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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.

The planned launch date for STEPS has been moved from January 23, 2026 to February 2, 2026. HHSC is also implementing a phased release plan for STEPS.

The phased release plan will enable STEPS users to gain access to the system and complete required cost report training before HHSC begins collecting the majority of the cost reports.

A general plan for the opening of DPP enrollments, reports, and cost reports is outlined below. Please refer to the STEPS Transition Phased Release Plan (.pdf) for more detailed information, including opening and closing dates for each enrollment and report.

February 2026

HHSC will open the following DPP enrollments, reports, and training modules in February 2026.

• Comprehensive Hospital Increase Reimbursement Program (CHIRP) Enrollment
• Directed Payment Program for Behavioral Health Services (DPP BHS) Enrollment
• Executive Order GA-46 Report
• Medicaid Administrative Claiming (MAC) Early Childhood Intervention (ECI) Report – JS25
• Rural Access to Primary and Preventive Services (RAPPS) Enrollment
• Texas Incentives for Physicians and Professional Services (TIPPS) Enrollment
• Quality Incentive Payment Program (QIPP) Enrollment
• Required Cost Report Training Modules

March 2026

HHSC will open the following cost reports in March 2026.

• 24-Hour Residential Child Care (24RCC) Cost Report
• Single Source Continuum Contractors (SSCC) Cost Report
• Mental Health, Early Childhood Intervention, and Individuals with Developmental Disabilities (MEI) Cost Report
• Ambulance Services Supplemental Payment Program (UC Ambulance) Cost Report
• 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
• State Supported Living Center (SSLC) Cost Report

March/April 2026

HHSC will open the following cost reports no later than April 2026.

• Medicaid Administrative Claiming (MAC) – Mental Health/ Individuals with Intellectual Developmental Disability (MHIDD), Independent School District (ISD), Local Health District (LHD) – OD25
• School and Health and Related Services (SHARS) Cost Report

Opening in Fall of 2026

• Public Health Provider – Charity Care Program (PHP-CCP) Cost Report
• Disproportionate Share Hospitals and Uncompensated Care (DSH/UC) Application
• Hospital Augmented Reimbursement Program (HARP) enrollment

STEPS Resources and Updates

The STEPS webpage is the central location for major announcements and resources. Updates regarding STEPS are posted regularly.

Questions?

HHSC encourages providers to submit additional questions not answered in the FAQ and transition guides through the online questions and feedback portal. These questions will not receive a direct response, but they will help guide future updates.