TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 19. NURSING FACILITY REQUIREMENTS FOR LICENSURE AND MEDICAID CERTIFICATION

The Texas Department of Human Services (DHS) proposes to amend §19.1303, concerning specialized services in Medicaid-certified facilities; §19.1304, concerning rehabilitative services system in Medicaid-certified facilities; §19.1402, concerning Medicaid- certified nursing facility emergency dental services system; and §19.2609, concerning payment of claims; and new §19.1306, concerning payment for specialized and rehabilitative services, in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter. The purpose of the amendments and new section is to require that claims be submitted within 12 months of the last day of service and to reflect current practice regarding payment of claims in Specialized Services, Rehabilitative Services, and the Emergency Dental Program. New §19.1306 consolidates payment information previously contained in §19.1303 and §19.1304.

James R. Hine, Commissioner, has determined that for the first five-year period the proposed sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Hine also has determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of adoption of the proposed sections will be that DHS will comply with federal mandates. The proposed policy is a federal requirement for Medicaid programs found at 42 Code of Federal Regulations 447.45(d). There will be no effect on small or micro businesses as a result of enforcing or administering the sections, because current rules have a 180-day deadline for submission of claims. The proposal also allows exemptions for late claims, if the late submission is through no fault of the provider. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There is no anticipated effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Susan Syler at (512) 438- 3111 in DHS's Long Term Care-Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-194, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

Subchapter N. REHABILITATIVE SERVICES

40 TAC §§19.1303, 19.1304, 19.1306

The amendments and new section are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendments and new section implement the Human Resources Code, §§22.001- 22.036 and §§32.001-32.052.

§19.1303.Specialized Services in Medicaid-certified Facilities.

Specialized Services are physical, occupational, and speech therapy evaluations and services provided to eligible Medicaid recipients identified by the Preadmission Screening and Resident Review (PASARR) team.

[ (a) Specialized services, identified by the Preadmission Screening and Annual Resident Review (PASARR) team, include physical, occupational, and speech and/or language pathology evaluations, and consultation that are preauthorized, coordinated, and paid through the Texas Department of Human Services' (DHS's) Rehabilitative Services System. Services provided for residents determined by PASARR to need them under this system are for the purposes of maintaining the resident's level of functioning and preventing, to the extent possible, further deterioration. There is no expectation that the residents' level of functioning will improve measurably within 30 days. These specialized services are not eligible for reimbursement under the Texas Index for Level of Effort (TILE) 202. (See §19.2500 of this title (relating to Preadmission Screening and Annual Resident Review (PASARR)). Eligibility for specialized services is determined by DHS without regard to other financial resources.]

[ (b) DHS pays the lowest of the following rates:]

[ (1) the maximum allowable Medicaid rate per visit as determined by the Texas Board of Human Services;]

[ (2) the therapy provider's interim rate per visit as determined by Medicare; or]

[ (3) the provider's customary charge per visit.]

§19.1304.Rehabilitative Services [ System ] in Medicaid-certified Facilities.

[ (a) If a facility admits or retains residents who require physician-prescribed rehabilitative services, the facility must either furnish therapy as a certified Title XVIII provider of services or must have written agreements with Title XVIII providers of rehabilitative services. The facility must ensure that these agreements provide a basis for effective working arrangements under which therapy is made available to residents if needed and ordered by the attending physician.]

(a) [ (b) The ] Rehabilitative Services [ System ] are [ includes ] physical therapy, occupational therapy, and speech therapy [ pathology ] services for Medicaid nursing facility residents who are not eligible for Medicare or other insurance. The cost of therapy services for residents with Medicare or other insurance coverage or both must be billed to Medicare or other insurance or both . [ The attending physician must order these services in order for provider reimbursement to occur. ]

[ (c) Prior authorization by the Texas Department of Human Services (DHS) is required for residents with only Medicaid coverage.]

[ (1) Requests for appeal of prior authorization or recertification denials for qualified Medicaid recipients must be made in writing by the administrator of the contracting Title XIX nursing facility.]

[ (2) The request for appeal specified in paragraph (1) of this subsection must be received by the 35th day from the date of the original denial determination.]

[ (d) DHS pays nursing facilities for physical, occupational, and speech therapy services provided to residents who are eligible for Medicaid but are not eligible for Medicare. The cost of therapy services for residents with Medicare coverage must be billed to Medicare. DHS also pays Title XVIII-certified physical therapists for physical therapy services provided to eligible residents. DHS pays whichever of the following rates is lowest:]

[ (1) the maximum allowable Medicaid rate per visit as determined by the Texas Board of Human Services;]

[ (2) the therapy provider's interim rate per visit as determined by Medicare; or]

[ (3) the provider's customary charge per visit.]

[ (e) A visit is defined as one physical therapy service, one occupational therapy service, or one speech therapy service performed for one resident. An evaluation is paid at the same rate as one unit of service. One evaluation is paid for an illness or injury at the unit rate without prior authorization; any additional evaluations performed on the recipient must be supported by the attending physician's documentation indicating a new illness or injury or a substantive change in a pre-existing condition.]

[ (f) Claims for services provided must be received by DHS by the 95th day from the last approved treatment day the rehabilitation services were provided.]

[ (1) Rejected or adjusted claims may be resubmitted. These claims must be received by the 180th day from the date of the rejection notification.]

[ (2) Corrected claims must be received by the 180th day from the date of the paid claim.]

(b) [ (g) ] Coverage for physical therapy, occupational therapy , or speech therapy [ pathology ] services includes evaluation and treatment of functions that have been impaired by illness. Rehabilitative services must be provided with the expectation that the resident's functioning will improve measurably in 30 days.

§19.1306.Payment for Specialized and Rehabilitative Services.

(a) The Texas Department of Human Services (DHS) reimburses nursing facilities and Title XVIII-certified providers for Specialized and Rehabilitative Services.

(b) The services must:

(1) be ordered by the attending physician; and

(2) have prior authorization by DHS.

(c) DHS reimburses:

(1) nursing facilities the maximum allowable Medicaid rate per visit as determined by the Health and Human Services Commission (HHSC);

(2) therapy providers the interim rate per visit as determined by Medicare.

(d) A visit is defined as one physical, occupational, or speech therapy service performed for one resident. An evaluation is paid at the same rate as one visit.

(1) One evaluation is paid without prior authorization.

(2) Any additional evaluations must be supported by the attending physician's documentation that indicates a new illness, injury, or a substantive change in a pre-existing condition.

(e) Complete and accurate claims for services must be received by DHS within 12 months from the last approved treatment day the services were provided.

(f) Claims for services delivered before the effective date of this section must be submitted within 12 months of the effective date of this section.

(g) Adjustments to claims must be received by DHS's claim processor during the applicable 12- month period. Claims and adjustments denied during the 12-month period through no fault of the provider may be paid upon approval by DHS.

(h) Requests for appeals of denials of prior authorizations or re-certifications must be made in writing by the nursing facility administrator to Rehabilitative/Specialized Services, Texas Department of Human Services, P.O. Box 149030 (W-519), Austin, Texas 78714-9030. The request for appeal must be received by the 30th day from the date of the original denial determination.

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

Filed with the Office of the Secretary of State on June 10, 2002.

TRD-200203617

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: July 21, 2002

For further information, please call: (512) 438-3734


Subchapter O. DENTAL SERVICES

40 TAC §19.1402

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.036 and §§32.001-32.052.

§19.1402.[ The ] Medicaid-certified Nursing Facility Emergency Dental Services [ System ].

(a) Emergency dental services. The Texas Department of Human Services (DHS) will reimburse nursing facilities the cost of emergency dental services provided to eligible Medicaid residents residing in Medicaid-contracted [ Medicaid contracted ] facilities or distinct parts.

(1) (No change.)

(2) Dental care for recipients under the age of 21 is [ are ] covered under the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program. [ This program pays for authorized and allowable services listed in the EPSDT section of the Medicaid Provider Procedures Manual, which is available through the National Heritage Insurance Company (NHIC). ]

(3)-(4) (No change.)

(b) (No change.)

(c) Reimbursement for Emergency Dental Services. The cost of emergency dental services provided to eligible Medicaid residents residing in nursing facilities will be reimbursed to facilities [ on a voucher system ], provided that the services are not reimbursable by the National Heritage Insurance Company ( NHIC ) or the EPSDT program. [ The following items must be submitted to DHS, Emergency Dental Service System, Mail Code W- 519, P. O. Box 149030, Austin, Texas 78714-9030: ]

[ (1) a State of Texas Purchase Voucher completed and signed by the administrator, which includes the name of the facility, the resident's name, and the procedures performed, and False Claim Statement: "I understand that payment and satisfaction of this claim will be from federal and state funds, and that any false claims, statements or documents, or concealment of a material fact may be prosecuted under applicable federal or state laws";]

[ (2) a copy of the dentist's treatment notes in which the nature of the emergency is clearly documented; and]

[ (3) an itemized bill (statement) to the facility signed by the treating dentist which includes a statement regarding whether or not the services were also billed to NHIC. American Dental Association procedure codes must be used for billing.]

[ (d) Maximum Payment.]

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

[ (A) Usual fee--The fee a provider usually charges private-pay residents for a service.]

[ (B) Maximum fee--The highest fee that DHS pays, through NHIC, for an allowable procedure. Upon request, DHS will furnish in writing, the maximum fee schedule.]

[ (C) Adjusted fee--The fee derived when the dental consultant may recommend adjusting the charge for a dental procedure that has a payment limitation as specified in the chart of allowable services, procedure codes, and limitations included in the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) dental services section of NHIC's Provider Procedures Manual. The dental consultants may adjust payment for a specific dental procedure below the maximum fee for the procedure when DHS has partially paid for the service on the same tooth or when the degree of difficulty, as determined by a review of the x-rays or itemized laboratory statement, does not justify the maximum fee.]

[ (2) Payments for emergency dental services rendered in the Nursing Facility Emergency Dental Service System are the lowest of:]

[ (A) the provider's usual fee;]

[ (B) the maximum fee as determined by DHS; or]

[ (C) the adjusted authorized fee.]

[ (3) Maximum fees are those set by DHS. Fees will change when reset by DHS.]

(d) [ (e) ] Payment of Claims.

(1) The facility must accept payment by DHS as payment in full for services . [ , and neither ] Neither the dentist nor the facility may charge an additional fee to the recipient, his family, or his trust fund , except that the dentist may charge the recipient for services that: [ . ]

(A) the recipient requests, and

(B) are not reimbursable by the Texas Medical Assistance Program.

(2) Payments for emergency dental services are the lower of the:

(A) dentist's usual fee; or

(B) maximum fee as determined by the Health and Human Services Commission (HHSC).

(3) [ (2) ] DHS reimburses facilities for services properly rendered in accordance with applicable laws, regulations, and operational instructions. DHS may withhold or suspend payment for services that are not properly rendered.

(4) [ (3) The ] Nursing Facility Emergency Dental Services [ system ] makes no payment for services that are available under any other Texas Medical Assistance Program.

[ (4) The provider may charge the recipient only for services that the recipient requests and that are not reimbursable by the Texas Medical Assistance Program.]

[ (5) The Nursing Facility Emergency Dental Services system will not reimburse for missed appointments.]

(5) [ (6) ] Complete and accurate claims [ Claims ] for services must be received within 12 months [ by the 95th day ] from the date of service.

[ (A) Rejected or adjusted claims may be resubmitted. These claims must be received by the 180th day from the date of the claim rejection.]

[ (B) Corrected claims must be received by the 180th day from the date of the paid claim].

(6) Claims for services delivered before the effective date of this section must be submitted within 12 months of the effective date of this section.

(7) Adjustments to claims must be received by DHS's claim processor during the applicable 12-month period. Claims and adjustments denied during the 12-month period through no fault of the dentist may be paid upon approval by DHS.

[ (f) Utilization Review. Utilization review activities required by the Medicaid program are accomplished through a series of monitoring systems developed to ensure that services are appropriate to need and in the optimum quality and quantity. Both residents and providers are subject to utilization review monitoring. The resident's clinical record documentation by facility staff must support the dentist's assessment and treatment. The monitoring focuses on the appropriate screening activities, the necessity of all services and the quality of care as reflected by the choice of services provided, type of provider involved, and setting in which care was delivered.]

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

Filed with the Office of the Secretary of State on June 10, 2002.

TRD-200203618

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: July 21, 2002

For further information, please call: (512) 438-3734


Subchapter AA. VENDOR PAYMENT

40 TAC §19.2609

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.036 and §§32.001-32.052.

§19.2609.Payment of Claims.

In order to receive payment for services provided, the nursing facility's complete and accurate [ initial monthly ] claim for services for which the nursing facility is entitled to payment must be received by the Texas Department of Human Services' (DHS's) claim processor within 12 months [ 180 days ] after the date of service [ end of the service month ]. For purposes of this section, date of service is defined as the last day of the month in which the service was provided. Claims for services delivered before the effective date of this section must be submitted within 12 months of the effective date of this section.

(1) (No change.)

(2) Adjustments to claims must be received by DHS's claims processor during the applicable 12-month period. Claims and adjustments denied during the 12-month period through no fault of the nursing facility [ Claims and adjustments received after the 180- day time period ] may be paid upon approval by DHS. [ An excessive number of late claims or adjustments may subject the service provider's claims procedures to audit by DHS. ]

(3) In the event that Medicaid eligibility for benefits is established after provision of services, the 12-month [ 180-day ] period for submission of claims will start on the date eligibility is established.

(4) (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 June 10, 2002.

TRD-200203619

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: July 21, 2002

For further information, please call: (512) 438-3734


Chapter 30. MEDICAID HOSPICE PROGRAM

Subchapter F. REIMBURSEMENT

40 TAC §30.62

The Texas Department of Human Services (DHS) proposes to amend §30.62, concerning Medicaid hospice claims processing requirements, in its Medicaid Hospice Program chapter. The purpose of the amendment is to require that claims be submitted within 12 months of the last day of service. The amendment also reflects current practice.

James R. Hine, Commissioner, has determined that for the first five-year period the proposed section will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Hine also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of adoption of the proposed section will be that DHS will comply with federal mandates. The proposed policy is a federal requirement for Medicaid programs found at 42 Code of Federal Regulations 447.45(d). There will be no effect on small or micro businesses as a result of enforcing or administering the section, because the new section is not retroactive. Providers will have a full year to submit current as well as future claims. The proposal also allows for exemptions for late claims, if the late submission is through no fault of the provider. There is no anticipated economic cost to persons who are required to comply with the proposed section. There is no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Susan Syler at (512) 438- 3111 in DHS's Long Term Care-Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-194, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.036 and §§32.001-32.052.

§30.62.Medicaid Hospice Claims Processing Requirements.

(a) Requirement for payment.

(1) To receive Medicaid hospice payments, an entity must be licensed as a hospice, Medicare certified by the Centers for Medicare and Medicaid Services (CMS) [ Health Care Financing Administration (HCFA) ] as a hospice, and Medicaid certified by the Texas Department of Human Services (DHS).

(2) A hospice that seeks payment for Medicaid hospice services must submit a complete and accurate claim for which the hospice is entitled to payment to DHS's claims processor within 12 months after the date of service. For purposes of this section, date of service is defined as the last day of the month in which the service was provided.

(A) If Medicaid eligibility for benefits is established after provision of services, the 12-month period for submission of claims starts on the date eligibility is established.

(B) Medicaid hospice payments are subject to availability of state and federally appropriated funds.

(C) Claims for services delivered before the effective date of this section must be submitted within 12 months of the effective date of this section.

(D) Adjustment to claims must be received by DHS's claim processor during the applicable 12-month period. Claims and adjustments denied during the 12-month period through no fault of the hospice may be paid upon approval by DHS.

(b)-(c) (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 June 10, 2002.

TRD-200203620

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: July 21, 2002

For further information, please call: (512) 438-3734


Chapter 49. CONTRACTING FOR COMMUNITY CARE SERVICES

40 TAC §49.9

The Texas Department of Human Services (DHS) proposes to amend §49.9, concerning billings and claims payment, in its Contracting for Community Care Services chapter. The purpose of the amendment is to require that claims be submitted within 12 months of the last day of service. The proposal also updates the rule to reflect current practice.

James R. Hine, Commissioner, has determined that for the first five-year period the proposed section will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Hine also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of adoption of the proposed section will be that DHS will comply with federal mandates. The proposed policy is a federal requirement for Medicaid programs found at 42 Code of Federal Regulations 447.45(d). There will be no effect on small or micro businesses as a result of enforcing or administering the section, because current rules have a 180-day deadline for submission of claims. The proposal also allows for exemptions for late claims, if the late submission is through no fault of the provider. There is no anticipated economic cost to persons who are required to comply with the proposed section. There is no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Susan Syler at (512) 438- 3111 in DHS's Long Term Care-Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-194, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.036 and §§32.001-32.052.

§49.9.Billings and Claims Payment.

(a)-(b) (No change.)

(c) A provider agency is entitled to payment if:

(1)-(11) (No change.)

(12) a complete and accurate claim for services for which the provider is entitled to payment is received by DHS's claim processor within 12 months after the date of service. For purposes of this section, date of service is defined as the last day of the month in which the service was provided. Claims for services delivered before the effective date of this section must be submitted within 12 months of the effective date of this section. [ the initial monthly claim for services is received by DHS's claim processor within 180 days after the end of the service month. The following provisions apply: ]

(A) (No change.)

[ (B) Claims and adjustments received after the 180-day time period may be paid upon approval by DHS. An excessive number of late claims or adjustments may subject the service provider's claims procedures to audit by DHS.]

(B) [ (C) ] In the event that Medicaid eligibility for benefits is established after provision of services, the 12-month [ 180-day ] period for submission of claims will start on the date eligibility is established;

(C) Adjustments to claims must be received by DHS's claims processor during the applicable 12-month period. Claims and adjustments denied during the 12-month period through no fault of the provider may be paid upon approval by DHS.

(13)-(14) (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 June 10, 2002.

TRD-200203621

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: July 21, 2002

For further information, please call: (512) 438-3734