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Nursing Facility Liability Insurance Coverage Add-On

House Bill (HB) 154, approved by the 77th Texas legislature, requires the Texas Health and Human Services Commission (HHSC) to ensure that the rate determination rules for nursing facilities "provide for the rate component derived from reported liability insurance costs to be paid only to those homes that purchase liability insurance acceptable to the commission."

In compliance with HB 154, the portion of the general and administrative rate component derived from reported liability insurance costs has been excluded from nursing facility rates effective September 1, 2001. HHSC will distribute the funds withheld from the rates due to HB 154 to facilities that verify acceptable liability insurance coverage.

Effective May 1, 2022, HHSC adopted amendments to Title 1 of the Texas Administrative Code (1 TAC) Section 355.312, concerning Reimbursement Setting Methodology--Liability Insurance Costs. The amendment aims to streamline the payment of liability insurance rate add-ons by replacing the current certification requirements with an annual provider attestation. 

Nursing Facility Liability Insurance Coverage Attestation will now be available during Open Enrollment using the HHSC Open Enrollment Portal.  Open Enrollment typically happens in the month of July. The add-on time period for the current rate year will run from September through August.

The following rate add-ons for liability insurance will be effective September 1, 2014:  
Professional and General (PL/GL): $1.67 per day of service
Professional Only (PL Only): $1.53 per day of service
General Only (GL Only): $0.14 per day of service

These add-on rates are subject to review as the rate year progresses. If the number of contracts with liability insurance changes significantly, the add-on rates could change.

The Liability Insurance Add-on’s can be verified on the following: 

View the Liability Insurance Coverage - Add-On Awarded list (.pdf) (Effective 9/1/2023 -8/31/2024)

Previous Rate Information

Liability Insurance Coverage-Add-On Awarded List   (.pdf) Effective 9/1/22- 8/31/23
Liability Insurance Coverage-Add-On Awarded List  (.pdf)  Effective until 8/31/22
Liability Insurance Coverage-Add-On Awarded List  (.pdf) through 08-01-2022 

Title 1 of the Texas Administrative Code Section 355.312, providers who cancel or fail to renew their liability coverage during a rate year must notify the HHSC Provider Finance Department within two weeks of the effective date of their cancellation or failure to renew.