TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 15. MEDICAID ELIGIBILITY

The Texas Department of Human Services (DHS) proposes to amend §15.442 and §15.503, concerning resources and budgets and payment plans, in its Medicaid Eligibility chapter. The purpose of the amendments is to ensure compliance with federal law concerning the treatment of annuities, and to implement an option available under federal law that requires an institutionalized spouse to divert income to a community spouse before the institutionalized spouse may request that the protection of the couple's resources be expanded.

The proposed amendment to §15.442 clarifies that an annuity purchased by a person is a countable resource for Medicaid eligibility purposes unless the annuity meets certain criteria, and removes the current requirement that an annuity purchase be considered a transfer of assets if the annuity does not name the state of Texas, DHS, or its successor agency as residuary beneficiary. The amendment is in accord with recent interpretive guidance provided by the federal Centers for Medicare and Medicaid Services (CMS). CMS has recently informed states that the federal regulation at 20 Code of Federal Regulations (CFR) §416.1201 requires an annuity to be counted as a resource if it can be sold. CMS has also clarified that the purchase of an annuity is not necessarily a transfer of assets for which a penalty period of Medicaid ineligibility may be imposed merely because the annuity does not name the state as residuary beneficiary. The amendment to §15.442(g) would also implement an option available to the state under §1902(r)(2) of the Social Security Act (42 U.S.C. §1396a(r)(2)) to be less restrictive in the counting of annuities than that which is otherwise required by 20 CFR 416.1201. Under this option, DHS would not count as a resource an annuity that meets the criteria described in the proposal at §15.442(g)(1).

The proposed amendment to §15.503 relates to the procedure described in §1924(d) of the Social Security Act (42 U.S.C. §1396r-5) for increasing the amount of a married couple's resources that are not counted in determining the institutionalized spouse's eligibility for Medicaid, in order to protect income for the spouse who is remaining in the community (the community spouse). The amendment requires that an institutionalized spouse who applies for Medicaid must first divert income to his or her community spouse (who is not applying for Medicaid), before the institutionalized spouse may request expansion of the amount of the couple's resources that would be protected from consideration in evaluating the institutionalized spouse's Medicaid eligibility. This has been referred to as the "income first" method for determining the extent of protection of the couple's assets. The United States Supreme Court has found this method to be permissible under federal law in the case of Wisconsin Dept. of Health and Family Svcs. v. Blumer , 534 U.S. 473 (2002). DHS proposes to implement this change as a Medicaid cost savings measure, and to help ensure that limited Medicaid dollars are more likely to be available to those truly in need of the assistance. The amendment also clarifies the established methodology DHS follows to calculate the amount of a couple's resources that is subject to protection.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed sections are in effect, there are fiscal implications for state government as a result of enforcing or administering the sections. The effect on state government for the first five-year period is an estimated reduction in cost. However, DHS lacks sufficient data to accurately estimate the cost savings. DHS has not found that there would be any fiscal implications for local government as a result of enforcing or administering the sections.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing the sections is increased clarity in the Medicaid eligibility requirements for annuitants, and the preservation of limited Medicaid dollars for those truly in need of the assistance. There is no adverse economic effect on small or micro businesses as a result of enforcing or administering the sections, because the proposed amendments relate only to financial status requirements for individuals to become eligible to receive Medicaid benefits. 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 John Stockton at (512) 438- 3225 in DHS's Long Term Care-Policy section. Written comments on the proposal may be submitted to Supervisor, Rules Unit-141, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. The changes these rules make do not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

These Medicaid eligibility rules are proposed by DHS, subject to the subsequent transfer of rulemaking authority to HHSC. DHS is currently scheduled to transition sometime in 2004 into two successor agencies, the existing Texas Health and Human Services Commission (HHSC) and a new agency, the Texas Department of Aging and Disability Services (DADS).

This reorganization is mandated by House Bill 2292, 78th Leg., R.S. (2003). At the inception of operations of DADS, the authority to adopt all rules for the operation and provision of health and human services by DADS will lie with HHSC. In addition, the statutory reorganization mandates the transfer to HHSC of the policy, rulemaking, and operational authority, within an eligibility services division, for eligibility determinations for all health and human services programs. These changes may result in the migration of these rules from one title of the Texas Administrative Code to another or other changes.

Subchapter D. RESOURCES

40 TAC §15.442

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

The amendment affects the Human Resources Code, §§22.0001-22.040 and §§32.001-32.067.

§15.442.Personal Property.

(a) - (f) (No change.)

(g) Annuities. A person [ client ] may purchase a revocable or irrevocable [ an ] annuity to provide income (a nonemployment-related annuity), or may receive the benefits of an employment-related annuity that provides a return on prior services, as part of or in similar manner to a pension or retirement plan . [ An annuity can be revocable or irrevocable. ]

(1) An employment-related annuity is not a countable resource. A nonemployment-related [ revocable ] annuity is a countable resource unless the annuity: [ . An irrevocable annuity is a transfer of assets if it does not pay back the principal (original purchase price) to the client during his life expectancy. To qualify for exemption from transfer of assets rules, an annuity must be issued by an insurance company licensed and approved to do business in the state of Texas. The eligibility specialist must review the terms of an annuity contract or agreement to determine if the principal of the annuity is an available resource or considered a transfer of assets. ]

(A) is irrevocable;

(B) pays out principal in equal monthly installments and pays out interest in either equal monthly installments or in amounts that result in increases of the monthly installments at least annually;

(C) is guaranteed to return within the person's life expectancy at least the person's principal investment plus a reasonable amount of interest (based on prevailing market interest rates at the time of the annuity purchase, as determined by DHS);

(D) names the state of Texas, DHS, or DHS's successor agency as the residual beneficiary of amounts payable under the annuity contract, not to exceed any Medicaid funds expended on the person during his lifetime; and

(E) is issued by an insurance company licensed and approved to do business in the state of Texas.

(2) Income from an annuity that is not a countable resource under paragraph (1) of this subsection is treated in accordance with §15.455(d) of this chapter (relating to Unearned Income). An annuity that is a countable resource under paragraph (1) of this subsection and that does not meet the criterion described in paragraph (1)(C) of this subsection is also a transfer of assets. The date of the transfer of assets is the date of the annuity purchase or, if applicable, the date that the annuity contract was last amended in exchange for consideration. DHS determines the penalty period based on the amount payable under the annuity contract during that portion of the guarantee period of the annuity that is after the date the person is reasonably expected to die. [ To avoid a transfer of assets penalty, an annuity purchased by or for the client must: ]

[ (A) be irrevocable;]

[ (B) pay out principal and interest in equal monthly installments to the client in sufficient amounts that the principal is paid out during the life expectancy of the client; and]

[ (C) name the state of Texas, Texas Department of Human Services or its successor agency as the residual beneficiary of funds remaining in the annuity, not to exceed any Medicaid funds expended on the client during his lifetime.]

(3) A revocable annuity that is a countable resource under paragraph (1) of this subsection is valued according to the amount refundable upon revocation. A transfer of assets occurs if a person sells a revocable annuity for less than this amount. An irrevocable annuity that is a countable resource under paragraph (1) of this subsection is valued according to its fair market value. DHS presumes that the fair market value of such an annuity is 80% of its total remaining payout. A person may overcome this presumption by providing credible evidence to the contrary. If, however, the annuity contract by its terms is non-negotiable, the total remaining payout is a transfer of assets, as provided by §15.435(g)(3) of this chapter (relating to Liquid Resources). A transfer of assets also occurs if a person sells an irrevocable annuity for less than the purchase price (that is, the total principal invested) minus the amount of principal that has already been paid. [ The average number of years of expected life remaining for the client must equal or exceed the stated life of the annuity. If the client is not reasonably expected to live longer than the guarantee period of the annuity, the client will not receive fair market value for the annuity based on projected returns. In this case, the annuity is not actuarilly sound and a transfer of assets for less than fair market value of the premium has taken place to the extent of the portion not anticipated to be repaid in the client's lifetime. The penalty is assessed based on a transfer of assets that is considered to have occurred at the time the annuity was purchased, minus any principal paid to the client prior to the file date for Medicaid benefits. ]

(4) The requirement in paragraph (1)(D) of this subsection does not apply to an annuity purchased by or for a person who is a "community spouse," as described in §15.503 of this chapter (relating to Protection of Spousal Income and Resources). As provided by §15.430(d)(2)(A) of this chapter (relating to Transfer of Assets), the purchase of an annuity by the institutional spouse is not a transfer of assets on the basis that the community spouse is the annuitant.

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 18, 2004.

TRD-200404018

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Subchapter F. BUDGETS AND PAYMENT PLANS

40 TAC §15.503

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

The amendment affects the Human Resources Code, §§22.0001-22.040 and §§32.001-32.067.

§15.503.Protection of Spousal Income and Resources.

(a) - (i) (No change.)

(j) Formula for increased PRA at appeal.

(1) In nursing facility and waiver cases with a community spouse, the client (institutionalized spouse or waiver applicant/recipient) can make a request or file an appeal to increase the protected resource amount (PRA) to produce additional income for the community spouse. This option is available only after the client diverts all of his or her available income (that is, gross income minus allowable deductions) to the community spouse, and only if the community spouse's resulting total income is less than the minimum monthly maintenance needs allowance (MMMNA). The eligibility specialist or hearing officer may then increase the PRA to an amount that is [ a level ] adequate to produce income that equals [ up to ], but does not exceed, the MMMNA [ monthly maintenance needs allowance ].

(2) The couple can protect an amount of [ additional ] resources equal to the dollar amount that must be deposited in a one-year certificate of deposit (CD), at current interest rates, to produce interest income equal to the difference between the MMMNA [ monthly maintenance needs allowance ] (in effect at the time of the request or the filing of the appeal) and other countable income not generated by either spouse's countable resources. The couple is not required to invest in the CD as a condition of eligibility.

(3) To determine the amount of the increased PRA, the eligibility specialist or hearing officer determines the current interest rate of a one-year CD as published in the local newspaper [ paper ] or provided by a local bank [ that offers one-year CD's ]. The eligibility specialist or hearing officer then determines the amount of resources required to produce income, at the specified interest rate, that would increase the community spouse's income to the MMMNA [ monthly maintenance needs allowance ].

(4) The amount of resources to be protected is determined by using the methodology described [ formula specified ] in subparagraphs (A) -(E) [ through (D) ] of this paragraph. This methodology [ formula ] is to be used to determine the maximum amount of resources to be protected regardless of the actual income the couple's [ a ] resource may or may not be producing [ at the time of the original PRA or at the time of the appeal hearing ].

(A) Subtract from the amount of the MMMNA the community spouse's monthly [ non-resource-producing ] income from all sources other than resources of the couple (including any income that must first be diverted by the client as required by paragraph (1) of this subsection [ , if any) from the monthly maintenance needs allowance (MMNA ]). The result [ difference ] is the additional monthly income needed by the community spouse.

(B) Multiply by 12 the additional monthly income needed by the community spouse (from subparagraph (A) of this paragraph) [ by 12 ]. The product equals the annual income needed by the community spouse.

(C) Multiply by 100 the annual income needed by the community spouse (from subparagraph (B) of this paragraph) [ by 100 ].

(D) Divide the product from subparagraph (C) of this paragraph by the interest rate described in paragraph (3) of this subsection [ for a one-year CD ]. Do not use a percentage. The result is the expanded PRA, subject to subparagraph (E) of this paragraph.

(E) The expanded PRA may not exceed the value of the couple's combined countable resources as of the first month of entry by the client to a medical care facility for a continuous stay , or, if applicable, as of the first month of application by the client to a waiver program .

(5) When determining the post-eligibility applied income or co-payment of the client [ co-pay ] and the amount available for [ spousal ] diversion to the community spouse , DHS [ the caseworker ] uses the actual income from the resources if it is more than the amount of income that [ dollar amount being produced if the actual amount is in excess of the amount ] a one-year CD would produce. However, if the actual amount of income from the resources [ a resource produces ] is less than the amount of income that a one-year CD would produce, DHS [ the caseworker ] uses the amount of income that a one-year CD would produce.

(k) Spousal impoverishment provisions do not apply in the case of void or annulled marriages. Clients with void marriages or who have obtained a court annulment of their marriage are treated as though they were always individuals. In the instance of a divorce, spousal impoverishment provisions apply through the end of the calendar month of the court order granting the divorce [ in which the divorce is issued ].

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 18, 2004.

TRD-200404019

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Chapter 19. NURSING FACILITY REQUIREMENTS FOR LICENSURE AND MEDICAID CERTIFICATION

The Texas Department of Human Services (DHS) proposes to amend §19.405, concerning additional requirements for trust funds in Medicaid-certified facilities; §19.2302, concerning requirements for a contracted Medicaid facility; and §19.2312, concerning surety bonds or letters of credit, in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter.

The purpose of the amendment to §19.405 is to correct the references to the Code of Federal Regulations that require handling trust fund monthly benefits in Medicaid-certified facilities. The amendment to §19.2302 adds an applicable rule, 1 Texas Administrative Code (TAC) §371.212, Case Mix Classification System, as Medicaid-certified facilities must comply with the requirements of the Texas Health and Human Services Commission (HHSC) for utilization review. The amendment to §19.2312 makes it consistent with HHSC rules on the same subject and clarifies for facilities the types of reports they have to file before they can furnish a surety bond or a letter of credit upon a change of ownership or termination of a contract.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed sections are in effect, there are no fiscal implications for state or local government as a result of enforcing or administering the sections.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing the sections is to ensure the accuracy of information available to the public and enhance the public's ability to locate desired information referenced in the rules. The rules will clarify where facilities are to mail their cost reports and ensure consistency between DHS and HHSC rules as they relate to vendor hold and HHSC Rate Analysis nursing facility reporting requirements. There is no adverse economic effect on small or micro businesses as a result of enforcing or administering the sections, because the amendments impose no additional costs to the facilities and they are already subject to these requirements under HHSC rules. 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 Marcia Bowen at (512) 438- 2118 in DHS's Long-Term Care Regulatory Policy section. Written comments on the proposal may be submitted to Supervisor, Rules Unit-161, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. The changes these rules make do not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

These rules are proposed by DHS, subject to the subsequent transfer of rulemaking authority to the Texas Health and Human Services Commission (HHSC). DHS is currently scheduled to transition sometime in 2004 into two successor agencies, the existing HHSC and a new agency, the Texas Department of Aging and Disability Services (DADS).

This reorganization is mandated by House Bill 2292, 78th Legislature, Regular Session (2003).

At the inception of operations of DADS, the authority to adopt all rules for the operation and provision of health and human services by DADS will lie with HHSC. These changes may result in the migration of these rules from one title of the Texas Administrative Code to another or other changes.

Subchapter E. RESIDENT RIGHTS

40 TAC §19.405

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

The amendment affects the Human Resources Code, §§22.0001-22.040 and §§32.001-32.067.

§19.405.Additional Requirements for Trust Funds in Medicaid-certified Facilities.

(a) - (n) (No change.)

(o) Handling of monthly benefits. If the Social Security Administration has determined that a Title II and Title XVI Supplemental [ Supplementary ] Security Income (SSI) benefit to which the recipient is entitled should be paid through a representative payee, the provisions in 20 Code of Federal Regulations (CFR), §§404.2001-404.2065 [ §§404.1601- 404.1610 ], for Old Age, Survivors, and Disability Insurance benefits and 20 CFR, §§416.601-416.665 [ §§419.601-419.690 ], for SSI benefits apply.

(p) - (r) (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 18, 2004.

TRD-200404016

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Subchapter X. REQUIREMENTS FOR MEDICAID-CERTIFIED FACILITIES

40 TAC §19.2302, §19.2312

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

The amendments affect the Human Resources Code, §§22.0001-22.040 and §§32.001-32.067.

§19.2302.Requirements for a Contracted Medicaid Facility.

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

(c) Each NF must comply with the Texas Health and Human Services Commission's (HHSC's) utilization review requirements as provided in 1 TAC §371.212 (relating to Case Mix Classification System) [ the Texas Administrative Code (TAC), Title 1, Part 15, Chapter 371, Medicaid Fraud and Abuse Program Integrity ], §371.213 (relating to Utilization Review and Control Activities Performed by Texas Health and Human Services Commission (Commission)) , and §371.214 (relating to Texas Index for Level of Effort (TILE) Assessments).

(d)-(p) (No change.)

§19.2312.Surety Bonds or Letters of Credit.

(a) (No change.)

(b) At its sole option, the Texas Department of Human Services (DHS) may allow the prior owner to obtain a surety bond or an irrevocable letter of credit (collateral) and release the vendor payments on hold. Money owed DHS by the prior owner for any reason will be recovered through the surety bond or the letter of credit. Usually, the surety bond equals the average monthly vendor payments paid to the facility. Facilities terminating a contract for long-term care services may furnish a surety bond or letter of credit only if :

(1) all required long-term care facility cost reports have been filed with the Texas Health and Human Services Commission (HHSC) Rate Analysis Department;

(2) all required long-term care facility staffing and compensation reports have been filed with HHSC's Rate Analysis Department; and

(3) funds identified for recoupment from 1 TAC §355.308(n) or (o) or both (relating to Direct Care Staff Rate Component) have been repaid to HHSC or its designee [ DHS ].

(c) If an acceptable surety bond or letter of credit is presented to DHS, the vendor payments may be released. Facilities must ensure that this bond or irrevocable letter of credit is in a format acceptable to DHS, and does not include requirements that DHS, as a condition of receiving payment, either:

(1) return the original bond or letter; or

(2) submit to any draft requirement of an irrevocable letter of credit or surety bond, in addition to DHS's letter demanding payment.

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 18, 2004.

TRD-200404017

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Chapter 20. COST DETERMINATION PROCESS

40 TAC §§20.101 - 20.112

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

The Texas Department of Human Services (DHS) proposes to repeal its Cost Determination Process chapter (Chapter 20), consisting of §§20.101-20.112, concerning the cost determination process for providers of contracted client services. The purpose of the repeals is to remove the rules from DHS's rule base. They are duplicated in the rules of the Texas Health and Human Services Commission (HHSC) at 1 Texas Administrative Code Chapter 355 and will no longer be needed in DHS's rule base after the agency's transformation into the Department of Aging and Disability Services--mandated by House Bill 2292, 78th Legislature, Regular Session (2003)--takes place on September 1, 2004.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed repeals are in effect, there are no fiscal implications for state or local government as a result of repealing the sections.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the repeals are in effect, the public benefit anticipated as a result of repealing the sections is that only one set of rules will exist at HHSC for all rate determination matters, rather than having a duplicate set of rules in DHS's and HHSC's rule bases. There is no adverse economic effect on small or micro businesses, or on businesses of any size, as a result of repealing the sections, because the repeals affect duplicative rules and impose no additional requirements for provider agencies. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. There is no anticipated effect on local employment in geographic areas affected by these repeals.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 491- 1359 in HHSC's Rate Analysis Department. Written comments on the proposal may be submitted to Supervisor, Rules Unit-193, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to these repeals. The changes these repeals make do not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding these repeals.

The repeals are proposed under the Human Resources Code, Chapter 22, which authorizes DHS to administer public assistance programs.

The repeals implement the Human Resources Code, §§22.0001-22.040.

§20.101.Introduction.

§20.102.General Principles of Allowable and Unallowable Costs.

§20.103.Specifications for Allowable and Unallowable Costs.

§20.104.Revenues.

§20.105.General Reporting and Documentation Requirements, Methods, and Procedures.

§20.106.Basic Objectives and Criteria for Audit and Desk Review of Cost Reports.

§20.107.Notification of Exclusions and Adjustments.

§20.108.Determination of Inflation Indices.

§20.109.Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs.

§20.110.Informal Reviews and Formal Appeals.

§20.111.Administrative Contract Violations.

§20.112.Attendant Compensation Rate Enhancement

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 18, 2004.

TRD-200404011

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Chapter 41. VENDOR FISCAL INTERMEDIARY PAYMENTS

40 TAC §41.114

(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 Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Department of Human Services (DHS) proposes to repeal §41.114, concerning payment rates for the consumer directed services payment option, in its Vendor Fiscal Intermediary Payments chapter. The purpose of the repeal is to remove the rule from DHS's rule base. It is duplicated in the rules of the Texas Health and Human Services Commission (HHSC) at 1 Texas Administrative Code Chapter 355 and will no longer be needed in DHS's rule base after the agency's transformation into the Department of Aging and Disability Services-- mandated by House Bill 2292, 78th Legislature, Regular Session (2003)--takes place on September 1, 2004.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed repeal is in effect, there are no fiscal implications for state or local government as a result of repealing the section.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of repealing the section is that only one set of rules will exist at HHSC for all rate determination matters, rather than having a duplicate set of rules in DHS's and HHSC's rule bases. There is no adverse economic effect on small or micro businesses, or on businesses of any size, as a result of repealing the section, because the repeal affects duplicative rules and imposes no additional requirements. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. There is no anticipated effect on local employment in geographic areas affected by the repeal.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 491- 1359 in HHSC's Rate Analysis Department. Written comments on the proposal may be submitted to Supervisor, Rules Unit-193, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to this repeal. The change this repeal makes does not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding the repeal.

The repeal is proposed under the Human Resources Code, Chapter 22, which authorizes DHS to administer public assistance programs.

The repeal implements the Human Resources Code, §§22.0001-22.040.

§41.114.Consumer Directed Services Payment Option.

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 18, 2004.

TRD-200404012

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Chapter 47. CONTRACTING TO PROVIDE PRIMARY HOME CARE

Subchapter F. CLAIMS PAYMENT AND DOCUMENTATION

40 TAC §47.5902

(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 Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Department of Human Services (DHS) proposes to repeal §47.5902, concerning reimbursement methodology for primary home care, in its Contracting to Provide Primary Home Care chapter. The purpose of the repeal is to remove the rule from DHS's rule base. It is duplicated in the rules of the Texas Health and Human Services Commission (HHSC) at 1 Texas Administrative Code Chapter 355 and will no longer be needed in DHS's rule base after the agency's transformation into the Department of Aging and Disability Services-- mandated by House Bill 2292, 78th Legislature, Regular Session (2003)--takes place on September 1, 2004.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed repeal is in effect, there are no fiscal implications for state or local government as a result of repealing the section.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of repealing the section is that only one set of rules will exist at HHSC for all rate determination matters, rather than having a duplicate set of rules in DHS's and HHSC's rule bases. There is no adverse economic effect on small or micro businesses, or on businesses of any size, as a result of repealing the section, because the repeal affects duplicative rules and impose no additional requirements on provider agencies. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. There is no anticipated effect on local employment in geographic areas affected by the repeal.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 491- 1359 in HHSC's Rate Analysis Department. Written comments on the proposal may be submitted to Supervisor, Rules Unit-193, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to this repeal. The change this repeal makes does not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding the repeal.

The repeal is proposed under the Human Resources Code, Chapter 22, which authorizes DHS to administer public assistance programs.

The repeal implements the Human Resources Code, §§22.0001-22.040.

§47.5902.Reimbursement Methodology for Primary Home Care.

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 18, 2004.

TRD-200404013

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Chapter 48. COMMUNITY CARE FOR AGED AND DISABLED

Subchapter H. ELIGIBILITY

40 TAC §§48.2911 - 48.2915, 48.2918, 48.2920, 48.2921, 48.2928

The Texas Department of Human Services (DHS) proposes to amend §§48.2911, concerning family care; 48.2912, concerning congregate and home-delivered meals; 48.2913, concerning adult foster care; 48.2914, concerning special services to persons with disabilities; 48.2918, concerning eligibility for primary home care; 48.2920, concerning residential care; 48.2921, concerning emergency care; and 48.2928, concerning emergency response services; and proposes new §48.2915, concerning day activity and health services, in its Community Care for Aged and Disabled chapter.

The primary purpose of the amendments is to replace rule language referring to specific functional eligibility scores on DHS's current community care assessment instrument (Form 2060) with language that more generally explains how DHS determines functional eligibility, in anticipation of the implementation of a new assessment instrument. Pursuant to Rider 31 of DHS's appropriations in the 2004-2005 General Appropriations Act, DHS is developing a new community care assessment instrument that will replace the current Form 2060; therefore, references to the current Form 2060 must be deleted to eliminate possible conflict with the new form and its scoring system. Additionally, the amendments to §48.2911 and §48.2918 remove obsolete language; update the terminology regarding client status from "Priority 1" to "priority;" and add state schools, state hospitals, jails, and prisons to the list of settings in which family care, primary home care, and community attendant care services cannot be provided. These additions are not changes, but rather clarify existing policy. The amendment to §48.2918 also replaces the requirement for a physician's diagnosis to substantiate the client's medical condition with a requirement for a signed and dated practitioner's statement that the client has a current medical need for assistance with personal care tasks and other activities of daily living, and eliminates prior approval of medical need for primary home care by the department regional nurse. The latter changes to §48.2918 make the eligibility rule consistent with the provider agency rules in DHS's Chapter 47 (Contracting to Provide Primary Home Care).

New §48.2915 places the Day Activity and Health Services (DAHS) eligibility rule, currently in DHS's Chapter 98 (§98.201), with the other eligibility rules in Chapter 48. The new rule retains the eligibility criteria in §98.201 and adds functional need criteria to the program's eligibility requirements. The purpose of this addition is to help ensure that program resources are used for individuals in the greatest need of services. The new rule also stipulates that clients receiving DAHS on the effective date of the rule may continue to receive services until DHS assesses the client's level of functional need.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed sections are in effect, there are fiscal implications for state government as a result of enforcing or administering the sections. There are no anticipated fiscal implications for local governments as a result of enforcing or administering the sections.

The effect on state government for the first five-year period the sections are in effect is an estimated reduction in cost of $1,565,813 in fiscal year (FY) 2005; $1,650,444 in FY 2006; $1,708,276 in FY 2007; $1,766,109 in FY 2008; and $1,823,921 in FY 2009.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing the sections is that program eligibility requirements will be more clearly understandable, and limited program resources will be preserved for individuals in the greatest need of services. There may be an indirect adverse effect on businesses as a result of enforcing or administering the sections because some businesses that currently provide DAHS may lose Medicaid clients; however, the impact should not disproportionately affect small or micro businesses. 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 Marilyn Eaton at (512) 438- 2936 in DHS's Long Term Care Services. Written comments on the proposal may be submitted to Supervisor, Rules Unit-179, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. The changes these rules make do not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

These eligibility rules are proposed by DHS, subject to the subsequent transfer of rulemaking authority to the Texas Health and Human Services Commission (HHSC). DHS is currently scheduled to transition sometime in 2004 into two successor agencies, the existing HHSC and a new agency, the Department of Aging and Disability Services (DADS).

This reorganization is mandated by House Bill 2292, 78th Legislature, Regular Session (2003).

At the inception of operations of DADS, the authority to adopt all rules for the operation and provision of health and human services by DADS will lie with HHSC. In addition, the statutory reorganization mandates the transfer to HHSC of the policy, rulemaking, and operational authority, within an eligibility services division, for eligibility determinations for all health and human services programs. These changes may result in the migration of these rules from one title of the Texas Administrative Code to another or other changes.

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

The amendments and new section affect the Human Resources Code, §§22.0001- 22.040 and §§32.001-32.067.

§48.2911.Family Care.

(a) To be eligible for family care, the applicant/client must:

(1) meet the income and resource guidelines established by the department in §§48.2902, 48.2903, 48.2922, and 48.2923 of this title (relating to Income and Income Eligibles; Determination of Countable Income; Resource Limits; and Countable Resources);

(2) meet the minimum functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding; and

(3) be ineligible to receive attendant care services funded through Medicaid. [ Family care applicants/clients are eligible for services if they score at least 24 on the client needs assessment questionnaire. ]

(b) If eligible, an applicant/client may receive one or more of the following services:

(1) personal care ; [ , ]

(2) household tasks ; [ , ]

(3) meal preparation ; [ , ] and

(4) escort. [ Beginning July 1, 1992, the applicant/client is eligible for no more than 50 hours of family care services a week (effective May 1, 1993, 42 hours a week for a Priority 1 family care applicant/client). ]

(c) [ (b) ] Family care services are provided in a client's residence. A client is not eligible to receive family care services while living in:

(1) a hospital;

(2) a skilled nursing facility;

(3) an intermediate care facility;

(4) an assisted living facility [ a personal care home (institution) ];

(5) a foster care setting; [ or ]

(6) a jail or prison;

(7) a state school;

(8) a state hospital; or

(9) [ (6) ] any other setting where sources outside the family care program are available to provide care.

(d) [ (c) ] The applicant/client must require at least six hours of family care per week to be eligible, unless the applicant/client [ . An applicant/client requiring fewer than six hours per week may be eligible if he ]:

(1) requires [ scores 30 or above and ] family care [ is essential ] to provide respite to the caregiver [ or to enable the applicant to remain in the community ];

(2) lives in the same household as another individual receiving family care , community based alternatives personal assistance services, community attendant services, or primary home care;

(3) receives one or more of the following services (through the department or other resources):

(A) congregate or home-delivered meals ; [ , ]

(B) assistance with activities of daily living from a home health aide ; [ , ]

(C) day activity and health services ; [ , ] or

(D) special services to persons with disabilities in adult day care ; [ , whether or not any of these services are purchased by the department; or ]

(4) receives aid-and-attendance benefits from the Veterans Administration; [ or ]

(5) receives services through the department's In-home and Family Support Program ; or [ . ]

(6) is determined, based upon the functional assessment, to be at high risk of institutionalization without family care.

[ (d) To be eligible for family care, the individual must not be eligible to receive attendant care services funded through Medicaid.]

(e) The [ Establishment of a priority level is made by the ] community care case manager establishes a priority status for each client based on the functional assessment [ and is based on an assessment of the client's circumstances and on discussions with the client and others actively involved with the client. A Priority 1 family care client is an individual who is dependent upon the services of the family care attendant for the performance of certain personal care tasks and whose health, safety, or well-being may be jeopardized if services on a normally scheduled service shift were not provided ]. An individual is considered to have priority status [ a Priority 1 family care client ] if the following criteria are met : [ . ]

(1) The individual is completely unable to perform one or more of the following activities without hands-on assistance from another person:

(A) transferring himself into or out of bed or a chair or on or off a toilet;

(B) feeding himself;

(C) getting to or using the toilet; or

(D) preparing a meal . [ ; or ]

[ (E) taking self-administered prescribed medications.]

(2) During a normally scheduled service shift, no one is readily available [ who is capable of providing, and who is willing ] to provide [ , ] the needed assistance other than the family care attendant.

(3) The [ DHS ] community care case manager determines that there is a high likelihood the individual's health, safety, or well-being would be jeopardized if family care services were not provided on a single given shift.

(f) A client with priority status may receive no more than 42 hours of service per week.

(g) A client without priority status may receive no more than 50 hours of service per week.

§48.2912. Home-Delivered [ Congregate and Home-delivered ] Meals.

To be eligible for [ congregate or ] home-delivered meals, applicants and clients must meet the functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding [ score at least 20 on the client needs assessment questionnaire ].

§48.2913.Adult Foster Care.

To be eligible for adult foster care, applicants and clients must have the approval of the Community Care for Aged and Disabled unit supervisor and meet the functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding [ Applicants/clients must score at least 18 on the client needs assessment questionnaire and have the approval of the CCAD unit supervisor, to be eligible for adult foster care. Individuals receiving adult foster care on July 1, 1986, continue to be eligible for services as long as they score nine on the client needs assessment questionnaire. If these grandfathered clients discontinue receiving services, they must meet an eligibility score of at least 18 in order to qualify for future services ].

§48.2914.Special Services to Persons with Disabilities.

To be eligible for special services to persons with disabilities, clients must meet the functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding [ score at least nine on the client needs assessment questionnaire ]. Applicants may be admitted to the attendant services program only if their needs do not exceed the program's available services.

§48.2915.Day Activity and Health Services.

To be eligible for day activity and health services (DAHS), an applicant/client must:

(1) be Medicaid eligible or meet the income and resource guidelines established by the department in §§48.2902, 48.2903, 48.2922, and 48.2923 of this title (relating to Income and Income Eligibles; Determination of Countable Income; Resource Limits; and Countable Resources);

(2) meet the minimum functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding. Clients receiving services on the effective date of this rule may continue to receive services until the department assesses the client's level of functional need;

(3) have a medical diagnosis, a related functional disability, and physician's orders requiring care, monitoring, or intervention by a licensed vocational nurse or a registered nurse; and

(4) have one or more of the following personal care or restorative needs that can be stabilized, maintained, or improved by participation in DAHS:

(A) Bathing, dressing, and grooming. The applicant/client may need help with bathing, dressing, and routine hair and skin care.

(B) Transfer and ambulation. The applicant/client may need help with transferring from chair or commode or walking about.

(C) Toileting. The applicant/client may need help with using a bedpan, urinal, or commode; emptying a catheter or ostomy bag; or managing incontinence of bowel or bladder. The applicant/client may require perineal care or bowel or bladder training.

(D) Feeding. The applicant/client may need feeding (for example, gastric, NG tube, feeding pump) or help with eating.

(E) Fluid intake. The applicant/client may need assistance in maintaining adequate fluid intake.

(F) Nutrition. The applicant/client may need therapeutic diet or texture modification for treatment or control of an existing condition.

(G) Medication. The applicant/client may require supervision or administration of ordered medications or injectables.

(H) Treatments. The applicant/client may require treatments that include:

(i) routine or frequent care for indwelling catheter;

(ii) measurement of weight related to monitoring a specific condition;

(iii) assistance or supervision of ostomy care based on individual needs;

(iv) taking and recording of vital signs to monitor an existing condition or medications being administered;

(v) periodic testing of blood or urine for sugar/acetone content or both;

(vi) assistance with skin care including application of lotions, observations, assessment, or treatment of skin conditions based on physician's orders for prevention and healing decubiti and chronic skin conditions; and

(vii) application of sterile dressings and elastic stockings and bandages.

(I) Restorative nursing procedures. The applicant/client requires assistance with range-of- motion exercises (active or passive) or proper positioning.

(J) Behavioral problems. The applicant/client may have behavioral problems that can be managed by facility staff.

§48.2918.[ Eligibility for ] Primary Home Care or Community Attendant Services .

(a) To be eligible [ Applicants/clients ] for primary home care or community attendant (CA) services , the [ must meet all of the following eligibility criteria. The ] applicant/client must:

(1) be eligible for Medicaid in a community setting [ outside an institution ] or be eligible under the provisions of the Social Security Act, §1929(b)(2)(B);

(2) meet the minimum functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding [ score 24 or above on the client needs assessment questionnaire ];

(3) have a medical need for assistance with personal care.

(A) The client's medical condition must be [ substantiated by symptoms and a physician's diagnosis(es). The medical condition must be ] the cause of the client's functional impairment in performing personal care tasks.

(B) Persons diagnosed with mental illness, mental retardation, or both, are not considered to have established medical need based solely on such diagnosis. The diagnoses [ Although mental illness and mental retardation are not considered medical conditions, they ] do not disqualify a client for eligibility as long as the client's functional impairment is related to a coexisting medical condition;

(4) have a signed and dated practitioner's statement that includes a statement that the client has a current medical need for assistance with personal care tasks and other activities of daily living [ physician's order for primary home care ]; and

(5) require at least six hours of service [ primary home care ] per week. An applicant/client requiring fewer than six hours of service per week may be eligible if the applicant/client [ he meets at least one of the following criteria ]:

(A) requires [ scores at least 30 on the client needs assessment questionnaire and ] primary home care or community attendant services [ is essential ] to provide respite care to the caregiver [ or to enable the applicant/client to remain in the community ];

(B) lives in the same household as another individual receiving [ family care or ] primary home care , community attendant services, family care, or community based alternatives personal assistance services ;

(C) receives one or more of the following services (through the department or other resources):

(i) congregate or home-delivered meals ; [ , ]

(ii) assistance with activities of daily living from a home health aide ; [ , ]

(iii) day activity and health services ; [ , ] or

(iv) special services to persons with disabilities in adult day care ; [ , whether or not any of these services are purchased by the department; or ]

(D) receives aid-and-attendance benefits from the Veterans Administration;

(E) receives services through the department's In-home and Family Support Program; [ or ]

(F) receives services through the [ Texas Department of Health's ] Medically Dependent Children Program (MDCP) ; or [ . ]

(G) is determined, based upon the functional assessment, to be at high risk of institutionalization without primary home care or community attendant care services.

(b) To receive services, the applicant/client must reside in a place other than:

(1) a hospital;

(2) a skilled nursing facility;

(3) an intermediate care facility; [ or ]

(4) an assisted living facility;

(5) a foster care setting;

(6) a jail or prison;

(7) a state school;

(8) a state hospital; or

(9) [ (4) ] any other setting where [ environment where family members or ] sources outside the primary home care program are available to provide personal care.

(c) A client with priority status may receive no more than 42 hours of service per week. A client without priority status may receive no more than 50 hours of service per week [ Beginning July 1, 1992, an eligible applicant or client cannot receive more than 50 hours of primary home care per week (effective May 1, 1993, 42 hours a week for a Priority 1 primary home care applicant or client) ].

[ (d) Applicants must have prior approval of medical need for primary home care from the department regional nurse. Only initial prior approval of medical need is required for applicants who have a medical condition causing functional impairment in personal care. Annual prior approval by the department regional nurse is required for clients who are eligible under the provisions of the Social Security Act, §1929(b).]

[ (e) Services for eligible clients are authorized for 12 months, with the exception of time-limited services specified in subsection (d) of this section.]

(d) [ (f) ] The [ Establishment of a priority level is made by the ] community care case manager establishes a priority status for each client based on the functional assessment [ based on an assessment of the client's circumstances and on discussions with the client and others actively involved with the client. A Priority 1 primary home care client is an individual who is dependent upon the services of the primary home care attendant for the performance of certain personal care tasks and whose health, safety, or well- being may be jeopardized if services on a normally scheduled service shift were not provided ]. An individual is considered to have priority status [ a Priority 1 primary home care client ] if the following criteria are met : [ . ]

(1) The individual is completely unable to perform one or more of the following activities without hands-on assistance from another person:

(A) transferring himself into or out of bed or a chair or on off a toilet;

(B) feeding himself;

(C) getting to or using the toilet; or

(D) preparing a meal . [ ; or ]

[ (E) taking self-administered prescribed medications.]

(2) During a normally [ normal ] scheduled service shift, no one is readily available [ who is capable of providing, and who is willing ] to provide [ , ] the needed assistance other than the [ primary home care ] attendant.

(3) The [ Texas Department of Human Services ] community care case manager determines that there is a high likelihood the individual's health, safety, or well-being would be jeopardized if [ primary home care ] services were not provided on a single given shift.

§48.2920.Residential Care.

(a) Eligibility for residential care is based on the following criteria:

(1) (No change.)

(2) the applicant must meet the functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding [ score at least 18 points on the client needs assessment questionnaire ];

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

(b)-(d) (No change.)

§48.2921.Emergency Care.

(a) Eligibility for emergency care is based on the following criteria.

(1) (No change.)

(2) The applicant:

(A) (No change.)

(B) meets the functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding [ demonstrates a need for service by scoring at least 18 points on the client needs assessment questionnaire ].

(3) (No change.)

(b)-(c) (No change.)

§48.2928.Emergency Response Services.

To be eligible for emergency response services, a [ A ] client must :

(1) meet the functional need criteria as set by the department. The department uses a standardized assessment instrument to measure the client's ability to perform activities of daily living. This yields a score, which is a measure of the client's level of functional need. The department sets the minimum required score for a client to be eligible, which the department may periodically adjust commensurate with available funding; and [ score at least 20 on the client needs assessment questionnaire and ]

(2) meet the following requirements [ in paragraphs (1)-(5) of this section to be eligible for emergency response services ]:

(A) [ (1) ] live [ Live ] alone, be alone routinely for eight or more hours each day, or live with an incapacitated individual who could not call for help or otherwise assist the client in an emergency;

(B) [ (2) ] be [ Be ] mentally alert enough to operate the equipment properly, in the judgment of the DHS caseworker;

(C) [ (3) ] have [ Have ] a telephone with a private line, if the system requires a private line to function properly;

(D) [ (4) ] be [ Be ] willing to sign a release statement that allows the responder to make a forced entry into the client's home if he is asked to respond to an activated alarm call and has no other means of entering the home to respond; and

(E) [ (5) ] live [ Live ] in a place other than a skilled institution, assisted living facility [ personal care home ], foster care setting, or any other setting where 24-hour [ 24 hour ] supervision is available.

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 18, 2004.

TRD-200404035

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Chapter 98. ADULT DAY CARE AND DAY ACTIVITY AND HEALTH SERVICES REQUIREMENTS

Subchapter H. DAY ACTIVITY AND HEALTH SERVICES (DAHS) CONTRACTUAL REQUIREMENTS

40 TAC §98.201, §98.204

The Texas Department of Human Services (DHS) proposes to amend §98.201, concerning eligibility requirements for participation, and §98.204, concerning facility-initiated referrals, in its Adult Day Care and Day Activity and Health Services Requirements chapter. The purpose of the amendment to §98.201 is to replace the eligibility requirements for individuals in the Day Activity and Health Services (DAHS) program with a reference to the new DAHS eligibility rule in DHS's Chapter 48 (Community Care for Aged and Disabled). The new rule concerning DAHS eligibility (§48.2915) is proposed elsewhere in this issue of the Texas Register . The amendment to §98.204 adds a condition under which a facility may not be reimbursed for services. In a facility-initiated referral, if an applicant for DAHS is determined ineligible for failure to meet the functional need criteria, the regional nurse cancels the facility- initiated approval and the facility is not reimbursed for services. The amendment is necessary because of the addition of a functional need requirement to the DAHS eligibility rule at 40 TAC §48.2915, proposed elsewhere in this issue of the Texas Register .

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed sections are in effect, there are no fiscal implications for state or local government as a result of enforcing or administering the sections.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing §98.201 is that the eligibility requirements for DAHS will be located in Chapter 48 with the other community care program eligibility requirements and Chapter 98 will include an accurate reference to the rule. The public benefit anticipated as a result of enforcing §98.204 is that the provider rule will be consistent with the DAHS eligibility rule. There is no adverse economic effect on small or micro businesses as a result of enforcing or administering §98.201 because the amendment concerns eligibility of individuals for DAHS and does not affect businesses. There may be an adverse economic effect on businesses as a result of enforcing or administering §98.204 because DAHS providers may choose to provide services to Medicaid applicants who are later found to be ineligible for services. If they are determined ineligible, the providers will not be paid for those prior services, but there is no requirement that they provide services before a determination of eligibility. This potential adverse impact should not disproportionately affect small or micro businesses. 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 this sections.

Questions about the content of this proposal may be directed to Marilyn Eaton at (512) 438- 2936 in DHS's Long Term Care Services. Written comments on the proposal may be submitted to Supervisor, Rules Unit-179, 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 Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. The changes these rules make does not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding this proposal.

The rules are proposed by DHS, subject to the subsequent transfer of rulemaking authority to the Texas Health and Human Services Commission (HHSC). DHS is currently scheduled to transition sometime in 2004 into two successor agencies, the existing HHSC and a new agency, the Department of Aging and Disability Services (DADS).

This reorganization is mandated by House Bill 2292, 78th Legislature, Regular Session (2003).

At the inception of operations of DADS, the authority to adopt all rules for the operation and provision of health and human services by DADS will lie with HHSC. In addition, the statutory reorganization mandates the transfer to HHSC of the policy, rulemaking, and operational authority, within an eligibility services division, for eligibility determinations for all health and human services programs. These changes may result in the migration of this rule from one title of the Texas Administrative Code to another or other changes.

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

The amendments affect the Human Resources Code, §§22.0001-22.040 and §§32.001-32.067.

§98.201.Eligibility Requirements for Participation.

The client must meet eligibility requirements described in §48.2915 of this title (relating to Day Activity and Health Services).

[ (a) Eligibility. The client must be Medicaid eligible (Title XIX Day Activity and Health Services (DAHS)) or meet social services block grant income eligibility guidelines and resource limits.]

[ (b) Medical criteria for DAHS. To be eligible for DAHS, the applicant/client must have:]

[ (1) a medical diagnosis and physician's orders requiring care, monitoring, or intervention by a licensed vocational nurse or a registered nurse;]

[ (2) a related functional disability; and]

[ (3) one or more of the following personal care or restorative needs which can be stabilized, maintained, or improved by participation in DAHS:]

[ (A) Bathing, dressing, and grooming. The applicant/client may need help with bathing, dressing, and routine hair and skin care.]

[ (B) Transfer and ambulation. The applicant/client may need help with transferring from chair or commode or walking about.]

[ (C) Toileting. The applicant/client may need help with using a bedpan, urinal, or commode; emptying a catheter or ostomy bag; or managing incontinence of bowel or bladder. The applicant/client may require perineal care or bowel or bladder training.]

[ (D) Feeding. The applicant/client may need feeding (for example, gastric, ng tube, feeding pump) or help with eating.]

[ (E) Fluid intake. The applicant/client may need assistance in maintaining adequate fluid intake.]

[ (F) Nutrition. The applicant/client may need therapeutic diet or texture modification for treatment or control of an existing condition.]

[ (G) Medication. The applicant/client may require supervision or administration of ordered medications or injectables.]

[ (H) Treatments. The applicant/client may require treatments that include:]

[ (i) catheter care--routine or frequent care for indwelling catheter;]

[ (ii) weight--measurement of weight related to monitoring a specific condition;]

[ (iii) ostomy care--assistance or supervision of ostomy care based on individual needs;]

[ (iv) recording of vital signs--taking and recording of vital signs to monitor an existing condition or medications being administered;]

[ (v) diabetic tests--periodic testing of blood or urine for sugar/acetone content or both;]

[ (vi) skin care--assistance with skin care including application of lotions, observations, assessment, or treatment of skin conditions based on physician's orders for prevention and healing decubiti and chronic skin conditions; and]

[ (vii) dressings--dressing based on the physician's orders and the application of sterile dressings and elastic stockings and bandages.]

[ (I) Restorative nursing procedures. The applicant/client requires assistance with range-of- motion exercises (active or passive) or proper positioning.]

[ (J) Behavioral problems. The applicant/client may have behavioral problems which can be managed by facility staff.]

[ (c) Prior approval of DAHS services. An individual seeking initial prior approval for day activity and health services must have a physician's order for the service. ] The physician providing the physician's order cannot be the facility owner or have a significant financial or contractual relationship with the facility.

§98.204.Facility-Initiated Referrals.

(a)-(c) (No change.)

(d) If the facility fails to submit prior approval forms or additional documentation within required time frames, [ or ] if the additional documentation is not adequate, or if the applicant is determined ineligible by the DHS caseworker, the regional nurse cancels the facility- initiated prior approval and the facility is not reimbursed for services.

(e) (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 18, 2004.

TRD-200404036

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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


Subchapter I. REIMBURSEMENT METHODOLOGY FOR DAY ACTIVITY AND HEALTH SERVICES (DAHS)

40 TAC §98.6907

(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 Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Department of Human Services (DHS) proposes to repeal §98.6907, concerning reimbursement methodology for day activity and health services, in its Adult Day Care and Day Activity and Health Services Requirements chapter. The purpose of the repeal is to remove the rule from DHS's rule base. It is duplicated in the rules of the Texas Health and Human Services Commission's (HHSC) at 1 Texas Administrative Code Chapter 355 and will no longer be needed in DHS's rule base after the agency's transformation into the Department of Aging and Disability Services--mandated by House Bill 2292, 78th Legislature, Regular Session (2003)--takes place on September 1, 2004.

Gordon Taylor, Chief Financial Officer, has determined that, for the first five-year period the proposed repeal is in effect, there are no fiscal implications for state or local government as a result of repealing the section.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of repealing the section is that only one set of rules will exist at HHSC for all rate determination matters, rather than having a duplicate set of rules in DHS's and HHSC's rule bases. There is no adverse economic effect on small or micro businesses, or on businesses of any size, as a result of repealing the section, because the repeal affects duplicative rules and imposes no additional requirements on provider agencies. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. There is no anticipated effect on local employment in geographic areas affected by the repeal.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 491- 1359 in HHSC's Rate Analysis Department. Written comments on the proposal may be submitted to Supervisor, Rules Unit-193, 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 Government Code, §2007.003(b), DHS has determined that Chapter 2007 of the Government Code does not apply to this repeal. The change this repeal makes does not implicate a recognized interest in private real property. Accordingly, DHS is not required to complete a takings impact assessment regarding the repeal.

The repeal is proposed under the Human Resources Code, Chapters 22 and 103, which authorize DHS to administer public assistance programs, and to license and regulate adult day care facilities.

The repeal implements the Human Resources Code, §§22.0001-22.040 and §§103.001-103.011.

§98.6907.Reimbursement Methodology for Day Activity and Health Services.

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 18, 2004.

TRD-200404014

Carey Smith

Deputy Commissioner, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 1, 2004

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