Texas § HR.32.028 - FEES, CHARGES, AND RATES

Full text of Texas The Texas Constitution § HR.32.028 — FEES, CHARGES, AND RATES, with citation guidance and answers to common questions.

§ HR.32.028. FEES, CHARGES, AND RATES

FEES, CHARGES, AND RATES. (a) The executive commissioner shall adopt reasonable rules and standards governing the determination of fees, charges, and rates for medical assistance payments. (b) The fee, charge, or rate for a professional service is the usual and customary fee, charge, or rate that prevails in the community. (c) The fee, charge, or rate for other medical assistance: (1) is the usual and customary fee, charge, or rate that prevails in the community unless the payment is limited by state or federal law; and (2) excludes any fee, charge, or rate offered as part of a monthly fee-based membership discount program. (d) The executive commissioner in the adoption of reasonable rules and standards governing the determination of rates paid for inpatient hospital services on a prospective payment basis shall: (1) assure that the payment rates are reasonable and adequate to meet the costs incurred by the hospital in rendering services to Medicaid recipients; (2) assure that the prospective payment methodology for hospital services sets the hospital-specific standardized amount at a minimum level of $1,600; and (3) assure that the adjustment in payment rates for hospital services furnished by disproportionate share hospitals takes into account the essential role of rural hospitals in providing access to hospital services to medically indigent persons in rural areas of the state. (e) The executive commissioner in the adoption of reasonable rules and standards governing the determination of rates paid for services provided by a federally qualified health center, as defined by 42 U.S.C. Section 1396d(l)(2)(B), shall assure that a center is reimbursed for 100 percent of reasonable costs incurred by the center in rendering services to Medicaid recipients. (f) The executive commissioner in the adoption of reasonable rules and standards governing the determination of rates paid for services provided by a rural health clinic, as defined by 42 U.S.C. Section 1396d(l)(1), shall assure that a clinic is reimbursed for 100 percent of reasonable costs incurred by the clinic in rendering services to Medicaid recipients. (g) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1135 (S.B. 457 ), Sec. 7, eff. September 1, 2025. (h) The executive commissioner shall ensure that the rules governing the determination of rates paid for nursing facility services provide for the rate component derived from reported liability insurance costs to be paid only to those facilities that purchase liability insurance acceptable to the commission. (i) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1135 (S.B. 457 ), Sec. 7, eff. September 1, 2025. (j) The executive commissioner shall adopt rules governing the determination of the amount of reimbursement or credit for restocking drugs under Section 562.1085 , Occupations Code, that recognize the costs of processing the drugs, including the cost of: (1) reporting the drug's prescription number and date of original issue; (2) verifying whether the drug's expiration date or the drug's recommended shelf life exceeds 120 days; (3) determining the source of payment; and (4) preparing credit records. (k) The commission shall provide an electronic system for the issuance of credit for returned drugs that complies with the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, as amended. To ensure a cost-effective system, only drugs for which the credit exceeds the cost of the restocking fee by at least 100 percent are eligible for credit. (l) The executive commissioner shall establish a task force to develop the rules necessary to implement Subsections (j) and (k). The task force must include representatives of nursing facilities and pharmacists. (m) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1135 (S.B. 457 ), Sec. 7, eff. September 1, 2025. (n) The executive commissioner shall ensure that rules governing the determination of rates paid for nursing facility services provide for the reporting of all revenue and costs, without regard to whether a cost is an allowable cost for reimbursement under the medical assistance program, except: (1) as provided by Subsection (h); and (2) a penalty imposed under this chapter or Chapter 242 , Health and Safety Code. Acts 1979, 66th Leg., p. 2351, ch. 842, art. 1, Sec. 1, eff. Sept. 1, 1979. Amended by Acts 1989, 71st Leg., ch. 1219, Sec. 2, eff. Sept. 1, 1989; Acts 1999, 76th Leg., ch. 1411, Sec. 1.16, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 974, Sec. 31, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1284, Sec. 10.01, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 198, Sec. 2.102(a), eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 321, Sec. 3, eff. June 18, 2003. Amended by: Acts 2005, 79th Leg., Ch. 667 (S.B. 48 ), Sec. 2, eff. September 1, 2005. Acts 2015, 84th Leg., R.S., Ch. 1 (S.B. 219 ), Sec. 4.096, eff. April 2, 2015. Acts 2025, 89th Leg., R.S., Ch. 404 (H.B. 2402 ), Sec. 1, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 1135 (S.B. 457 ), Sec. 7, eff. September 1, 2025.

Source: official Texas text · Last verified 2026-08-27

Frequently Asked Questions About Texas § HR.32.028

What does The Texas Constitution § HR.32.028 cover?

Section HR.32.028 ("FEES, CHARGES, AND RATES") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Texas § HR.32.028?

A common citation format is "The Texas Constitution § HR.32.028" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Texas law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.

How does Texas § HR.32.028 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Texas.