Yes. Starting from KitKat you still can intercept SMS but not silently capture it without they appear in the inbox.
Also, you can't send SMS (you will see no error if you try but the SMS is not sent).
As Mark told, your app must be set as the defalut SMS app to do all of this.
But the main problem is that you need to write a new SMS client interface from scratch that allow the user to normally manage SMS. And this is a huge and complex job if you want to implement all the functions that the stock client has ...