TITLE 1.ADMINISTRATION

Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 354. MEDICAID HEALTH SERVICES

Subchapter A. PURCHASED HEALTH SERVICES

33. TELEMEDICINE SERVICES

1 TAC §§354.1430, 354.1432, 354.1434

The Texas Health and Human Services Commission (HHSC or Commission) proposes the following new rules for Telemedicine: §354.1430, Definitions and §354.1432, Benefits and Limitations, and §354.1434, Requirements for Providers.

Background and Justification

Section 531.02173 of the Government Code directs the Commission to align the Medicaid telemedicine reimbursement policies with Medicare reimbursement policies to the extent possible. To comply with the direction, HHSC proposes to add three new rules regarding Telemedicine Services to its Texas Medicaid Program rules. The new rules separate the benefits from reimbursement, update terminology, and delineate the responsibilities for telemedicine providers.

Section-by-Section Summary

The information contained in the rules is outlined in this section. The first new rule §354.1430, Definitions, defines the terms used within Division 33, Telemedicine Services.

The second new rule, §354.1432, describes the telemedicine benefits and limitations covered through the Texas Medicaid Program.

The third rule, §354.1434, explains who will be reimbursed for delivering telemedicine services to Medicaid recipients and the requirements for telemedicine providers.

Fiscal Note

Tom Suehs, Deputy Executive Commissioner for Financial Services, has determined that during the first five-year period the proposed rules are in effect there will be minimal fiscal impact to state government. The proposed rules will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Small and Micro-business Impact Analysis

Mr. Suehs has also determined that there will be no effect on small businesses or micro businesses to comply with the proposal as they will not be required to alter their business practices as a result of the rule. There are no anticipated economic costs to persons who are required to comply with the proposed rule. There is no anticipated negative impact on local employment.

Public Benefit

David Balland, Associate Commissioner for Medicaid and CHIP, has determined that for each year of the first five years the sections are in effect, the public will benefit from the adoption of the section. The anticipated public benefit, as a result of enforcing the new sections, will be to align Medicaid rules with Medicare to the extent possible and to provide clear information related to the telemedicine benefits.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environment exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environment exposure.

Takings Impact Assessment

HHSC has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under §2007.043 of the Government Code.

Public Comment

Written comments on the proposal may be submitted to Arnulfo Gomez, at Braker Center Bldg. H, 11209 Metric Blvd., Austin, Texas 78758, by fax to (512) 491-1953 or by e-mail to arnulfo.gomez@hhsc.state.tx.us, within 30 days of publication of this proposal in the Texas Register .

Public Hearing

A public hearing is scheduled for September 22, 2005 at 10:00 a.m. in the Lone Star Room of Building H, Health and Human Services Commission, 11209 Metric Blvd., Austin, Texas 78758. Persons requiring further information, special assistance, or accommodations should contact Carmen Capetillo at (512) 491-1104.

Statutory Authority

The new rules are proposed under the Texas Government Code, §531.033, which provides the Commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021 and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements).

The proposed new rules affect the Human Resources Code, Chapter 32, and the Texas Government Code, Chapter 531. No other statutes, articles, or codes are affected by this proposal.

§354.1430.Definitions.

Definitions. The following words and terms, when used in this chapter, have the following meanings.

(1) Hub Site--A hub site is the location where the consulting physician is physically located.

(2) Hub Site Provider--A hub site provider must be a:

(A) Physician at a rural health facility or an accredited medical or osteopathic school located in Texas, or a physician at one of the following entities affiliated through a written contract or agreement with a government agency, accredited medical, or osteopathic school located in Texas:

(B) Hospital;

(C) Teaching hospital;

(D) Tertiary center; or

(E) Health clinic.

(3) Remote Site--A remote site is where the Medicaid client is physically located.

(4) Remote Site Provider--A remote site provider is located in rural or medically underserved areas and is limited to the following provider types:

(A) Physician;

(B) Advanced practice nurse (APN);

(C) Certified nurse midwife (CNM);

(D) Hospital;

(E) Federally qualified health center (FQHC);

(F) Rural health clinic (RHC).

(5) Rural area--A rural area is defined as a county with a population of 50,000 or less or a county that was not designated as a metropolitan area by the United States Bureau of the Census according to the most current federal census and does not have within the boundaries of the county a hospital, licensed under chapter 241, Health and Safety Code, with more than 100 beds.

(6) Rural Health Facility--A rural health facility is located in a rural county and is affiliated with an accredited medical school, teaching hospital, or government agency through a written contract or agreement.

(7) Telemedicine--Telemedicine is a method of health care service delivery used to facilitate medical consultations by a physician to health care providers in rural or underserved areas for purposes of patient diagnosis or treatment that requires advanced telecommunications technologies.

(8) Telepathology--Telepathology is the practice of pathology (consultation, education and research) using telecommunications to transmit data and images between two or more sites remotely located from each other.

(9) Teleradiology--Teleradiology is a means of electronically transmitting radiographic patient images and consultative text from one location to another.

(10) Underserved--An underserved area that meets the definition of Medically Underserved Area (MUA) or Medically Underserved Population (MUP) by the U.S. Department of Health and Human Services.

§354.1432.Benefits and Limitations.

(a) Telemedicine services are a health care benefit of the Texas Medicaid Program. Telemedicine services are described below.

(1) Telemedicine services are direct "face-to-face" interactive video communications with the client. Teleradiology and telepathology are exceptions to the direct face-to-face requirement.

(2) Telemedicine hub site providers may be reimbursed only for consultation or interpretation using interactive video as defined by Medicaid telemedicine medical policy and as currently reimbursed under the Texas Medicaid Program.

(3) Telemedicine remote sites may be reimbursed for services when any one of the following places of service are utilized and billed:

(A) Practitioner's office;

(B) Rural Health Clinic;

(C) Federally Qualified Health Clinic;

(D) Inpatient hospital;

(E) Outpatient hospital;

(F) Emergency room;

(G) ICR-MR facility.

(4) Telephone conversations, chart reviews, electronic mail messages and facsimile transmissions do not constitute a telemedicine interactive video consultation, and will not be reimbursed as telemedicine service.

(5) Texas Health Steps (THSteps), also known as Early and Periodic Screening, Diagnosis and Treatment, preventive health visits are not reimbursed if performed via telemedicine. Health care or treatment provided for conditions identified during these preventive health visits may be reimbursed if the health care is provided via telemedicine.

(6) Nursing facilities, skilled nursing facilities, and client homes are not approved places of service as remote sites for telemedicine services.

(b) Reimbursement for Services Performed Using Telemedicine.

(1) Providers seeking reimbursement for telemedicine services must provide and bill for the service in the manner prescribed by the Texas Medicaid Program.

(2) Telemedicine services are reimbursed in accordance with the existing Medicaid reimbursement methodology as defined in §355.7001 of this title (relating to Telemedicine Services Reimbursement).

§354.1434.Requirements for Telemedicine Providers.

Providers of telemedicine services must adhere to the requirements listed in this section.

(1) Must be enrolled in the Texas Medicaid Program to be eligible for reimbursement.

(2) The hub site provider's findings must be documented in writing in the recipient's medical records at the remote site.

(3) The remote site provider must be present with the client during the interactive video telemedicine visit.

(4) The remote site provider is responsible for providing or coordinating the plan of care and treatment after consulting with the hub site provider.

(5) Information about the diagnosis, evaluation, or treatment of a client with Medicaid coverage by a person licensed or certified to perform the diagnosis, evaluation or treatment of any medical, mental or emotional disorder, or drug abuse, is confidential information that the provider may disclose only to authorized people. Only the client may give written permission for release of any pertinent information before client information can be released, and confidentiality must be maintained in all other aspects. The signed consent form or documentation of consent for release of information is to become part of the medical record at the remote site.

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 August 9, 2005.

TRD-200503298

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: September 25, 2005

For further information, please call: (512) 424-6900


Chapter 355. REIMBURSEMENT RATES

Subchapter G. TELEMEDICINE SERVICES AND OTHER COMMUNITY-BASED SERVICES

The Texas Health and Human Services Commission (HHSC) proposes to repeal and replace the following rule: §355.7001, Telemedicine Reimbursement Services under Chapter 355, Subchapter G.

Background and Justification

Section 531.02173 of the Government Code directs HHSC to align the Medicaid telemedicine reimbursement policies with Medicare reimbursement policies. In accordance with this directive, HHSC proposes to repeal the following rule: §355.7001, Telemedicine Services, because HHSC is proposing to replace it with a new rule §355.7001, to be titled Telemedicine Services Reimbursement. The purpose of the repeal is to update terminology and to reorganize the rule content to identify and clearly delineate those responsibilities that are reimbursement and program activities.

Section-by-Section Summary

Repeal §355.7001, "Telemedicine Services" and submit as §355.7001, "Telemedicine Services Reimbursement" in order to clarify and distinguish those activities that are considered reimbursement apart from definitions and program benefits and limitations. The submitted §355.7001, identifies those services provided by government-funded health program, e.g., Federally Qualified Health Clinics (FQHC's) and Rural Health Clinics (RHC's). The list of Telemedicine definitions in §355.7001, are removed and placed in the new §354.1430, "Definitions," and the new §354.1432, "Benefits and Limitations" is added to better define program benefits and limitations apart from reimbursement activities.

Fiscal Note

Tom Suehs, Deputy Executive Commissioner for Financial Services, has determined that during the first five-year period the proposed rules are in effect there will be minimal fiscal impact to state government. The proposed rules will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Small and Micro-business Impact Analysis

Mr. Suehs has also determined that there will be no effect on small businesses or micro businesses to comply with the proposal, as they will not be required to alter their business practices as a result of the rule. There are no anticipated economic costs to persons who are required to comply with the proposed rules. There is no anticipated negative impact on local employment.

Public Benefit

David Balland, Associate Commissioner for Medicaid and Children's Health Insurance Program (CHIP), has determined that for each year of the first five years the proposed rules are in effect, the public will benefit from the adoption of the proposed rules. The anticipated public benefit, as a result of enforcing the proposed rules, will be the consistency of information to providers of Telemedicine services.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

Takings Impact Assessment

HHSC has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under §2007.043 of the Government Code.

Public Comment

Written comments on the proposal may be submitted to Arnulfo Gomez, at H-600, 1100 W. 49th St., Austin, Texas 78756, by fax to (512) 491-1953, or by e-mail to arnulfo.gomez@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register .

Public Hearing

A public hearing is scheduled for September 22, 2005 at 10:00 a.m. in the Lone Star Room of Building H, Health and Human Services Commission, 11209 Metric Blvd., Austin, Texas 78758. Persons requiring further information, special assistance, or accommodations should contact Carmen Capetillo at (512) 491-1104.

1 TAC §355.7001

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

The repeal is proposed under the Texas Government Code, §531.033, which provides the Commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021 and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

The proposed repeal affects the Human Resources Code, Chapter 32, and the Texas Government Code, Chapter 531. No other statutes, articles, or codes are affected by this proposal.

§355.7001.Telemedicine 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 August 9, 2005.

TRD-200503299

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: September 25, 2005

For further information, please call: (512) 424-6900


1 TAC §355.7001

The new rule is proposed under the Texas Government Code, §531.033, which provides the Commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021 and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

The proposed new rule affects the Human Resources Code, Chapter 32, and the Texas Government Code, Chapter 531. No other statutes, articles, or codes are affected by this proposal.

§355.7001.Telemedicine Services Reimbursement.

Telemedicine services are reimbursed in accordance with the existing Medicaid reimbursement methodology for the applicable provider type as follows:

(1) physicians, 1 TAC §355.8085;

(2) advanced practice nurses (APNs), 1 TAC §355.8281;

(3) certified nurse midwives (CNMs), 1 TAC §355.8161;

(4) hospitals, 1 TAC §355.8063;

(5) federally qualified health centers (FQHCs), 1 TAC §355.8261; and

(6) rural health clinics (RHCs), 1 TAC §355.8101.

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 August 9, 2005.

TRD-200503300

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: September 25, 2005

For further information, please call: (512) 424-6900