TITLE 1. ADMINISTRATION
PART 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION
CHAPTER 351. COORDINATED PLANNING AND DELIVERY OF HEALTH AND HUMAN SERVICES
SUBCHAPTER
B.
DIVISION 1. COMMITTEES
1 TAC §351.853The executive commissioner of the Texas Health and Human Services Commission (HHSC) proposes new §351.853, concerning the Hospital Payment Advisory Committee (HPAC), in Texas Administrative Code (TAC) Title 1, Part 15, Chapter 351, Subchapter B, Advisory Committees, Division 1, Committees.
BACKGROUND AND PURPOSE
The purpose of the proposal is to establish HPAC as a standalone advisory committee under its own TAC section. Historically, HPAC existed as a subcommittee of the Medical Care Advisory Committee (MCAC). HPAC advises the executive commissioner and HHSC on matters related to hospital reimbursements, payment rates, supplemental payment programs, and adjustments for disproportionate share hospitals. In December 2024, the executive commissioner approved the separation of HPAC from MCAC after changes to the federal regulation required separate committees for beneficiaries and providers. Subsequently, HPAC has been functioning as a standalone committee. This proposal increases HPAC membership from the 14-member subcommittee to 15 members for the standalone committee and updates categories to better reflect Texas demographics.
Rural Hospital Advisory Committee (RHAC) is a statutorily required body under Texas Government Code §526.0302. The RHAC advises HHSC on issues relating specifically to rural hospitals. The proposal maintains the current structure of RHAC as a subcommittee of HPAC.
SECTION-BY-SECTION SUMMARY
Proposed new §351.853(a) provides the statutory authority for HPAC and that RHAC will be a subcommiteee of HPAC
Proposed new §351.853(b) describes the purpose of HPAC.
Proposed new §351.853(c) lists tasks performed by HPAC.
Proposed new §351.853(d) provides that a written report is not required.
Proposed new §351.853(e) describes the meeting requirements.
Proposed new §351.853(f) lists the membership composition and appointment terms.
Proposed new §351.853(g) lists the selection of officers and terms.
Proposed new §351.853(h) provides the required training that will be provided by HHSC.
Proposed new §351.853(i) lists the travel reimbursement of members.
Proposed new §351.853(j) provides the abolishment date.
FISCAL NOTE
Trey Wood, Chief Financial and Operations Officer, has determined that for each year of the first five years that the rule will be in effect, enforcing or administering the rule does not have foreseeable implications relating to costs or revenues of state or local governments.
GOVERNMENT GROWTH IMPACT STATEMENT
HHSC has determined that during the first five years that the rule will be in effect:
(1) the proposed rule will not create or eliminate a government program;
(2) implementation of the proposed rule will not affect the number of HHSC employee positions;
(3) implementation of the proposed rule will result in no assumed change in future legislative appropriations;
(4) the proposed rule will not affect fees paid to HHSC;
(5) the proposed rule will not create a new regulation;
(6) the proposed rule will not expand, limit, or repeal existing regulations;
(7) the proposed rule will not change the number of individuals subject to the rule; and
(8) the proposed rule will not affect the state's economy.
SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS
Trey Wood, Chief Financial and Operations Officer, has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities. The rule does not apply to small businesses, micro-businesses, or rural communities.
LOCAL EMPLOYMENT IMPACT
The proposed rule will not affect a local economy.
COSTS TO REGULATED PERSONS
Texas Government Code §2001.0045 does not apply to this rule because the rule does not impose a cost on regulated persons.
PUBLIC BENEFIT AND COSTS
Victoria Grady, Deputy Chief, Finance, has determined that for each year of the first five years the rule is in effect, the establishment of HPAC as a standalone committee, and RHAC as its subcommittee, will benefit the public as the committee will continue to advise HHSC on supporting hospitals in urban and rural locations.
Trey Wood has also determined that for the first five years the rule is in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rule because HPAC currently exists under the MCAC rule and this proposal establishes it as a standalone committee.
TAKINGS IMPACT ASSESSMENT
HHSC has determined that the proposal does not restrict or limit an owner's right to the owner's property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.
PUBLIC COMMENT
Written comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, as well as any applicable data, research, or analysis, may be submitted to Rules Coordination Office, P.O. Box 13247, Mail Code 4102, Austin, Texas 78711-3247, or street address 4601 West Guadalupe Street, Austin, Texas 78751; or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.
To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 26R026" in the subject line.
STATUTORY AUTHORITY
The new section is authorized by Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of services by the health and human services system, Texas Government Code §524.0005, which provides the executive commissioner of HHSC with broad rulemaking authority; Texas Human Resources Code §32.021 and Texas Government Code §532.0051, which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; Texas Government Code §532.0057(a), which establishes HHSC as the agency responsible for adopting reasonable rules governing the determination of fees, charges, and rates for Medicaid payments under Texas Human Resources Code Chapter 32; and Texas Government Code §523.0203, which provides that the executive commissioner of HHSC shall establish and maintain advisory committees and adopt rules governing such advisory committees in compliance with Texas Government Code Chapter 2110.
The new section affects Texas Government Code §§524.0151, 524.0005, 532.0051, 532.0057(a), 523.0203, and Chapter 2110. The new section also affects Texas Human Resources Code Chapter 32.
§351.853.
(a) Statutory authority. The Hospital Payment Advisory Committee (HPAC) is established under Texas Government Code §523.0201 and is subject to §351.801 of this division (relating to Authority and General Provisions). The Rural Hospital Advisory Committee (RHAC) shall be a subcommittee of HPAC as authorized in Texas Government Code §526.0302(a).
(b) Purpose. HPAC advises the executive commissioner and the Texas Health and Human Services Commission (HHSC) on matters related to hospital reimbursements and outpatient hospital payment rates, Medicaid supplemental payment programs for hospitals, and adjustments for disproportionate share hospitals.
(c) Tasks. HPAC performs the following tasks:
(1) advises HHSC on matters related to hospital reimbursements and outpatient hospital payment rates, Medicaid supplemental payment programs for hospitals, and adjustments for disproportionate share hospitals; and
(2) adopts bylaws to guide how HPAC operates.
(d) Reporting requirements. A written HPAC report is not required.
(e) Meetings.
(1) Open meetings. In accordance with statute, HPAC complies with the requirements for open meetings under Texas Government Code Chapter 551 as if it were a governmental body.
(2) Frequency. HPAC will meet quarterly.
(3) Quorum. A majority of all members constitutes a quorum for the purpose of transacting official business.
(f) Membership.
(1) HPAC is composed of 15 members appointed by the executive commissioner.
(A) In selecting voting members to serve on HPAC, HHSC considers the applicants' qualifications, background, interest in serving, and geographic location.
(B) Fifteen voting members represent the following categories:
(i) hospital administrator;
(ii) hospital finance administrator;
(iii) hospital clinical administrator;
(iv) consumers (Medicaid clients or representative);
(v) advocacy groups (healthcare providers or hospital-related interests);
(vi) Medicaid managed care organizations;
(vii) representative (leadership, direct affiliation with or formally represents interests of the specified hospital type) of a:
(I) children's hospital;
(II) behavioral health hospital;
(III) rural hospital;
(IV) urban hospital;
(V) state-owned teaching hospital;
(VI) public hospital;
(VII) private hospital;
(VIII) hospital that is part of a hospital system; and
(IX) hospital that is not part of a hospital system.
(2) Members are appointed for staggered terms so the terms of an equal or almost equal number of members expire on December 31 every even year. Regardless of the term limit, a member serves until his or her replacement is appointed. This ensures there is membership representation to conduct HPAC business.
(A) If a vacancy occurs, the executive commissioner may appoint a person to serve the unexpired portion of that term.
(B) Except as may be necessary to stagger terms, the term of each member is six years. A member may apply to serve a second term.
(g) Officers. HPAC selects a chair and vice chair of HPAC from among its members.
(1) The chair serves until March 1 of each even-numbered year. The vice chair serves until March 1 of each odd-numbered year.
(2) A member may serve as chair or vice chair for up to two terms in a row.
(h) Required training. Each member must complete training on relevant laws and rules, including this section and §351.801 of this division and Texas Government Code Chapters 551, 552, and 2110; the HHS Ethics Policy; the Advisory Committee Member Code of Conduct; and other relevant HHS policies. HHSC will provide the relevant training.
(i) Travel reimbursement. To the extent allowed by the current General Appropriations Act, an HPAC member may be reimbursed for his or her travel to and from meetings if funds are appropriated, available, and the member submits the request for travel reimbursement in accordance with the HHSC Travel Policy.
(j) Abolishment date. HPAC is abolished and this section expires on December 31, 2030, in compliance with Texas Government Code §2110.008.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 10, 2026.
TRD-202603358
Karen Ray
Chief Counsel
Texas Health and Human Services Commission
Earliest possible date of adoption: September 20, 2026
For further information, please call: (512) 730-7475
CHAPTER 353. MEDICAID MANAGED CARE
SUBCHAPTER
M.
The executive commissioner of the Texas Health and Human Services Commission (HHSC) proposes an amendment to §353.1155, concerning the Medically Dependent Children Program.
BACKGROUND AND PURPOSE
The purpose of the proposal is to add diversion slots and clinical criteria to the Medically Dependent Children Program (MDCP). Adding diversion slots allows HHSC to enroll eligible medically fragile children in the MDCP waiver before the child reaches the top of the interest list and without requiring admission to a nursing facility.
The proposed amendment supports HHSC's goal of providing home and community-based services in the most appropriate and cost-effective setting by expanding timely access to waiver services and reducing unnecessary institutionalization.
The proposed amendment does not change MDCP financial or functional eligibility criteria, service array, or service limits. Medicaid Buy-In for Children Program was removed from the rule for consistency with existing eligibility policy. HHSC also updated the rule for formatting, clarity, and consistency.
SECTION-BY-SECTION SUMMARY
The proposed amendment to §353.1155 adds criteria for MDCP as the diversion slot model is intended to strengthen the program's ability to meet its core mission of serving medically fragile children safely in the community. Additionally, edits correct out-of-date Texas Administrative Code citations and update the rule for formatting, clarity, and readability.
FISCAL NOTE
Victoria Grady, Deputy Chief, Finance, has determined that for each year of the first five years that the rule will be in effect, enforcing or administering the rule does not have foreseeable implications relating to costs or revenues of state or local governments.
GOVERNMENT GROWTH IMPACT STATEMENT
HHSC has determined that during the first five years that the rule will be in effect:
(1) the proposed rule will not create or eliminate a government program;
(2) implementation of the proposed rule will not affect the number of HHSC employee positions;
(3) implementation of the proposed rule will result in no assumed change in future legislative appropriations;
(4) the proposed rule will not affect fees paid to HHSC;
(5) the proposed rule will create new regulations;
(6) the proposed rule will not expand, limit or repeal existing regulations;
(7) the proposed rule will not change the number of individuals subject to the rule; and
(8) the proposed rule will not affect the state's economy.
SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS
Victoria Grady has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities because the proposed rule does not require MDCP providers to alter their current business practices or impose new fees.
LOCAL EMPLOYMENT IMPACT
The proposed rule will not affect a local economy.
COSTS TO REGULATED PERSONS
Texas Government Code §2001.0045 does not apply to this rule because the rule does not impose a cost on regulated persons.
PUBLIC BENEFIT AND COSTS
Emily Zalkovsky, Chief Medicaid and CHIP Services Officer, has determined that for each year of the first five years the rule is in effect, the public benefit will be that diversion slots will allow children with serious medical needs to access MDCP services immediately, without having to go through the interest list process or enter a nursing facility. By enabling earlier access to these services, the rule change helps families care for their children at home and may also reduce unnecessary nursing facility stays. Overall, these changes support HHSC's goal to provide services in the least restrictive and most cost-effective setting.
Victoria Grady has also determined that for the first five years the rule is in effect, there are no anticipated economic costs to people who are required to comply with the proposed rule because the proposed rule does not require MDCP providers to alter their current business practices or impose new fees.
TAKINGS IMPACT ASSESSMENT
HHSC has determined that the proposal does not restrict or limit an owner's right to the owner's property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.
PUBLIC COMMENT
Written comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, as well as any applicable data, research, or analysis, may be submitted to Rules Coordination Office, P.O. Box 13247, Mail Code 4102, Austin, Texas 78711-3247, or street address 4601 West Guadalupe Street, Austin, Texas 78751; or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.
To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 26R040" in the subject line.
STATUTORY AUTHORITY
The amendment is authorized by Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of services by the health and human services system; and Texas Human Resources Code §32.021, which provides HHSC with the authority to administer the federal medical assistance program in Texas and to adopt rules and standards for program administration.
The amendment affects Texas Government Code §524.0151 and Texas Human Resources Code §32.021
§353.1155.
(a) In this section, medically fragile means a serious chronic physical condition that results in prolonged dependency on medical care. A person who is medically fragile requires daily skilled nursing intervention and is dependent upon medical devices and technology.
(b) [(a)] An MCO assesses a person's [an individual's] eligibility for MDCP.
(1)
To be eligible for MDCP, a person [an individual] must:
(A) be under 21 years of age;
(B)
live [reside] in Texas;
(C)
meet the medical necessity level of care criteria required for [medical necessity for] nursing facility care admission as determined by HHSC;
(D) have an unmet need for support in the community that can be met through one or more MDCP services;
(E) choose MDCP as an alternative to nursing facility services, as described in 42 CFR §441.302(d);
(F) not be enrolled in one of the following Medicaid HCBS waiver programs approved by CMS:
(i) the Community Living Assistance and Support Services (CLASS) Program;
(ii) the Deaf Blind with Multiple Disabilities (DBMD) Program;
(iii) the Home and Community-based Services (HCS) Program;
(iv) the Texas Home Living (TxHmL) Program; or
(v) the Youth Empowerment Services waiver;
(G) live in:
(i)
the person's [individual's] home; or
(ii) an agency foster home as defined in Texas Human Resource Code, §42.002, (relating to Definitions); and
(H) be determined by HHSC to be financially eligible for Medicaid under:
(i)
Chapter 358 of this title (relating to Medicaid Eligibility for the Elderly and People with Disabilities); or[,]
(ii)
Chapter 360 of this title (relating to Medicaid Buy-In Program)[, or Chapter 361 of this title (relating to Medicaid Buy-In for Children Program)].
(2) A person who meets the eligibility criteria in paragraph (1) of this subsection may be enrolled in MDCP in one of the following ways.
(A) The person reaches the top of the program interest list and HHSC assigns the person an available MDCP waiver slot.
(B) The person asks to enroll in MDCP while living in a nursing facility, is determined eligible for Medicaid nursing facility services, and HHSC assigns the person an available MDCP waiver slot before the person moves to the community.
(C) The person is determined to be too medically fragile to complete a stay in a nursing facility, there is an available diversion slot, and the person meets two or more of the following criteria:
(i) invasive mechanical ventilation (does not include continuous positive airway pressure (CPAP), bilevel positive airway pressure (BIPAP), or average volume-assure pressure support (AVAP));
(ii) functional tracheostomy (active route mechanical ventilation, routine suctioning and tracheostomy care);
(iii) renal dialysis;
(iv) 24-hour per day oxygen dependence;
(v) total nutrition (100% of caloric needs) via enteral tube feeding;
(vi) total parenteral nutrition;
(vii) congenital heart disease with heart failure requiring hospitalization in the last twelve months;
(viii) hospice;
(ix) solid organ or stem cell transplant within the last twelve months;
(x) non-invasive ventilation (includes BIPAP or Adaptive Ventilation Mode, but does not include CPAP) 20 or more hours per day;
(xi) three or more admissions to a medical facility for status epilepticus within the last twelve months; or
(xii) daily seizures with motor involvement requiring the use of at least one of the following interventions each day over 30 calendar days:
(I) rescue medications;
(II) assisted breathing;
(III) oxygen; or
(IV) manual vagus nerve stimulation activation.
(D) An HHSC Utilization Review nurse reviews the clinical information of the person applying for a diversion slot and, if the person described in subparagraph (C) of this paragraph does not meet at least two of the criteria identified in subparagraph (C) of this paragraph, the nurse sends an HHSC Physician Attestation for Diversion Slot form and documentation to an HHSC physician for review.
(E) An HHSC physician reviews the form and documentation described in subparagraph (D) of this paragraph and uses the physician's medical judgment to consider if the person is too medically fragile for an extended nursing facility stay and may be enrolled in MDCP when a diversion slot becomes available even if the person does not meet at least two of the criteria identified in subparagraph (C) of this paragraph.
(3) [(2)] If a person asking for enrollment in MDCP as described in subsection (b)(2)(B) of this section [An individual receiving Medicaid nursing facility services is approved for MDCP if the individual requests services while residing in a nursing facility and meets the eligibility criteria listed in paragraph (1) of this subsection. If an individual] is discharged from a nursing facility into a community setting before being determined eligible for Medicaid nursing facility services and MDCP, HHSC denies the person's [individual is denied immediate] enrollment in MDCP and places the person's name on the program interest list.
(c) [(b)] HHSC maintains a statewide interest list of persons [individuals] interested in receiving services through MDCP.
(1)
A person, the person's medical consenter, or the person's legally authorized representative (LAR) may request that the person's [an individual's] name be added to the MDCP interest list by:
(A) calling HHSC toll-free 1-877-438-5658;
(B) submitting a written request to HHSC; or
(C) generating a referral through the YourTexasBenefits.com, Find Support Services screening and referral tool.
(2)
[If a request is made in accordance with paragraph (1) of this subsection,] HHSC places the person's [adds an individual's] name on [to] the MDCP interest list if:
(A) the person, the person's medical consenter, or the person's LAR makes a request in accordance with paragraph (1) of this subsection; and
(B) [(A)] the person lives in [if the individual is a] Texas. [resident; and]
(3) [(B)] HHSC uses [using] the date HHSC receives the request in accordance with paragraph (1) of this subsection as the MDCP interest list date.
(4) [(3)] For a person [an individual] determined diagnostically or functionally ineligible during the enrollment process for the CLASS Program, DBMD Program, HCS Program, or TxHmL Program:
(A)
if the person's [individual's] name is not on the MDCP interest list, the person, the person's medical consenter, or the person's LAR can ask HHSC to add [at the request of the individual or LAR, HHSC adds] the person's [individual's] name to the MDCP interest list using the [individual's] interest list date for the waiver program for which the person [individual] was determined ineligible as the MDCP interest list date;
(B)
if the person's [individual's] name is on the MDCP interest list and the [individual's] interest list date for the waiver program for which the person [individual] was determined ineligible is an earlier [than the individual's MDCP interest list] date, the person, the person's medical consenter, or the person's LAR can ask [at the request of the individual or LAR,] HHSC to change the person's [changes the individual's] MDCP interest list date to the earlier [individual's] interest list date [for the waiver program for which the individual was determined ineligible]; or
(C)
if the person's [individual's] name is on the MDCP interest list and the [individual's] MDCP interest list date is earlier than the [individual's] interest list date for the waiver program for which the person [individual] was determined ineligible, HHSC does not change the person's [individual's] MDCP interest list date.
(5) [(4)] A person [This paragraph applies to an individual who is] enrolled in MDCP who is found ineligible for MDCP [and,] because the person [individual] does not meet the medical necessity level of care criteria required [for medical necessity] for nursing facility care admission, is allowed to make a one-time request, or the person's medical consenter or the person's LAR is allowed to make a one-time request, for the person's name to be placed in the first position on the MDCP interest list. [determined ineligible for MDCP after November 30, 2019. The individual or the individual's LAR may request one time that HHSC add the individual's name to the first position on the MDCP interest list.]
(6) [(5)] A person [This paragraph applies to an individual who is] enrolled in MDCP who is found ineligible for MDCP [and,] because the person [individual] does not meet the medical necessity level of care criteria required [for medical necessity] for nursing facility care admission or the requirement to be under 21 years of age, is allowed to request, or the person's medical consenter or the person's LAR is allowed to request, for the person's [determined ineligible for MDCP after November 30, 2019. The individual or the individual's LAR may request that HHSC add the individual's] name to be placed on the interest list for any of the following programs or change the person's [individual's] interest list date for any of the following programs in accordance with:
(A)
26 [40] TAC §259.53 [§45.202] (relating to CLASS Interest List) for the CLASS Program;
(B)
26 [40] TAC §260.53 [§42.202] (relating to DBMD Interest List) for the DBMD Program;
(C)
26 [40] TAC §262.102 [§9.157] (relating to TxHmL [HCS] Interest List) for the TxHmL [HCS] Program; and
(D)
26 [40] TAC §263.103 [§9.566] (relating to HCS [TxHmL] Interest List) for the HCS [TxHmL] Program.
(7) [(6)] HHSC removes a person's [an individual's] name from the MDCP interest list if:
(A)
the person [individual] is deceased;
(B)
the person [individual] is assessed for MDCP, is found not eligible for the program, [and determined to be ineligible] and has had a chance for [an opportunity to exercise the individual's right to] a fair hearing, as described in Chapter 357 of this title (relating to Hearings);
(C)
the person [individual], the person's medical consenter, or the person's LAR requests in writing that HHSC remove the person's name [the individual's name be removed] from the interest list; or
(D)
the person [individual] moves out of Texas, except if the person [unless the individual] is a military family member living outside of Texas as described in Texas Government Code §526.0602:
(i) while the military member is on active duty; or
(ii) for less than one year after the former military member's active duty ends.
(8) [(7)] A person whose name is removed from the MDCP interest list [An individual assessed for MCDP and determined to be ineligible,] as described in paragraph (7)(B) [(6)(B)] of this subsection, or the person's medical consenter or the person's LAR, may request that HHSC place the person's [to have the individual's] name on [added to] the MDCP interest list in accordance with [as described in] paragraph (1) of this subsection.
(d) [(c)] An MCO develops a person-centered individual service plan (ISP) for each person [member] in MDCP, and all applicable documentation, as described in the STAR Kids Handbook and the Uniform Managed Care Manual (UMCM).
(1) An ISP must:
(A) include services described in the waiver approved by CMS;
(B)
include services necessary to protect a person's [member's] health and welfare in the community;
(C)
include services that supplement rather than supplant the person's [member's] natural supports and other non-Medicaid supports and services for which the person [member] may be eligible;
(D)
include services designed to prevent the person's [member's] admission to an institution;
(E)
include the most appropriate type and amount of services to meet the person's [member's] needs in the community;
(F)
be reviewed and revised if the person's [member's] needs or natural supports change or at the request of the person, the person's medical consenter, or the person's [member or] LAR; and
(G) be cost effective.
(2)
If a person's [member's] ISP exceeds 50 percent of the cost of the person's [member's] level of care in a nursing facility to safely serve the person's [member's] needs in the community, HHSC must review the circumstances and, when approved, provide funds through general revenue.
(e) [(d)] An MCO is responsible for conducting a reassessment and developing an ISP for each person's [member's] continued eligibility for MDCP, in accordance with the policies and procedures outlined in the STAR Kids Handbook, UMCM, or materials designated by HHSC and in accordance with the timeframes outlined in the MCO's contract.
(f) [(e)] An MCO is responsible for authorizing a provider of a person's [member's] choice to deliver services outlined in the person's [member's] ISP.
(g) [(f)] A person [member] participating in MDCP has the same rights and responsibilities as any person [member] enrolled in managed care, as described in Subchapter C of this chapter (relating to Member Bill of Rights and Responsibilities), including the right to appeal a decision made by HHSC or an MCO and the right to a fair hearing, as described in Chapter 357 of this title.
(h) [(g)] HHSC conducts utilization reviews of MCOs providing MDCP services.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 10, 2026.
TRD-202603359
Karen Ray
Chief Counsel
Texas Health and Human Services Commission
Earliest possible date of adoption: September 20, 2026
For further information, please call: (512) 438-2910