Revision 24-2; Effective Sept. 16, 2024

Grantees must develop a policy showing how staff determine PHC program client eligibility. The policy must outline the grantee’s procedures for determining program eligibility and who is responsible for eligibility screening.

Grantees must  use the most recent version of  Form 3029, Application for Program Benefits (PDF), when screening applicants for program eligibility.

An alternate eligibility screening tool created by the grantee may be used in place of Form 3029 with prior written approval by the PHC program. To apply for approval, the grantee must contact program staff by email to request an Alternate Eligibility Screening Tool Request form. Grantees will send the request form and a copy of their proposed alternate screening tool to the program mailbox at primaryhealthcare@hhs.texas.gov once completed. The tool must contain, at minimum, all required elements of the Form 3029.

Once a grantee gets approval for the use of an alternate eligibility screening tool, the following requirements will apply:

• Grantees must request approval from the PHC program for any revisions to their eligibility screening tool and include a copy of the revised tool.
• The eligibility screening tool is only approved for the life of the current grant term. If a grantee is awarded funding under a subsequent grant, the grantee must resubmit their eligibility screening tool for review and written approval, even if no changes have been made to the tool since the last written approval.
• Any required changes made to Form 3029 by the PHC program must be incorporated into the grantee-developed alternate screening tool. Grantees will need to submit their grantee-developed alternate screening tool with the incorporated changes within 60 calendar days for re-review and approval.
• The PHC program reserves the right to request additional edits or withdraw its approval of the use of an alternate eligibility screening tool. HHSC program will notify the grantee of the decision in writing and include the date the use of the alternate tool must be discontinued.

The following forms are optional, but may be used to aid in completing the eligibility screening process:

• Form 3049, Employment Verification; and
• Form 3051, Statement of Self-Employment Income.

Grantee may use the optional copay table available in Appendix II, Optional Co-Pay Table Based on Monthly Federal Poverty Level (FPL).

Applicants who served in any branch of the United States Armed Forces, Reserves, or National Guard may be eligible for additional benefits and services and must be referred to the Texas Veterans Portal for more information.

Revision 23-2; Effective Sept. 15, 2023

For a person to receive PHC program services, three criteria must be met:

• Gross family income at or below 200% of the Federal Poverty Level (FPL)
• Texas resident
• Not eligible for other programs or benefits providing the same services

Residency is self-declared. Grantees may require residency verification, but such verification should not jeopardize delivery of services. Grantees must require income verification for countable income, except in cases when submitting the income verification jeopardizes the client's right to confidentiality or imposes a barrier to receipt of services, the grantee must waive this requirement. Reasons for waiving verification of income must be noted in the client record.

Eligibility determinations for PHC can be made by conducting interviews over the phone or in person for new applicants and to re-certify current clients. Phone interviews for eligibility determinations must comply with all eligibility guidelines outlined in program policy.

In lieu of a client’s signature on the application in the Acknowledgment section of Form 3029, Application for Program Benefits (PDF) or on Form 3046, Statement of Applicant’s Rights and Responsibilities, the eligibility staff person must read the statements to the applicant and document that the applicant affirms the statements. The documentation must include the date and time of the applicant’s affirmation and the eligibility staff person’s signature. The client must sign the document at the time of their next visit to the clinic.

Revision 24-2; Effective Sept. 16, 2024

Potential Eligibility and Referral to Other Programs

Screening for other benefit programs must be documented on Form 3029, Application for Program Benefits. The PHC program is the payor of last resort. Applicants must be screened for Medicaid, CHIP, Medicaid for Pregnant Women, CHIP Perinatal, and any other benefit programs. PHC will not reimburse for services provided to clients who are potentially eligible for another funding source and who do not complete the respective eligibility application process. Applicants who do not fully comply with applying for other benefit programs they appear eligible for, are not eligible for PHC and grantees will not be reimbursed for services provided.  

If a client appears eligible for any of these other benefit programs, they must be granted Presumptive Eligibility for PHC while awaiting benefit determination. The grantee must notify the client they must apply for any program for which they appear eligible. The client is responsible for submitting proof of application or a denial letter before the presumptive eligibility period ends. If a client does not appear eligible for any other program, this must be documented on the application.

All Medicaid, CHIP, Medicaid for Pregnant Women, CHIP Perinatal, or other benefit program applications must be submitted promptly following PHC eligibility assessment. If a client was denied Medicaid or CHIP services, the denial letter must be included with the application. Grantees may use the HHSC Your Texas Benefits website to help screen for client eligibility. More information about HHSC benefits can also be obtained by calling 2-1-1.

Household

The household consists of a person living alone, or a group of two or more persons related by birth, marriage, including common law, or adoption, who lives together and are legally responsible for the support of the other person. If an unmarried applicant lives with a partner, only count the partner’s income and children as part of the household group if the applicant and their partner have mutual children together. Also include unborn children.

A child must be under 18 years old to be counted as part of a larger family. Once a child turns  18, they should complete their own program application, listing themselves as the applicant. 

Legal responsibility for support exists between:

• people who are legally married including common-law marriage;
• a legal parent and a minor child, including unborn children; or
• a managing conservator and a minor child. A managing conservator is a person designated by a court to have daily legal responsibility for a child.

Documentation of Family Composition

If family relationships are unclear, request one of the following items:

• Birth certificate
• Baptismal certificate
• School records
• Other documents or proof of family relationship determined valid by the grantee to establish the dependency of the family member upon the client or head of household.

Family members who receive other health care benefits are included in the family count.

Documentation of Residency

To be eligible for PHC services, a person must:

• be physically present within the geographic boundaries of Texas;
• have the intent to remain within the state, whether permanently or for an indefinite period; and
• not claim residency in any other state or country.

If a person is less than 18 years old, their parent or legal guardian must be a resident of Texas and meet the criteria above.

There is no requirement for the length of time a person must live in Texas to establish residency for the purposes of PHC eligibility.

If the grantee requires a client provide proof of residency, the type of proof provided by client should be documented on Form 3029. For documentation of residency, one of the following items may be provided:

• Valid Texas driver license
• Current voter registration
• Rent or utility receipts for one month prior to the month of application
• Motor vehicle registration
• School records
• Medical cards or other similar benefit cards
• Property tax receipt
• Mail addressed to the applicant, their spouse, or children if they live together
• Other documents considered valid by the grantee

If none of the listed items are available, residency may be verified through one of the following:

• Observance of personal effects and living arrangement
• Statements from landlords, neighbors or other reliable sources

If an applicant’s residency is unclear or questionable, explain and document concerns on Form 3029. If a family is otherwise eligible, but residency is in question, the household is entitled to services until residency information is verified.

Applicants do not lose their residency status because of temporary absences from the state. For example, a migrant or seasonal worker who may travel during certain times but maintains a home in Texas and returns to that home after these temporary absences.

Income

All income received must be included. Income is calculated before taxes or pre-tax deductions (gross). Income is reviewed and determined either countable or exempt (based on the source of the income), as defined in Appendix I, Definition of Income. Grantees must have a written PHC income verification policy.

Documentation of income for PHC services must be provided to complete Form 3029. Declarations of unknown will not be accepted as documentation.

The following are examples of documentation that could be included in the grantees’ verification of income policy:

• at least two pay periods that accurately represent their earnings dated within the 60 days before the application processing date; or
• one month’s pay only if paid same gross amount monthly, unless special circumstances are noted on the application.

The pay periods must accurately reflect the applicant’s usual and customary earnings. Proof may include, but is not limited to:

• copy or copies of the most recent paycheck(s) stub or monthly earning statement(s);
• employer’s written verification of gross monthly income or Form 3049, Employment Verification;
• award letters;
• domestic relation printouts of child support payments received;
• statement of support;
• unemployment benefits statement or letter from the Texas Workforce Commission;
• court orders or public decrees to verify support payments;
• notes for cash contributions; and
• other documents or proof of income determined valid by the grantee.

Grantees must require income verification for countable income. In cases when submitting the income verification jeopardizes the client's right to confidentiality or imposes a barrier to receipt of services, the grantee must waive this requirement and document the reason.

Monthly Income Conversions

If income payments are received in lump sums or at longer intervals than monthly, such as seasonal employment, the income is prorated over the time the income is expected to cover. Income received weekly, every two weeks, or twice a month must be converted as follows:

• Weekly income is multiplied by 4.33
• Income received every two weeks is multiplied by 2.17
• Income received twice monthly is multiplied by 2

Calculation of Applicant's Federal Poverty Level (FPL) Percentage

The grantee must determine the household FPL percentage using current U.S. Department of Health and Human Services federal poverty guidelines. The guidelines are subject to change at the beginning of each calendar year.

The steps to determine the household FPL percentage are:

• Determine the household’s total monthly gross income amount.
• Determine the household size.
• Divide the household’s total monthly gross income amount by the monthly poverty guideline based on the household size.
• Multiply by 100.

Income Deductions

Dependent care expenses may be deducted from total income. This expense must be both necessary for employment and incurred by an employed person. Documentation must be provided. Allowable deductions are actual expenses up to:

• $200 per child per month for children under 2;
• $175 per child per month for each dependent 2 or older; and
• $175 per adult with disabilities per month.

Legally obligated child support payments made by a member of the household may also be deducted from the total income. Documentation of payments must be provided. Convert payments made weekly, every two weeks, or twice a month by using one of the conversion factors listed above.

Documenting Special Circumstances

There may be special circumstances where an applicant is unable to provide required documentation for verification purposes. These types of special circumstances should be appropriately documented.

Client Fees and Copays

Grantees may assess a copay for services for PHC clients. If the grantee does assess copays for clients, the grantee must also have a policy that outlines how the copayment amounts are determined, using the following copay guidelines:

• No PHC client shall be denied services based on an inability to pay.
• Clients with a household FPL at or below 100% shall not be charged a copay, as calculated using the U.S. HHS Poverty Guidelines.
• Clients with a household FPL above 100% may be charged a copay of no greater than $30 per visit.
• Grantees must have a written copay policy which clearly defines how copay amounts will be determined.
• Clients who are assessed a copay must be presented a billing statement at the time of service and a copy shall be kept in the client’s record.
• Clients who declare an inability to pay a copay shall not be denied services. Any outstanding balance shall not be turned over to a collection agency or reported delinquent to a credit reporting agency.
• All policies and procedures regarding copay collection must be approved by the grantee’s board of directors.
• Copays must be reported as program income in the Monthly Reimbursement Packet (MRP). The grantee must complete B25 and E25.

Grantees may use the optional copay table available in the Appendix II, Optional Co-Pay Table Based on Monthly Federal Poverty Level.

Other Fees

Do not charge clients administrative fees for items such as processing or transfer of medical records or copies of immunization records. Grantees can bill clients for services outside the scope of PHC allowable services if the service is provided at the client’s request and the client is made aware of their financial responsibility for the charges before services are provided.

Client’s Responsibility for Reporting Changes

A client must report the following changes no later than 30 days after the client is aware of the change:

• income;
• family composition;
• residence;
• current address;
• employment;
• types of medical insurance coverage; or
• receipt of Medicaid, CHIP, CHIP Perinatal, or other third-party coverage benefits.

The client may report changes by mail, phone, in-person, or through someone acting on the person’s behalf. If changes result in the client no longer meeting eligibility criteria, the client’s eligibility will terminate. Upon termination, the grantee must issue Form 3047, Notice of Ineligibility, to the client, including the date of termination.

Continuation of Services

Once awarded grant funds are spent, grantees must continue serving their existing PHC clients through the end of their clients’ determined eligibility periods. Any funding sources other than PHC awarded program funds used to provide PHC services, must be reported as non-HHSC funds on the Monthly Report Form and the quarterly Financial Status Report (FSR), also known as Form 269A.

Additionally, grantees are required to screen potential new clients for program eligibility once awarded grant funds are exhausted. However, if screenings are completed and potential clients are determined eligible, the grantee must provide services to those clients.

Eligibility

Full program eligibility begins on the date the grantee determines an individual or household are eligible for the program and all the following requirements are met:

• all program eligibility requirements are met;
• program application is completed and signed; and
• all verification documents are submitted.

To notify an applicant of eligibility, the grantee must issue

• Form 3012, Notice of Eligibility (PDF), to the client.

Presumptive Eligibility

PHC emphasizes the importance of prevention and early intervention. The goal of PHC is for clients to be part of the health care system and not rely on episodic acute care. An applicant’s medical needs shall be met quickly and appropriately, using available resources in the community.

Presumptive eligibility provides short-term access to health care services when the client screens as potentially eligible for services but lacks verification to achieve full eligibility and presents with an emergent medical need. Grantees are only required to treat emergent medical needs during the presumptive eligibility period. Grantees may establish in policy a minimum of 30 days and up to a maximum of 90 days for the presumptive eligibility period. During this time, clients are expected to produce the necessary verification documents. For clients who submit all required verification documents and are determined to be fully eligible during or at the end of the presumptive period, full eligibility will be granted and the eligibility expiration date will be calculated 12 months from the day presumptive eligibility began.

To notify an applicant of Presumptive Eligibility, the grantee must issue Form 3045, Presumptive Eligibility Notice (PDF) to the client.

The grantee may waive the requirement to submit the eligibility documentation and approve full eligibility on a case-by-case basis, if the grantee determines submitting the documentation will create a barrier to care and no other documentation is available.

Clients are limited to one presumptive eligibility period per two calendar years.

Ineligibility

If an applicant is determined to be ineligible for program services after the screening process is complete, the applicant must be given the Notice of Ineligibility, Form 3047. The applicant must also be informed of their right to appeal the eligibility decision using the process described on the Notice of Ineligibility.

Potential Eligibility and Referral to Other Possible Qualifying Programs

Screening for other benefit programs must be documented in the Application for Program Benefits form.

In general, applicants are not eligible for the PHC program if they are enrolled in another third-party payer, such as private health insurance, Medicaid or Medicare, TRICARE, Workers’ Compensation, Veterans Affairs Benefits, or other federal, state or local public health care coverage that provides the same services. If an applicant is eligible for another program that covers the same services, they may still be eligible for the PHC program.

The grantee must inform the applicant of their possible eligibility for any other program, suggest that they also apply for services from that program, and proceed with the eligibility determination process for PHC. The grantee must document in the applicant’s record that they were informed and referred to the other program.

Grantees may use the Your Texas Benefits website to assist in the screening of client eligibility. More information about HHSC benefits can also be obtained by calling 2-1-1.

Supplemental Benefits

In some cases, applicants receiving benefits from other sources, such as Medicaid or Medicare, may be eligible for partial PHC coverage. This supplemental or wraparound coverage is limited to services provided by PHC but not covered by other sources. Whenever federal, state, private or other benefits are available for payment of clients receiving PHC covered services, no PHC funds shall be used to pay for such care. An example of supplemental benefits would be providing health education services to Medicaid-eligible clients since Medicaid does not provide health education services. The grantee must communicate to the client that supplemental services are of limited scope.

Adjunctive Eligibility

An applicant is considered adjunctively (automatically) eligible for PHC program services at an initial or renewal eligibility screening if the applicant is currently enrolled in one or more of the following:

• Children’s Health Insurance Program (CHIP) Perinatal;
• Medicaid for Pregnant Women;
• Special Supplemental Nutrition Program for Women, Infants and Children (WIC);
• Supplemental Nutrition Assistance Program (SNAP); or
• Healthy Texas Women (HTW) Program.

The applicant must be able to provide proof of active enrollment in the adjunctively eligible program. Acceptable eligibility verification documentation may include:

If the applicant’s current enrollment status cannot be verified during the eligibility screening process, adjunctive eligibility is not granted. The grantee would then determine eligibility according to usual protocols.

Insurance

Applicants with insurance may be eligible for services provided by PHC when the applicant’s confidentiality is a concern or if the applicant’s insurance deductible is 5% or greater than their income. Most insurance deductibles are given as an annual amount. PHC household incomes are figured as a monthly amount. To compare an annual deductible with a monthly income, multiply the monthly income by 12 and then determine 5% of that amount. See the example below for a monthly household income of $1,000:

• Determine the total household’s monthly income.
• Determine the total household’s annual income by multiplying the monthly income by 12 (months).
• Determine 5% of the total annual income by multiplying it by 0.05 (5%).

Another way to make the comparison is to divide the annual insurance deductible into a monthly amount. See the example below for an annual insurance deductible of $6,000 and a monthly household income of $1,000:

• Determine the household’s monthly insurance deductible by dividing the annual deductible by 12 (months).
• Determine 5% of the total monthly household income by multiplying it by 0.05 (5%).

The completed eligibility form must be maintained in the client medical record, indicating the client's poverty level and the copay amount the client will be charged.

Annual Recertification

Annual eligibility determination and recertification is required for all clients who receive PHC services. Client eligibility must be redetermined every 12 months, using the most recent version of Form 3029, Application for Program Benefits. Grantees must have a system in place to track client eligibility and renewal status on an annual basis.