A Central Pillar of Texas Health Care is at Risk: Federal Medicaid Rules Would Cost Texas $3.4 Billion

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Author:
Anne Dunkelberg /(512) 320-0222 x 102

April 16, 2008

A Central Pillar of Texas Health Care is at Risk: Federal Medicaid Rules Would Cost Texas $3.4 Billion >>  
Governor Perry's Letter to Congress >>  
Partnership for Medicaid Health Care Providers’ Letter to Congress >>  

Federal Medicaid officials are trying to impose a number of rules that, if implemented, would make program cuts that would threaten our most vulnerable citizens, limit our ability to serve more low-income children in CHIP, and shortchange taxpayers at the same time. Texas Medicaid officials estimate that these rules would cost Texas Medicaid $3.4 billion in lost federal support over five years. The cuts would force Texas to cut services for children with disabilities and frail seniors as well as support for safety net hospitals, or else raise taxes to make up the lost federal funds. Governor Rick Perry, the National Governors Association, and the National Association of State Medicaid directors all have urged Congress to stop the rules from taking effect, and Congress is now debating bills that would delay the rules for at least a year. In every case, these rules attempt to impose harsher policies than underlying federal law, and in many cases policies that have been specifically rejected by Congress. Read more about the rules and how you can help prevent these cuts (including a letter from Governor Perry urging Congress to stop the rules from taking effect).