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TITLE 1ADMINISTRATION
PART 15TEXAS HEALTH AND HUMAN SERVICES COMMISSION
CHAPTER 355REIMBURSEMENT RATES
SUBCHAPTER CREIMBURSEMENT METHODOLOGY FOR NURSING FACILITIES
RULE §355.312Reimbursement Setting Methodology--Liability Insurance Costs

  (5) The provider must attest that it has not obtained insurance from an insurer or person engaged in unauthorized insurance as set forth in Chapter 101 of the Texas Insurance Code, Unauthorized Insurance.

(g) Failure to maintain insurance coverage. It is the provider's responsibility to notify the HHSC Provider Finance Department of any changes to liability insurance coverage during a rate year for which liability insurance rate add-ons are being paid, including cancellation of, or failure to renew or to maintain coverage, within 15 calendar days of the effective date of the change. Failure to notify HHSC Provider Finance Department of cancellation of or failure to renew or maintain coverage could constitute Medicaid fraud and the rate add-on amounts paid for a period during which liability insurance is not maintained will be subject to recoupment under subsection (j) of this section.

(h) New provider contracts. For the purposes of this section, a new provider contract is a contract with an effective date on or after the first day of the open enrollment period for that rate year. To receive the liability insurance add-on rates, a provider with a new provider contract must send a written request to complete the attestation of agreement in subsection (f) of this section to the HHSC Provider Finance Department. The attestation of agreement must be completed according to instructions, signed by an authorized agent of the provider's contract, and received by the HHSC Provider Finance Department within 30 days of the date HHSC sends notification to the provider that the attestation of agreement must be completed. If the 30th day is on a weekend day, state holiday, or national holiday, the HHSC Provider Finance Department must receive the attestation by the next business day. A provider who fails to submit an acceptable attestation of agreement in accordance with this section will not receive the add-on rates during the rate year.

(i) Change of ownership. Payment of liability insurance add-on rate confers to the new owner as defined in 26 TAC §554.2308 (relating to Change of Ownership) when there is a change of ownership. If the change of ownership occurs during an open enrollment period as defined in subsection (b) of this section, then the owner recognized by HHSC, or its designee, may request to modify the enrollment status of the facility by the last day of the enrollment period, in accordance with subsection (e) of this section.

(j) Recoupment. HHSC will recoup add-on rates paid to a provider under the following circumstances.

  (1) It is the responsibility of the provider to ensure that liability insurance is authorized. Liability insurance payments will be recouped if made on insurance that is later determined by TDI to be unauthorized insurance under Chapter 101, Texas Insurance Code. The liability insurance payments that were recouped will be returned to the provider if the determination by TDI that the insurance is unauthorized is successfully appealed with TDI and the insurance is determined to be authorized.

  (2) It is the responsibility of the provider to ensure that liability insurance coverage is maintained during a rate year for which liability insurance rate add-ons are paid. Failure to maintain coverage will result in recoupment of funds for any period in which add-ons were paid and liability insurance coverage was not maintained.

  (3) It is the responsibility of the provider to ensure that its attestation of liability insurance coverage is accurate. False attestations will result in recoupment of funds for the rate year following the open enrollment in which the false attestation was made.


Source Note: The provisions of this §355.312 adopted to be effective December 1, 2001, 26 TexReg 9565; amended to be effective November 1, 2003, 28 TexReg 8310; amended to be effective May 1, 2005, 30 TexReg 2383; amended to be effective October 28, 2007, 32 TexReg 7469; amended to be effective May 1, 2022, 47 TexReg 2507

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