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HHSC Publishes Fiscal Year 2025 Cost Reports Primary Entity Contacts List

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HHSC is transitioning to a new web-based software application to collect information from providers for Medicaid and non-Medicaid cost reports, Supplemental and Directed Payment Program (DPP) enrollments, and legislatively directed reports. The new system, the State of Texas Electronic Provider System (STEPS), will update and simplify the cost reporting and directed payment program enrollment processes.

On March 2, 2026, HHSC will begin collecting fiscal year 2025 cost reports.

HHSC has published a list of the identified Primary Entity Contacts (PECs) on the HHSC STEPS Website for each of the requested Medicaid cost reports outlined below.

  • CPC: Community Living Assistance and Support Services - Case Management Agency (CLASS-CMA); Community Living Assistance and Support Services - Direct Service Agency (CLASS-DSA); Primary Home Care (PHC) Cost Report
  • Day Activity Health Services (DAHS) Cost Report
  • Mental Health, Early Childhood Intervention, and Individuals with Developmental Disabilities (MEI) Cost Report
  • UC Ambulance (Ambulance Services Supplemental Payment Program) Cost Report

The PEC is identified based on the entity’s approved primary email address associated with the entity’s NPI in the Texas Medicaid and Healthcare Partnership (TMHP) Provider Enrollment and Management System (PEMS).

The PEC is responsible for assigning Financial Contacts (FCs), assigning Cost Report Preparers, and certifying the cost report, along with other responsibilities. Failure to submit/certify cost reports can lead to financial impacts to providers.

HHSC encourages PECs, FCs, and Cost Report Preparers to acquire STEPS system access as soon as possible.

Updating the Primary Entity Contact (PEC) in the Provider Enrollment and Management System (PEMS)

Medicaid cost reports will not populate in STEPS unless the PEC’s email address in PEMS matches the email address used to register in STEPS.HHSC cannot update a PEC designation on behalf of a provider in PEMS or in STEPS. For instructions on updating the PEC in PEMS, please follow Step 5 on page 10 of the STEPS User Guide.

STEPS Resources and Updates

For questions about STEPS functionality or issues within the application, contact HHSC using one of the following:

Please see the HHSC STEPS webpage for major announcements and resources. Updates regarding STEPS are posted regularly.