Texas Raises Its Medical Transportation Program Mileage Rate to 73 Cents for Rides From January 1, 2026

On July 29, 2026, the Texas Medicaid & Healthcare Partnership (TMHP), the state’s Medicaid claims administrator, posted a new Medical Transportation Program (MTP) mileage rate for rides on or after January 1, 2026. S0215, the per-mile rate for people who drive themselves, family, or friends to care, rose from $0.70 to $0.73. TMHP will reprocess affected claims. Demand response companies bill T2003 per trip, which this notice leaves unchanged.

What changed

Item	Detail
Announced	July 29, 2026, in a TMHP notice
Where it came from	The Texas Health and Human Services Commission (HHSC) biennial fee review of MTP mileage, presented at a public rate hearing on May 26, 2026
Code	S0215, nonemergency transportation; mileage, per mile
Old rate	$0.70 a mile, in effect for dates of service from January 1, 2025
New rate	$0.73 a mile for dates of service from January 1, 2026, an increase of 4.29%
Who is paid	Individual transportation participants (ITPs) registered with TMHP
Claims already paid	TMHP finds and reprocesses affected claims. Any change in payment shows on a later Remittance and Status (R&S) report
Also in the notice	Indian Health Services clinic visits (T1015), from $801 to $826. That code is not part of MTP

TMHP’s January 23, 2026 notice had already listed an S0215 rate of $0.725 for dates of service from January 1, 2026. HHSC’s hearing packet and the July 29 notice list $0.73.

Who the mileage rate pays

The MTP Handbook (September 2026) describes ITPs as people who use their own car to drive themselves, a friend, or a family member to the doctor, dentist, or drug store. An ITP can be the client, a family member, a friend, a neighbor, or the responsible party. ITPs register with TMHP but do not enroll as Medicaid providers.

How an ITP gets paid

1. The client asks for it. The client calls MTP at 877-633-8747 to request a ride from the person who will drive. MTP sends that person’s details to TMHP, which mails a registration package.
2. The driver registers. The driver mails back the Individual Transportation Participant Application with the documents it asks for. TMHP then sends a letter with an Atypical Provider Identifier (API) and a taxonomy code.
3. MTP authorizes each ride. For every approved ride, MTP mails the client a preprinted ITP Service Record, Form H3017. Only rides MTP authorized in advance are paid.
4. The claim goes in by mail. The doctor, dentist, or drug store signs the H3017 to show the ride happened. The ITP signs it, adds the API and taxonomy code, and mails it to TMHP Claims, PO Box 200555, Austin, TX 78720-0555, within 95 days of the ride.

Health plan members too

The rate reaches past fee-for-service. HHSC’s NEMT Services Handbook, chapter 16.4 of the Uniform Managed Care Manual, requires each health plan or its ride vendor to pay ITP mileage at the rate HHSC sets.

How the rate is set

Under 1 TAC 355.8561, the mileage rate for individual drivers in the program is the vehicle mileage rate set by the legislature for state employees. The Texas Comptroller lists that rate as 72.5 cents a mile for January 1 to June 30, 2026, and 76 cents from July 1 to December 31, 2026. Those match the IRS business rates for the same dates. See the IRS mid-year mileage change.

How the MTP mileage rate has moved

Dates of service	S0215 rate	TMHP notice
From January 1, 2025	$0.70, up from $0.67	January 16, 2025
From January 1, 2026	$0.725	January 23, 2026
From January 1, 2026	$0.73, after the May 26 hearing	July 29, 2026
From July 1, 2026	$0.76, listed as an interim rate	September 2, 2026

The July 1 increase and the September 1 fee review are covered in Texas’s fee review update.

What it means for NEMT companies

If you run a demand response company enrolled with TMHP, the July 29 notice does not change your pay. The MTP Handbook’s code table lists S0215 only for ITPs. Demand response providers, including transportation network companies, bill T2003 at one rate per trip, with a modifier for the type of area.

Area	Modifier	Rate before September 1, 2026	Rate from September 1, 2026
Metro (urban)	U1	$32.38	$33.83
Micro (suburban)	U3	$59.64	$62.31
Rural	U2	$76.22	$79.63

Those T2003 rates came from a separate fee review, also presented on May 26, 2026, and TMHP announced them on August 31, 2026. Our Texas state guide explains how MTP trips are booked and billed, and NEMT reimbursement rates by state compares Texas with other states.

Health plan trips work differently. The MTP Handbook does not apply to managed care. Members in a Medicaid health plan get rides through the plan or its ride vendor, and your rate is set in your agreement with that vendor.

What to do now

1. Registered ITPs: watch your R&S reports. TMHP will reprocess affected 2026 S0215 claims. Compare each 2026 line with $0.73 a mile, or $0.76 for rides on or after July 1, 2026. Our guide to reading a remittance advice shows where the paid amount sits.
2. Demand response providers: check claims from September 1, 2026. Each paid T2003 line should match the new rate for its modifier.
3. Bill the right code. Use T2003 with U1, U2, or U3, the MTP prior authorization number, diagnosis code Z753, and place of service 09 on paper or 99 in TexMedConnect. The handbook recommends taxonomy code 343800000X for demand response providers and 347C00000X for transportation network companies.
4. File on time. MTP claims are due within 95 days of the date of service for in-state providers and 365 days for out-of-state providers.
5. Keep records for young riders. The handbook says MTP prior authorization documents for clients 20 and younger must not be destroyed until HHSC sends notice.

Key dates

Date	What happened
January 1, 2025	S0215 rises from $0.67 to $0.70 a mile
January 23, 2026	TMHP lists $0.725 a mile for dates of service from January 1, 2026
May 26, 2026	HHSC holds the public rate hearing on $0.73 a mile
July 29, 2026	TMHP posts $0.73 from January 1, 2026 and starts reprocessing
August 31, 2026	TMHP posts new T2003 rates for dates of service from September 1, 2026
September 2, 2026	TMHP posts $0.76 a mile for dates of service from July 1, 2026

Who to contact

• TMHP Contact Center: 800-925-9126, for claims, payments, and R&S reports
• MTP ride line for clients: 877-633-8747. Clients call at least two business days before the appointment, or five for a trip outside their county
• HHSC Provider Finance, Acute Care Services: PFDAcuteCare@hhs.texas.gov, for questions about the rate hearing
• TMHP EDI Help Desk: 888-863-3638, for electronic claims