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Start a business · IDD waiver provider · Texas

How to start an IDD waiver provider in Texas

Texas requires a HCS / Texas Home Living (TxHmL) program provider contract (provisional, then certified by HHSC) from Texas Health and Human Services Commission (HHSC) - Contract Administration and Provider Monitoring; HHSC Long-term Care Regulation certifies program providers to operate an IDD waiver provider.

Verified Oct 6, 2026Sources: state agencies, CMS and OIG

License required
YesHCS / Texas Home Living (TxHmL) program provider contract (provisional, then certified by HHSC)
Application fee
—
Processing time
—
In-home and community living supports (IDD)
$18.47per hour
Organizations in the state
2,879NPPES, Sep 13, 2026
On this page
Licensing

Texas idd waiver provider license

Texas requires a HCS / Texas Home Living (TxHmL) program provider contract (provisional, then certified by HHSC) from Texas Health and Human Services Commission (HHSC) - Contract Administration and Provider Monitoring; HHSC Long-term Care Regulation certifies program providers to operate an IDD waiver provider.

License required
Yes
License
HCS / Texas Home Living (TxHmL) program provider contract (provisional, then certified by HHSC)
Survey and inspection
HHSC conducts certification surveys of HCS/TxHmL program providers (initial certification, recertification and follow-up).
Regulation
26 TAC Chapter 565 (HCS and TxHmL Program Certification Standards)
How to apply

Steps to get licensed in Texas

In order, as the licensing agency describes the process.

  1. Enroll as a Texas Medicaid provider through the TMHP Provider Enrollment and Management System (PEMS)
  2. Complete the Provider Applicant Training (PAT) on the HHS Learning Portal and pass the exam with 85% or higher
  3. Submit Form 5873 (Waiver and Community-based Programs and Services) with the PAT certificate to HHSC by mail, email or fax
  4. Receive a provisional contract through HHSC's noncompetitive open enrollment
  5. Pass HHSC's initial certification survey under the HCS/TxHmL certification standards
Staffing

Staffing and training requirements

Training
  • Provider Applicant Training (PAT) with a passing exam score of at least 85%
Medicaid

Enrolling as a Texas Medicaid provider

Program
Texas Medicaid and CHIP (Texas Health and Human Services Commission, HHSC)
Fiscal agent
Texas Medicaid & Healthcare Partnership (TMHP), the claims administrator for HHSC
Application fee
Under the ACA, institutional providers owe an application fee on initial applications, new practice locations, revalidation and re-enrollment. PEMS says at the end of the application whether a fee is due, and the application cannot be processed without it. Proof of a fee paid to Medicare or another state must be submitted with the application. The amount changes each calendar year. Under the federal rule (42 CFR 455.460), institutional providers pay the CMS application fee when they first enroll, re-enroll or revalidate. The fee is $750 for calendar year 2026. Individual physicians and non-physician practitioners do not pay it. A fee already paid to Medicare or to another state's Medicaid program counts.
Fingerprinting
Under federal rules (42 CFR 455.434 and 455.450), the state places provider types in 'limited', 'moderate' or 'high' risk levels. High-risk providers, and anyone who owns 5% or more of one, must submit fingerprints for a criminal background check. The TMHP provider manual section we reviewed does not list a separate state fingerprint process.
Site visit
Under federal rule (42 CFR 455.432), the state must visit moderate- and high-risk providers before and after enrollment. Every enrolled provider must allow unannounced on-site inspections. TMHP's manual notes that moderate- and high-risk providers cannot bill for a new practice location until it is approved and added to the enrollment record.
Revalidation
Revalidation is due by the end of the enrollment period, called the 'revalidation due date'. Most providers have a five-year period, but some get shorter periods based on risk or other factors. Revalidation is filed online in PEMS only, opens up to 180 days before the due date, and repeats provider screening. It is not complete until every deficiency is resolved. If the period ends first, TMHP automatically disenrolls the provider. Group administrators can revalidate for their performing providers.

Full Texas Medicaid enrollment guide →

Certificate of need

Does Texas require a certificate of need?

CON program
No

Texas certificate of need details →

EVV

Electronic visit verification in Texas

Model
hybrid
State vendor
HHAeXchange (since 2023-10-01)
Services in scope
  • personal care
  • home health
Alternate EVV allowed
Yes

Texas EVV requirements →

Labor

Texas wage floor

State minimum wage
$7.25 an hour
Effective
2009-07-24
Scheduled increases
No scheduled change found in the official sources reviewed.
HCBS 80/20 rule
Federal baseline: 42 CFR 441.302(k) requires the state to show that each provider spends at least 80% of Medicaid payments for homemaker, home health aide and personal care services under 1915(c) waivers on direct care worker pay and benefits. Compliance starts 2030-07-09 (for managed care, the first rating period starting on or after that date); annual payment-adequacy reporting under 441.311(e) starts 2028-07-09. A state may set a lower share for state-defined small providers and exempt providers facing hardship, each only through a public notice-and-comment process. The eCFR text has not changed since 2024-07-09. No state-published 80/20 implementation step (small-provider criteria, hardship exemption or reporting guidance) was found for this state in the official sources reviewed.
Market

Texas market size

Counts from federal public files: NPPES (active organization NPIs), CMS Care Compare and CMS Medicaid enrollment.

Intellectual/developmental disability residential facilities — active organization NPIs (NPPES)
2,879 (as of Sep 13, 2026)
Total Medicaid and CHIP enrollment (latest reported month)
3,915,559 (as of Jun 1, 2026)
Rates

What Texas Medicaid pays

Intellectual & developmental disabilities: published Texas fee-for-service rates, each linked to its source.

ServiceCodeTexas ratePer hourRank
In-home and community living supports (IDD)Agency providerG1108$18.47per hour$18.4726 of 29
Community integration / community access (IDD)Agency providerM1105$16.80per hour$16.8019 of 22
Day habilitation / day program (IDD)Agency providerM0988$10.98per hour$10.9830 of 32
Prevocational servicesAgency providerS0107$18.27per hour$18.2716 of 28
Residential habilitation / group home supportsAgency providerM0169$194.31per day—26 of 31

All Texas IDD / waiver Medicaid rates, ranked →

Waivers

Texas HCBS waivers

Medicaid home and community-based services programs that may pay for this service.

  • TX Community Living Assistance & Support Services (CLASS) Waiver (1915(c))
  • TX Deaf Blind with Multiple Disabilities Waiver (1915(c))
  • TX Home and Community-Based Services (HCS) Program Waiver (1915(c))
  • TX Home Living Program Waiver (1915(c))
  • TX Medically Dependent Children Program (MDCP) Waiver (1915(c))
  • Texas Healthcare Transformation and Quality Improvement Program (1115)
  • TX Youth Empowerment Services (YES) Waiver (1915(c))

Texas waivers and waiting lists →

FAQ

Frequently asked questions

Do you need a license to start an IDD waiver provider in Texas?

Texas requires a HCS / Texas Home Living (TxHmL) program provider contract (provisional, then certified by HHSC) from Texas Health and Human Services Commission (HHSC) - Contract Administration and Provider Monitoring; HHSC Long-term Care Regulation certifies program providers to operate an IDD waiver provider.

Does Texas require a certificate of need for an IDD waiver provider?

No. Texas has no certificate of need program.

How do you become a Medicaid provider in Texas?

Enroll through Provider Enrollment and Management System (PEMS), run by TMHP (https://www.tmhp.com/topics/provider-enrollment), run by Texas Medicaid & Healthcare Partnership (TMHP), the claims administrator for HHSC.

What does Texas Medicaid pay a IDD waiver provider?

Texas Medicaid pays $18.47 per hour for in-home and community living supports (idd), effective Sep 1, 2025, ranking 26 of 29 states.