TITLE 1.ADMINISTRATION

Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. REIMBURSEMENT RATES

Subchapter J. PURCHASED HEALTH SERVICES

21. CASE MANAGEMENT FOR CHILDREN AND PREGNANT WOMEN

1 TAC §355.8401

The Texas Health and Human Services Commission (HHSC) proposes to amend §355.8401, concerning Case Management Reimbursement Methodology.

Background and Justification

Case management services for children and pregnant women are offered through Medicaid, although the Department of State Health Services (DSHS) administers the case management program under its rules in 25 TAC Chapter 27. HHSC, under its authority and responsibility to administer and implement Medicaid reimbursement rates, is proposing to amend §355.8401 to update and clarify the methodology used to determine the Medicaid reimbursement rates for providers of Case Management for Children and Pregnant Women services.

Section-by-Section Summary

The proposed amendment updates the title of the rule from "Case Management Reimbursement Methodology" to "Reimbursement Methodology for Case Management for Children and Pregnant Women" consistent with the current naming convention within the subchapter.

The substance of the rule is generally new and not carried forward from the current §355.8401.

Proposed new subsection (a) identifies the providers that are eligible for reimbursement.

Proposed new subsection (b) limits case management services to one unit of service, or contact, per day per client. Proposed new subsection (b) also names the types of services that can be reimbursed.

Proposed new subsection (c)(1) describes the reimbursement methodology.

Proposed new subsection (c)(2) describes additional rules in Chapter 355 applicable to the reimbursement methodology.

Fiscal Note

Greta Rymal, Deputy Executive Commissioner for Financial Services, has determined that, during the first five years the amendment is in effect, there is no foreseeable fiscal impact to state government or local governments.

Ms. Rymal does not anticipate that there will be an economic cost to persons who are required to comply with the amendment for the first five years the rule will be in effect. There is no anticipated negative impact on local employment.

Small and Micro-business Impact Analysis

HHSC has determined that there will be no adverse economic effect on small or micro-businesses based on the proposal as there is no reduction in revenue or increase in costs to providers as a result of the proposed amendment.

Public Benefit

Pam McDonald, Director of Rate Analysis, has determined that for each of the first five years that the amended rule is in effect, the public is expected to benefit because HHSC will have the accurate and detailed reimbursement methodology for Case Management for Children and Pregnant Women program services in its rule base.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. A "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 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 private real 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 Yvonne Moorad, Senior Rate Analyst of Acute Care Services, Rate Analysis Department, Texas Health and Human Services Commission, P.O. Box 85200, MC-H400, Austin, Texas 78708-5200; by fax to (512) 491-1998; or by e-mail to yvonne.moorad@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register.

Statutory Authority

The amendment is proposed under Texas Government Code §531.033, which provides the Executive Commissioner of HHSC with broad rulemaking authority; Texas Human Resources Code §32.021 and Texas Government Code §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and Texas Government Code §531.021(b), which establishes HHSC as the agency responsible for adopting reasonable rules governing the determination of fees, charges, and rates for medical assistance payments under the Human Resources Code Chapter 32.

The amendment 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.

§355.8401.[ Case Management ] Reimbursement Methodology for Case Management for Children and Pregnant Women .

(a) Qualified providers. Payments are made to qualified providers delivering case management services to Medicaid-eligible individuals who are eligible for Case Management for Children and Pregnant Women according to Department of State Health Services (DSHS) rules at 25 TAC Chapter 27 (relating to Case Management for Children and Pregnant Women).

(b) Unit of service. Case Management for Children and Pregnant Women services are limited to one contact per day per client. Qualified providers are reimbursed based on a prospective and uniform statewide rate for the following types of services:

(1) comprehensive visit;

(2) face-to-face case management visit; and

(3) telephone case management visit.

(c) Rate methodology.

(1) The Health and Human Services Commission determines Case Management for Children and Pregnant Women rates by modeling a rate for similar case management activities and using relevant costs and fees that provide information related to case management services for children and high risk pregnant women. HHSC will utilize the cost and fee survey data compiled as a basis for updating the reimbursement rate. Total reported costs are projected from the historical reporting period to the prospective rate period.

(2) The reimbursement methodology for Case Management for Children and Pregnant Women services is also governed by §355.108 of this chapter (relating to Determination of Inflation Indices) and §355.109 of this chapter (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs).

[ (a) General information. The Health and Human Services Commission (HHSC) will reimburse qualified providers for case management services provided to Medicaid-eligible children and pregnant women. The HHSC determines reimbursement rates at least annually for case management services. These rates are:]

[ (1) uniform throughout the geographic area(s) providing the service; and]

[ (2) cost-related.]

[ (b) Basis for rate analysis.]

[ (1) For the initial reimbursement period, providers are reimbursed based on rates set as a result of modeling other rates for case management services, and cost information provided by the Texas Department of Health.]

[ (2) At some future date, as yet unspecified, reimbursements will be based on cost-based prospective rates.]

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 May 2, 2013.

TRD-201301739

Steve Aragon

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: June 16, 2013

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