §108.006(a)(3) which the Council interprets as authorizing it to adopt rules to implement its powers and duties under chapter 108, including its use of technical advisory committees, and §§2110.005 and 2110.008 of the Government Code which the Council interprets as requiring state agencies to adopt rules governing its advisory committees and to comply with specific requirements set forth in these statutes.

Health and Safety Code, §108.003(g) and §108.006(a)(3) and Government Code, §2110.005 and §2110.008 are affected by this proposal.

§1301.61. Definitions.

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

(1)

Council - The Texas Health Care Information Council.

(2)

Technical Advisory Committee or TAC - A committee appointed by the Council for the purpose of consultation and providing advice and recommendations to the Council, as provided in the Health and Safety Code, §108.003(g)(3).

§1301.62. Technical Advisory Committees (TACs).

(a)

The Council establishes the following technical advisory committees listed in paragraphs (1)-(5) of this subsection for the purpose and task of providing advice and recommendations on rules and other Council action as determined by the Council and which are related to the subject matter areas identified in this section for each TAC:

(1)

Quality Methods and Consumer Education TAC, consisting of 14 members:

(A)

the development and implementation of the methodology and the interpretation of data relating to provider quality as provided in §108.010 of the Health and Safety Code; and

(B)

the development and dissemination of consumer education information and materials;

(2)

Peer Review and Provider Quality TAC, consisting of 11 members:

(A)

the use of peer review in the determination of quality patient care;

(B)

the development and interpretation of data elements necessary to the determination of quality patient care; and

(C)

the development and format of reports and information relating to provider quality;

(3)

Reimbursement of Medical Education and Research Costs TAC, consisting of 8 members:

(A)

issues pertaining to the reimbursement of medical education; and

(B)

issues pertaining to the reimbursement of research costs;

(4)

Health Maintenance Organizations TAC, consisting of 8 members:

(A)

development of data collection requirements for health benefit plans to assist the Council in complying with §108.009(o) of the Health and Safety Code; and

(B)

development of methods, standards and formats for the public reporting of data pertaining to health maintenance organizations;

(5)

Health Information Systems TAC, consisting of 7 members:

(A)

development of methods for data collection and warehousing; and

(B)

development of methods for linking existing and future databases.

(b)

Each TAC is abolished on August 31, 2003 unless the Council amends this subsection to establish a different date.

§1301.63. Membership.

(a)

The Council, at its discretion, shall appoint persons to a technical advisory committee (TAC).

(b)

A person interested in membership on a TAC must submit an application, on a form prescribed by the Council, to the executive director of the Council.

(c)

The Council's appointments committee shall review all applications and make recommendations to the Council. When making its recommendations, the appointments committee shall consider the qualification criteria in the Health and Safety Code, §108.003(g) for each TAC and the restrictions on composition of committee members in the Government Code, §2110.002.

(d)

Members shall be appointed for three year terms, except beginning September 1, 1998, the terms of one third of the members of a TAC shall be for three years, another one third for two years, and the remaining members, for one year. The appointments committee shall assign the initial term of each existing member or vacant position on a TAC so as to provide for a staggered system of terms.

(e)

The Council may remove a member from a TAC if a member is absent from at least three consecutive TAC meetings, or from more than half of the committee meetings during a calendar year.

(f)

The validity of an action of a TAC is not affected by the fact that it is taken when grounds for removal of a member exists.

(g)

If a vacancy on a TAC occurs, the Council shall appoint an individual to serve the unexpired portion of that term.

(h)

If a member is unable to attend a scheduled meeting, he or she shall notify the chair or appropriate Council staff.

(i)

The chair of a TAC may recommend the removal of a member for non-attendance to the Council's appointments committee which shall review the matter and make a recommendation to the Council.

§1301.64. Officers.

(a)

Each technical advisory committee (TAC) shall elect a chair and a vice-chair at its first meeting after August 31 of each year.

(b)

Each officer shall serve for one year until the next regular election of officers.

(c)

The chair shall preside at all meetings at which he or she is in attendance, call meetings in accordance with §1301.65 of this title (relating to Meetings), appoint subcommittees of the committee as necessary, and report to the Council. The chair may appoint a member to preside over a meeting in his or her absence if the vice-chair is not in attendance. The chair may serve on a subcommittee.

(d)

The vice-chair shall perform the duties of the chair in the absence of the chair.

(e)

A vacancy in the office of chair or vice-chair shall be filled at the next TAC meeting.

§1301.65. Meetings.

(a)

A technical advisory committee (TAC) shall meet as necessary to conduct business.

(b)

A TAC meeting may be called by the TAC chair, upon his or her own initiative or the request of at least three members of the TAC, or by the executive director in consultation with the TAC chair.

(c)

A simple majority of the members of a TAC shall constitute a quorum for the purpose of transacting business. All TAC action must be approved by a majority vote of a quorum of the members. Each member shall have one vote and may not vote by proxy.

(d)

Meetings of a TAC shall be posted and conducted in accordance with the Texas Open Meetings Act, Government Code, Chapter 551.

(e)

Council staff shall provide administrative support for a TAC, including making all meeting arrangements. Staff shall contact TAC members to determine availability for a meeting date and place. Each TAC member shall be informed of a meeting by mail, fax, or telephone at least five days prior to the meeting.

(f)

The agenda for each meeting may include an item entitled "public comment" under which any person will be allowed to address the TAC on matters relating to the TAC's business. The chair may establish procedures for public comment, including a time limit on each speaker.

(g)

A TAC shall make decisions in the discharge of its duties without discrimination based on any person's race, creed, gender, religion, national origin, age, physical condition, or economic status.

(h)

Minutes of all TAC committee meetings shall be kept by Council staff and shall include the names of members in attendance and a record of all formal actions and votes taken. A draft of the minutes approved by the TAC chair shall be provided to the Council and each member of the TAC within 30 days following each meeting. A final draft of the minutes shall be approved at the next meeting of the TAC, and upon approval, signed by the TAC chair.

§1301.66. Technical Advisory Committee (TAC) Subcommittees.

(a)

The chair of a TAC may establish subcommittees as necessary to assist the TAC in carrying out its duties. The chair shall appoint members of the TAC to serve on subcommittees and to act as subcommittee chairs.

(b)

Subcommittees shall meet at the call of the subcommittee chair or the TAC chair, but no more than necessary to conduct subcommittee business.

(c)

A subcommittee chair may recommend to the TAC chair the removal of a member from the subcommittee for non-attendance.

(d)

A subcommittee chair shall make regular reports to the TAC at each regular meeting of the TAC or by interim written reports on an as needed basis. A report shall include an executive summary or minutes of each subcommittee meeting. The executive summary or minutes shall include the names of members in attendance and a record of all formal actions and votes taken.

§1301.67. Reimbursement of Expenses.

In accordance with the Texas Health and Safety Code, §108.003(i), a member of a technical advisory committee (TAC) or subcommittee may not receive compensation or reimbursement of any expense incurred while serving on a TAC or TAC subcommittee.

§1301.68. Reports to the Council.

(a)

All technical advisory committees (TACs) shall report on its activities and present their recommendations at a regularly scheduled Council meeting.

(b)

The TAC chair, or at his or her request, the vice-chair or another member of the TAC shall present the report. If this is not possible, the TAC chair may request that a member of Council staff present the report.

(c)

All TACs shall file with the Council an annual written report approved by the TAC and signed by the TAC chair, by August 31st of each year or an earlier date upon request of the executive director. The report shall cover the previous fiscal year, unless the executive director specifies other time parameters. It shall include a list of the meeting dates of the TAC and its subcommittees, those members in attendance at each meeting, a brief description of the tasks assigned to it by the Council, formal action taken by the TAC on each task or any other matter, the status of any rules which have been reviewed by the TAC, anticipated activities of the TAC for the next year, and any recommended amendments to this subchapter.

§1301.69. Evaluation of Technical Advisory Committee (TAC) Costs and Benefits.

(a)

By September 30th of each year, Council staff, in consultation with each TAC chair, shall evaluate for the current fiscal year and report to the Council, for each TAC, on:

(1)

the committee's work;

(2)

the committee's usefulness; and

(3)

the costs related to the committee's existence, including the cost of Council staff time spent in support of the committee's activities.

(b)

As required by state law, the Council shall biennially report to the legislative budget board the information developed under subsection (a) of this section in evaluating each committee's costs and benefits.

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 1, 1999.

TRD-9900619

Jim Loyd

Executive Director

Texas Health Care Information Council

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 424-6490