According to The Office of Texas Government news release, the Texas Health and Human Services Commission and the Centers for Medicare and Medicaid Services have reached an agreement to continue a critical part of the state’s Medicaid program over the next five years.
The approval of the 1115 Demonstration Waiver will allow the state to continue expanding managed care to Medicaid clients while also preserving supplemental payments to hospitals and other critical Medicaid providers. According to Governor Abbott, “The new 1115 Waiver ensures that funding will remain available for hospitals to treat and serve people across our state who are in need of top-quality healthcare.
The waiver funds uncompensated care for Texas hospitals and other Medicaid providers and maintains level funding for Texas at $3.1 billion each year for the first and second year of the five-year agreement. This will provide much-needed assistance to safety net hospital providers. In the third year and moving forward, CMS will transition to a new method of distributing UC payments to hospitals. The new methodology will account for all provider types and will be based upon uncompensated charity care costs. This will provide a more accurate calculation of Texas’ uncompensated care costs.