Status of HCS Rates as of Sept 13th, 2019:

Sounds like the week of Sept. 16th, HHSC will schedule to meet with the three provider organizations. HHSC will contact these organizations to discuss in greater detail the concerns with the proposed HCS rates?
Notice to HCS Providers
Re: Delay in Adoption of the HCS Rates: Though previously told HHSC would issue a notice informing HCS providers about the delay in approving/finalizing the HCS rates, HHSC has now decided not to post the notice.
Status of  HCS Rates as of August 30th:  HHSC will issue a bulletin informing stakeholders that the HCS rates are under further review and until the review is completed the current rates will remain in effect.   The review (which includes discussions with the three IDD provider organizations) should be completed before the end of September. 
I. Status of HCS Rates: As of July 17th, 2019-Based on the rate packet issued yesterday it appears HHSC did not accept all of the recommendations PPAT, the Texas Council and PACSTX offered during meetings with HHSC on June 10th and June 14.
As recommended to HHSC, there are no reductions to rates HHSC contends are needed to achieve a ‘fully funded’ rate and no increases (to achieve a ‘fully funded’ rate’) to service rates not widely utilized or in which changes to the Billing Guidelines would help cover their costs. Examples of HHSC’s acceptance of the above stakeholder recommendations include the following:
  • No proposed reductions to the Host Home rates.
  • No proposed increases to therapy rates.
  • No proposed reductions to the Residential Service rates for LONs 1, 5 and 8 (service rates, however, it is believed that it should be increased to be consistent with the intent of Rider 44).
  • No proposed reduction to the Day Habilitation LON 9 rate (another service rate that many believe should be increased).
However some of the stakeholder recommendations related to the following service rates were not accepted as hoped, but HHSC proposed the following:
  • Increases to only two of the five Residential (3 and 4 persons homes) LON service rates; i.e., LONs 6 and 9.  [According to HHSC, to achieve a fully funded rate, the current rates for LONs 1, 5 and 8 should be reduced.]  Yikes!
  • Increases to only three of the five Day Habilitation LON service rates; i.e., LONs 1, 5, and 8 [According to HHSC, to achieve a fully funded rate, the current LON 9 rate should be reduced.  Interestingly, however, this same HHSC data indicates the LON 6 DH rate should be increased.]  Strange.

Effective September 1, 2019

PROPOSED RATES:                                                                                                                                                                  HHSC proposes to increase the payment rates for the HCS Supervised Living / Residential Support Services, Day Habilitation, Supported Home Living Transportation, Community First Choice (CFC) Supported Home Living, and CFC Consumer Directed Services Supported Home Living in accordance with the 2020-21 General Appropriations Act, 86th Legislature, Regular Session, 2019 (Article II, HHSC, Rider 44).
The proposed payment rates were calculated in accordance with 1 TAC Section 355.723, which addresses the reimbursement methodology for the HCS program.  See HCS rates packet proposal below for Sept 1st, 2019.  Click on link to HCS rates document. 


Please contact the Rate Analysis Department’s Customer Information Center at (512) 424-6637 or by email at should you have any questions regarding the information in this document.