The Health and Human Services Commission (HHSC) will be proposing increased Nursing Facility rates, effective September 1, 2025. This increase is pursuant to the 2026-27 General Appropriations Act, Senate Bill 1, 89th Legislature, Regular Session, 2025 (Article II, HHSC, Rider 25).
Furthermore, effective September 1, 2025, HHSC will discontinue the Direct Care Staff Rate Enhancement Program and the Direct Care Spending Requirement and establish an annual Patient Care Expense Ratio. This change is pursuant to S.B. 457, 89th Legislature, Regular Session, 2025.
HHSC has published Information Letter (IL) 2025-12, Discontinuation of the Rate Enhancement Program and Rate Increases for Nursing Facilities, effective Sept. 1, 2025. Review the IL for more information.
If you have further questions regarding the information letter, contact the HHSC Provider Finance Department, Long-term Services and Supports (LTSS), Center for Information and Training at PFD-LTSS@hhs.texas.gov or (737) 867-7817.
Providers are encouraged to share this information with their staff. If you have any questions about this notice, please email Provider Relations at ProviderRelations@cfhp.com or call 210-358-6030. You can also contact your Provider Relations Representative directly.
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