TITLE 1.ADMINISTRATION

Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 371. MEDICAID FRAUD AND ABUSE PROGRAM INTEGRITY

Subchapter C. UTILIZATION REVIEW

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Health and Human Services Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

1 TAC §371.208

The Health and Human Services Commission (HHSC) proposes the repeal of §371.208, relating to Appeals Requirements under the Texas Medical Review Program (TMRP) and Tax Equity and Fiscal Responsibility Act (TEFRA) and Hospital Notification. This rule was originally promulgated by the Texas Department of Health (TDH) as 25 T.A.C. §41.110 and became a rule of HHSC in 1997, with the passage of Senate Bill 30, 75th Legislature, 1997. This bill transferred responsibility for conducting utilization review of certain Medicaid services from TDH and the Texas Department of Human Services (TDHS) to HHSC and redesignated all rules of TDH and TDHS governing this function as HHSC rules. Although the performance of utilization review activities transferred to HHSC, the conduct of appeals of utilization review decisions remained with TDH and TDHS.

The Social Security Act, §1902a(30) (codified at 42 U.S.C. §1396a(a)(30)) requires HHSC to implement methods and procedures to safeguard against unnecessary care and services, and to assure that the payments made for services are consistent with efficiency, economy and quality of care in the Medicaid program. Federal regulations found at 42 C.F.R. Part 456, Subpart C, set forth the utilization control requirements for states participating in the Medicaid program. TDH adopted rules to govern the conduct of utilization review for inpatient hospitals submitting claims to the Texas Medicaid program. With the transfer of this function to HHSC via Senate Bill 30, the rules governing this function were redesignated rules of HHSC. HHSC has determined that responsibility for the review of utilization review decisions by HHSC should be conducted in accordance with provisions of the current Texas Medicaid Provider Procedures Manual, as updated by the Texas Medicaid Bulletin, which is incorporated by reference into each Medicaid provider agreement.

Don Green, Chief Financial Officer, has determined that there will be a cost savings to the state for each year of the first five years following the repeal of the rule. The cost to the state of providing each informal hearing is approximately five hundred dollars ($500.00). The number of informal provider hearings varies from year to year from approximately 60 to over 200. This would result in a cost savings to the state from $30,000 to $100,000 per year for each year following the repeal of the rule. There are no foreseeable fiscal implications on local government.

Mr. Green has also determined that for each year of the five years the repeal is in effect, the public benefits anticipated as a result of repeal of the rule are administrative simplification, increased efficiencies in the use of state resources resulting in savings of tax dollars, and a more expedient resolution of utilization review appeals. There will be no effect on small businesses or micro-businesses, because they are not required to comply with the rule. There is no anticipated economic costs to persons who are no longer required to comply with the rule. There is no impact on local employment.

Comments on the proposed repeal of the rule may be submitted to Steve Aragon, General Counsel, Health and Human Services Commission, 4900 N. Lamar, Fourth Floor, Austin, Texas 78756, (512) 424-6578. Comments will be accepted for 30 days following the publication in the Texas Register .

The repeal is proposed under the Human Resources Code, §32.021, and the Government Code, §531.021 and §531.033, which provide the Health and Human Services Commission with the authority to administer federal medical assistance funds and the state's medical assistance program and authorize HHSC to adopt rules necessary to carry out its statutory duties.

The repeal affects Government Code, §531.021 and §531.033, which provide the Health and Human Services Commission with the authority to administer federal medical assistance funds and the state's medical assistance program and authorize HHSC to adopt rules necessary to carry out its statutory duties.

§371.208.Appeals Requirements under the Texas Medical Review Program (TMRP) and Fiscal Responsibility Act (TEFRA) and Hospital Notification.

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 7, 2000.

TRD-200000942

Marina S. Henderson

Executive Deputy Commissioner

Texas Health and Human Services Commission

Earliest possible date of adoption: March 19, 2000

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