TO: Medical Care Advisory Committee DATE: February 14, 2013 FROM: Patricia Hervey, Associate Director for Operations Oversight, Health and Human Services Commission Agenda Item No.: 16 SUBJECT: Provisionally Licensed Psychologist Services. Amendments to: Title 1, Part 15, Chapter 354, Subchapter A, Division 19, Psychologists’ Services, §354.1281. BACKGROUND: Initiative Federal Requirement Legislative Requirement Other: HHSC The Texas Health and Human Services Commission (HHSC) proposes to amend §354.1281, concerning psychologists’ services benefits and limitations. The Texas Medicaid program currently covers psychological counseling and services provided by a licensed psychologist or by a licensed psychological associate (LPA) if: the LPA's services are performed under the direct supervision of a licensed psychologist who is in the same office, building, or facility when and where the service is provided and is immediately available to furnish assistance and direction; and the LPA performing the service is an employee of either the licensed psychologist or the legal entity that employs the licensed psychologist. The proposed rule amendment adds provisionally licensed psychologists (PLP) as another type of provider who can perform psychological counseling and services under the direct supervision of a licensed psychologist. Under the rules of the Texas State Board of Examiners of Psychologists (TSBEP), an individual who is a licensed psychologist is an individual who holds a doctoral level license for the independent practice of psychology; a PLP is an individual who holds a doctoral level license to practice under the supervision of a licensed psychologist; and an LPA is an individual who holds a sub-doctoral license to practice psychology under the supervision of a licensed psychologist. Under the current rule, if an individual who is an LPA completes his or her doctoral degree and becomes a PLP, the individual's services are not eligible for Medicaid reimbursement to the licensed psychologist until the LPA becomes a licensed psychologist. Under the existing rule, a Medicaid recipient under the care of an LPA has to find a new provider after the LPA becomes a PLP. Therefore, HHSC proposes to amend the current rule to cover services provided by a PLP under the same conditions as those provided by an LPA. Services provided by the PLP will be reimbursed to the supervising psychologist or legal entity employing the supervising psychologist at fees determined by HHSC. The amendment is also proposed to clarify and update terminology. ISSUES AND ALTERNATIVES: The alternative to the proposed amendment is to not allow licensed psychologist to bill Medicaid for PLP services. STAKEHOLDER INVOLVEMENT: The proposed rule amendment was sent to external stakeholders for review. Various stakeholders who reviewed the proposed rule amendment voiced concerns both in favor of and against the changes. Comments received from stakeholders were reviewed by HHSC staff and taken into consideration. External stakeholders included: Council on Advising and Planning for Preventative Treatment of Mental and Substance Abuse Disability Rights Texas Federation of Texas Psychiatrists Local Authority Network Advisory Committee Mental Health America Texas National Alliance on Mental Illness National Association of Social Workers Texas Chapter Texas Council of Community Centers and LMHA Staff Texas Hospital Association Texas Psychological Association Texas Medical Association Texas Nurses Association Behavioral Health Advocates of Texas Texas Counseling Association Texas Osteopathic Medical Association FISCAL IMPACT: None Yes RULE DEVELOPMENT SCHEDULE: February 14, 2013 February 28, 2013 May 2013 August 2013 September 1, 2013 Present to the Medical Care Advisory Committee Present to Health and Human Services Commission Council Publish proposed rules in Texas Register Publish adopted rules in Texas Register Effective date REQUESTED ACTION: The MCAC recommends approval of the proposed rules for publication. The Council recommends approval of this rule. Information Only TITLE 1 PART 15 CHAPTER 354 SUBCHAPTER A DIVISION 19 RULE § 354.1281 ADMINISTRATION TEXAS HEALTH AND HUMAN SERVICES COMMISSION MEDICAID HEALTH SERVICES PURCHASED HEALTH SERVICES PSYCHOLOGISTS’ SERVICES Benefits and Limitations PROPOSED PREAMBLE The Texas Health and Human Services Commission (HHSC) proposes to amend §354.1281, concerning psychologists’ services benefits and limitations. Background and Justification The Texas Medicaid program currently covers psychological counseling and services provided by a licensed psychologist or by a licensed psychological associate (LPA) if: the LPA's services are performed under the direct supervision of a licensed psychologist who is in the same office, building, or facility when and where the service is provided and is immediately available to furnish assistance and direction; and the LPA performing the service is an employee of either the licensed psychologist or the legal entity that employs the licensed psychologist. The proposed rule amendment adds provisionally licensed psychologists (PLP) as another type of provider who can perform psychological counseling and services under the direct supervision of a licensed psychologist. Under the rules of the Texas State Board of Examiners of Psychologists (TSBEP), an individual who is a licensed psychologist is an individual who holds a doctoral level license for the independent practice of psychology; a PLP is an individual who holds a doctoral level license to practice under the supervision of a licensed psychologist; and an LPA is an individual who holds a sub-doctoral license to practice psychology under the supervision of a licensed psychologist. Under the current rule, if an individual who is an LPA completes his or her doctoral degree and becomes a PLP, the individual's services are not eligible for Medicaid reimbursement to the licensed psychologist until the LPA becomes a licensed psychologist. Under the existing rule, a Medicaid recipient under the care of an LPA has to find a new provider after the LPA becomes a PLP. Therefore, HHSC proposes to amend the current rule to cover services provided by a PLP under the same conditions as those provided by an LPA. Services provided by the PLP will be reimbursed to the supervising psychologist or legal entity employing the supervising psychologist at fees determined by HHSC. The amendment is also proposed to clarify and update terminology. Section-by-Section Summary In subsection (b) (1) and (2), the proposed amendment clarifies that a licensed psychologist and an LPA are licensed by the Texas State Board of Examiners of Psychologist. In subsection (b) (3), the proposed amendment explains the conditions under which the Texas Medicaid program covers services provided by a provisionally licensed psychologist (PLP). Throughout the proposed amendment, the term “Texas Medical Assistance Program” is revised to “Texas Medicaid program” to reflect the program’s more common name. Fiscal Note Greta Rymal, Deputy Executive Commissioner for Financial Services, has determined that during the first five-year period the proposed rule is in effect, there will be no fiscal impact to the state or local governments. There are no anticipated economic costs to persons who are required to comply with the proposed rule as they will not be required to alter their current business practices in response to this proposal. There is no anticipated negative impact on local employment. Small and Micro-business Impact Analysis Ms. Rymal has also determined that there will be no adverse economic effect on small businesses or micro businesses to comply with the proposal, because the amendment will result in neither revenue reductions nor cost increases to providers. Public Benefit Chris Traylor, Chief Deputy Commissioner, has determined that for each year of the first five years the proposal is in effect, the public will benefit from the adoption of the amendment. The anticipated public benefit as a result of enforcing the proposed amended rule will be to allow Medicaid recipients to continue receiving services from the same individual during the interim when the individual transitions from an LPA to a PLP to a licensed psychologist. Regulatory Analysis HHSC has determined that this proposal is not a “major environmental rule” as defined by §2001.0225 of the Texas Government Code. A “major environmental rule” is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure. Takings Impact Assessment HHSC has determined that this proposal does not restrict or limit an owner’s right to his or her private real property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under §2007.043 of the Government Code. Public Comment Written comments on the proposal may be submitted to Peggy Atkins, Senior Policy Analyst, Operations Oversight, Medicaid/CHIP Division, Mail Code H390-91X, Texas Health and Human Services Commission, P. O. Box 85200 Austin Texas, 78708-5200; by fax to (512)-2493707; or by e-mail to peggy.atkins@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register. Public Hearing A public hearing is scheduled for (Date) from (Start Time) to (End Time) (central time) in the (Location and Address). Persons requiring further information, special assistance, or accommodations should contact Leigh Van Kirk at (512) 491-2813. Statutory Authority The amendment is proposed under Texas Government Code §531.033, which provides the Executive Commissioner of HHSC with broad rulemaking authority; and 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. The proposed amendment affects Texas Human Resources Code Chapter 32, and Texas Government Code Chapter 531. No other statutes, articles, or codes are affected by this proposal. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency’s legal authority to adopt. TITLE 1 PART 15 CHAPTER 354 SUBCHAPTER A DIVISION 19 RULE §354.1281 ADMINISTRATION TEXAS HEALTH AND HUMAN SERVICES COMMISSION MEDICAID HEALTH SERVICES PURCHASED HEALTH SERVICES PSYCHOLOGISTS’ SERVICES Benefits and Limitations (a) Subject to the specifications, conditions, requirements, and limitations established by the Texas Health and Human Services Commission (HHSC) or its designee, psychological counseling and services are covered. (b) To qualify for reimbursement the services must be provided by a: (1) Licensed psychologist who is licensed by the Texas State Board of Examiners of Psychologists (TSBEP), if [when the following conditions are met]: (A) The services are within the psychologist's scope of practice, as defined by state law; and (B) The services would be covered by the Texas Medicaid program [Medical Assistance Program] when they are provided by a licensed physician (MD or DO). (2) Licensed psychological associate (LPA) who is licensed by TSBEP, if [when the following conditions are met]: (A) The services are performed under the direct supervision of a licensed psychologist. The supervising psychologist must be in the same office, building, or facility when and where the service is provided and must be immediately available to furnish assistance and direction; and (B) The LPA performing the service must be an employee of either the licensed psychologist or the legal entity that employs the licensed psychologist. (3) Provisionally licensed psychologist (PLP) who is licensed by TSBEP, if: (A) The services are performed under the direct supervision of a licensed psychologist. The supervising psychologist must be in the same office, building or facility when and where the service is provided and must be immediately available to furnish assistance and direction; and (B) The PLP performing the service must be an employee of either the licensed psychologist or the legal entity that employs the licensed psychologist. (c) To be payable, the services must be reasonable and medically necessary as determined by HHSC. (d) Covered services provided by an LPA or a PLP must be billed under the Texas Medicaid program [Medical Assistance Program] provider number of the supervising psychologist or the legal entity employing the supervising psychologist. (e) Licensed psychologists who are employed by or remunerated by a physician, hospital, facility, or other provider may not bill the Texas Medicaid program [Medical Assistance Program] directly for psychologists' services if that billing would result in duplicate payment for the same services. If the services are covered and reimbursable by the program, payment may be made to the physician, hospital, or other provider (if approved for participation in the Texas Medicaid program [Medical Assistance Program]) who employs or reimburses the licensed psychologist. The basis and amount of Medicaid reimbursement depends on the services actually provided, who provided the services, and the reimbursement methodology utilized by the Texas Medicaid program [Medical Assistance Program] as appropriate for the services and provider(s) involved.