1. (a) Except as otherwise specified in subsections (b), (d) and (e) of this section, if the action is other than a denial of Medicaid or program eligibility or a denial of a prior authorization request and a request for hearing is received before the date of action, the action will not be taken and services will be continued until a final decision is rendered following a fair hearing.

2. (b) The operating agency or its designee may terminate or reduce services before a hearing decision is rendered if:

   1. (1) it is determined at the fair hearing that the sole issue is one of state or federal law or policy; and
   2. (2) the operating agency or its designee informs the individual in writing of its intent to reduce or terminate services pending the hearing decision at least five days before the termination or reduction would be effective.
3. (c) The operating agency or its designee may recover or recoup the cost of any services provided to the individual to the extent that the services were furnished solely by reason of this section if the fair hearing decision supports the operating agency's or designee's action.
4. (d) If notice is mailed under §357.5(b) of this title (relating to Notice) and the operating agency or its designee receives the individual's request for a hearing within ten days of the mailing of the notice, and the operating agency or its designee determines that the action resulted from something other than the application of federal or state law or policy, the operating agency or its designee will reinstate and continue an individual's services until a hearing decision is rendered.
5. (e) The operating agency or its designee has no obligation to begin services requiring prior authorization pending a final decision.

Source Note:The provisions of this §357.7 adopted to be effective March 31, 1999, 24 TexReg 2293.