Biden administration revokes billions in Texas Medicaid funding

CMS rescinded approval for a waiver that would have extended reimbursement to Texas hospitals for uncompensated care for 10 years.

Five things to know:

1. On Jan. 15, CMS approved Texas' Section 1115 waiver to amend and extend parts of its Medicaid program through Sept. 30, 2030. The approval came under the previous administration.

2. In an April 16 notice to the Texas Health and Human Services Commission, the Biden administration said that under the previous administration, CMS and Texas failed to adhere to public comment period requirements in the approval process. CMS argued the public comment period is necessary for stakeholders to share feedback.

3. The decision will rescind billions in healthcare dollars that would have been granted to the state, according to the Houston Chronicle.

4. The Texas Hospital Association opposed the withdrawal. In an April 16 written statement, THA President and CEO Ted Shaw said the association "is extremely disappointed by [the April 16] action by CMS to abruptly rescind the previously approved waiver extension for Texas." He continued: "This action undermines the safety net and hospitals' ability to protect people. It puts the state's health at serious risk and creates unprecedented levels of uncertainty for an industry that is charged with saving lives."

5. The state's current waiver won't expire until September 2022. 

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