Health and Human Services Commission

PUBLIC NOTICE:

Clarification of Proposed Medicaid Payment Reductions
for Inpatient Hospital Services



The Texas Health and Human Services Commission (HHSC) conducted a public hearing on August 18, 2010, to receive public comment regarding a proposed adjustment to inpatient acute care hospital reimbursement rates.  HHSC proposed two updates to the rates related to a no-cost rebasing initiative as well as a one percent reduction to the rebased rates.  As a result of comments received, HHSC will delay implementation of the SDAs that were scheduled to be implemented September 1, 2010.  However, the one percent reduction will still apply to the rates that are in effect on August 31, 2010.  The one percent reduction will be effective September 1, 2010.

The Legislative Budget Board (LBB) and the Governor's Office informed HHSC in a letter dated May 17, 2010, of their revision to the Spending Reduction Plan for the 2010-11 Biennium submitted by HHSC in response to the Jan. 15, 2010 letter from the Governor, Lieutenant Governor and Speaker requesting a spending reduction proposal.  In response to this direction, HHSC proposes to adjust payments for inpatient hospital services.  The result of this revision is that the payment rates for inpatient hospital services reimbursed under DRG prospective payment system will be reduced by one percent effective September 1, 2010, consistent with the May 17, 2010 direction from the LBB and the Governor’s Office.

The payment rates will be reduced by one percent in accordance with 1 Texas Administrative Code §355.201, which allows the Commission to adjust fees, rates, and charges paid for medical assistance to stay within the limits of appropriated funds.

Written comments regarding the rate adjustment may be submitted by U.S. mail, overnight mail, special delivery mail, hand delivery, fax or e-mail:

U.S. Mail
Attention:  Rate Analysis
HHSC Rate Analysis, Mail Code H-400
P.O. Box 85200
Austin, Texas 78708-5200

Overnight mail, special delivery mail or hand delivery
Attention:  Rate Analysis
HHSC Rate Analysis, Mail Code H-400
Braker Center, Building H
11209 Metric Boulevard
Austin, Texas 78758-4021
Phone number for package delivery:  512-491-1445

Fax
Attention:  Rate Analysis at 512-491-1998

E-mail
Esther.Brown@hhsc.state.tx.us