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HHSC Publishes IL-25-12, Regarding Discontinuation of the Rate Enhancement Program and Rate Increases for NFs

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HHSC will be proposing increased Nursing Facility (NF) rates effective Sept. 1, 2025. This increase is pursuant to the 2026-27 General Appropriations Act, Senate Bill (S.B) 1, 89th Legislature, Regular Session, 2025 (Article II, HHSC, Rider 25).


Effective Sept. 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, contact the HHSC Provider Finance Department, Long-term Services and Supports (LTSS), Center for Information and Training (CIT) at PFD-LTSS@hhs.texas.gov or (737) 867-7817.