How Healthcare Reform Will Affect Texas (Updated!)

At a joint committee hearing on March 31, the Senate Committee on State Affairs and the Senate Health and Human Services Committee discussed how the recently passed federal healthcare reform bill will impact Texas's public and private insurance system, its healthcare industry, CHIP and Medicaid, and the state budget.

Health and Human Services Commissioner Tom Suehs and Texas Department of Insurance Commissioner Mike Geeslin both testified that the bill causes wide-reaching changes; however, they could not speak to exactly what those changes would entail. Commissoner Sueh's said that HHSC must work to figure out answers as they begin to implement the bill.

One of the biggest questions is the bill's impact on Texas' budget. Commissoner Suehs estimated that between 2014 and 2023, it will cost about $27 billion. The Congressional Budget Office (CBO), however, estimates that bill will only cost Texas $1.4 billion. There are some reasons for this discrepancy, though they cannot account for all of it:

• The CBO report estimates the cost from 2010- 2019; Suehs' estimate is for 2014- 2023.
• The CBO report does not take administrative costs into account.
• Commissioner Suehs does not include potential savings from the bill in his estimate.

Watch three clips of legislators and Commissioner Suehs discussing the financial implications of health care reform for the State of Texas.

Suehs testified that there may be potential savings in certain pilot programs that the bill allows for. These programs include compensation based on health outcomes, increased mental health care, and long-term home care for the chronically ill.

Watch Commissioner Geeslin give his take on the outlook for Texas and TDI as health care reform is implemented.

Watch Commissioner Suehs describe the innovative pilot programs that Texas can now implement because of the bill.

We do know, though, that this legislation will help approximately 90% of the 6.1 million uninsured Texans get coverage. About 2.1 million Texans will get coverage through Medicaid expansions, which will put a drain on the already overstressed eligibility system in Texas. Commissioner Suehs testified that he and his staff full intent to have the eligibility system in working order before the exchange is implemented.

Watch Commissioner Suehs talk about how many of the 6.1 million Texans who are currently uninsured will get coverage through the Patient Protection and Affordabie Care Act.

Watch Commissioner Suehs discuss how HHSC will manage the increased caseload because of expansion to Medicaid.

You can see HHSC's and TDI's presentation to the joint committee by clicking here and here.

For more information about healthcare, you can read a summary of the Patient Protection and Affordable Care Act and the reconciliation bill.