The Texas Health and Human Services Commission (HHSC) adopts amendments to §355.101, concerning Introduction; §355.102, concerning General Principles of Allowable and Unallowable Costs; §355.103, concerning Specifications for Allowable and Unallowable Costs; §355.105, concerning General Reporting and Documentation Requirements, Methods, and Procedures; §355.106, concerning Basic Objectives and Criteria for Audit and Desk Review of Cost Reports; §355.107, concerning Notification of Exclusions and Adjustments; and §355.110, concerning Informal Reviews and Formal Appeals, in its Reimbursement Rates chapter, without changes to the proposed text as published in the April 22, 2011, issue of the Texas Register (36 TexReg 2551) and will not be republished.

Background and Justification

Sections 355.101 - 355.111 in Subchapter A detail the cost determination process for nursing facilities, intermediate care facilities for persons with mental retardation and community-based programs where HHSC is responsible for calculating recommended reimbursements. HHSC, under its authority and responsibility to administer and implement rates, is updating Subchapter A to: 1) incorporate the School Health and Related Services program; 2) accommodate the utilization of a web-based cost reporting system; 3) formalize certain existing practices; 4) standardize the cost at which a purchase must be depreciated; 5) allow for the reporting of certain costs associated with workers' compensation; and 6) specify the repercussions of submitting an incomplete request for an informal review.

Comments

The 30-day comment period ended May 23, 2011. During this period, HHSC received no comments regarding the proposed amendments to these rules.

The amendments are adopted under the Human Resources Code, §32.021, which provides HHSC with the authority to adopt rules necessary to administer the federal medical assistance (Medicaid) program in Texas; Texas Government Code, §531.033, which authorizes the Executive Commissioner of HHSC to adopt rules necessary to carry out the commission's duties; and the Texas Government Code §531.021(a), which authorizes the Executive Commissioner to adopt rules for the operation and provision of health and human services by the health and human services agencies and to adopt or approve rates of payment required by law to be adopted or approved by a health and human services agency.