Home and Community Based Services (HCBS) | Texas Health and Human Services – Texas Health and Human Services |

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Medicaid home and community-based services provide opportunities for people to receive long-term services and supports in their own home or community, rather than in an institution or isolated setting.
The American Rescue Plan Act (ARPA) of 2021 became law on March 11, 2021. Section 9817 of ARPA provides states a temporary ten (10) percentage point increase to the federal medical assistance percentage (FMAP) for Medicaid HCBS, if certain federal requirements are met. States must use funds equaling the federal funds attributable to the increased FMAP for activities that enhance or strengthen Medicaid HCBS.
HHSC submitted an initial spending plan to the Centers for Medicare and Medicaid Services (CMS) on July 12, 2021.
On January 10, 2022, CMS provided HHSC conditional approval of the spending plan. The approval is conditional upon HHSC complying with federal requirements.  A copy of CMS’s conditional approval can be found here (PDF). HHSC received necessary state budget approvals in March 2022.
States are required to provide updates to CMS about their spending plans and highlight any changes from their original plan on a regular basis. HHSC submitted a spending plan update in track-changes for ease of review and identification of new information. The latest update was sent to CMS on July 18, 2022. Read the update here (PDF).
Sign up to receive updates about the HCBS spending planning. HHSC held a webinar focused on updates to the spending plan and the HCBS ARPA Provider Recruitment and Retention Bonus rate add-on on June 8, 2022.
When another webinar is scheduled, we will post the information here.
Email Medicaid HCBS Rule with questions.
In March 2014, the Centers for Medicare and Medicaid Services (CMS) issued the federal HCBS Settings Rule which added requirements for settings where Medicaid HCBS are provided.
CMS has given states until March 17, 2023 to bring Medicaid programs into compliance with the rule.
The purpose of the HCBS Settings Rule is to ensure people receive Medicaid HCBS in settings that are integrated in the community. A Medicaid HCBS setting must facilitate a person’s choice regarding services and supports and who provides them.
Medicaid HCBS settings must also be integrated in and support full access to the greater community, including opportunities to:
The HCBS Settings Rule applies to the following Texas Medicaid programs and services:
CMS requires states to submit a transition plan describing their planned initiatives and activities to achieve compliance with the federal HCBS settings regulations. The transition plan must include:
Texas submitted an initial STP to CMS in 2014 and has update the plan based on responses from CMS. HHSC submitted the most recent version of the STP to CMS in April 2022. The most recent version of the STP and past STPs are available at the links below.
Statewide Transition Plan – April 2022
Previous versions:
CMS presumes some settings have qualities that are institutional or isolating in nature. CMS requires states to submit evidence demonstrating that these settings are able to overcome the presumption. These settings must go through a heightened scrutiny review by CMS.
CMS presumes that the following types of settings have institutional or isolating qualities:
CMS requires states to identify settings that meet the criteria above and submit to CMS a list of settings that the state believes can overcome the institutional or isolating presumption. The list must include:
HHSC will submit all assisted living facilities participating in the STAR+PLUS HCBS program for heightened scrutiny review. HHSC posted a description of the heightened scrutiny process and an initial list of settings for public comment in October 2021 at Heightened Scrutiny (PDF).
In May 2022, HHSC posted an updated list of settings and a summary of non-compliance issues and remediation activities necessary for ALFs to comply with the HCBS Settings Rule.
An evidence packet must be completed for each assisted living facility to provide evidence that the setting does, or can, comply with requirements of the HCBS Settings Rule. If an ALF is not compliant with any of the requirements of HCBS Settings Rule, the ALF will work with the MCO to develop a remediation plan. All remediation activities identified on the evidence packet remediation plan must be completed by August 31, 2022.
CMS Resources
HHSC Webinars
Please click here for Provider Communications.
Email questions to Medicaid HCBS.
Note: Revised June 24, 2022
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