The Texas Health and Human Services Commission (HHSC) adopts an amendment to §355.105, concerning General Reporting and Documentation Requirements, Methods, and Procedures, without changes to the proposed text as published in the May 3, 2013, issue of the Texas Register (38 TexReg 2721) and will not be republished.

Background and Justification

HHSC, under its authority and responsibility to administer and implement rates, adopts the amendment to amend this rule to: 1) clarify limitations on reporting related-party compensation on Medicaid cost reports; 2) incorporate changes to reflect person first respectful language; and 3) clarify the references in subsection (a).

HHSC limits the reporting of compensation for owners and related-party administrators and assistant administrators to ensure that only reasonable and necessary costs are included in Texas Medicaid cost reports. In this context, a related party is generally defined as any person or organization related to the provider by blood, marriage, common ownership, or control. Language in §355.105(i) currently indicates that these limitations apply only to related-party salaries, wages, payroll taxes, and benefits. The adopted amendment clarifies that the limitations apply not just to salaries, wages, and benefits, but to all related-party compensation including related-party contracted labor. The adopted amendment also clarifies that the limitations apply not just to direct employees of the provider, but to related-party administrators and assistant administrators who work as contract labor.

In addition, the amendment is adopted to incorporate person first respectful language in compliance with Texas Government Code §392.002.

Comments

The 30-day comment period ended June 2, 2013. During this period, HHSC received no comments regarding the proposed amendment to this rule.

Legal Authority

The amendment is adopted under Texas Government Code §531.033, which authorizes the Executive Commissioner of HHSC to adopt rules necessary to carry out the commission's duties; 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)(2), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.