HHSC Releases Report on Impact on Texas if Medicaid is Eliminated
The Texas Health and Human Services Commission (HHSC) today released the report Impact on Texas if Medicaid is Eliminated, in accordance with House Bill 497, 81st Legislature, Regular Session, 2009. H.B. 497 instructed HHSC to conduct a joint study with the Texas Department of Insurance (TDI) to determine the impact on the Texas health care system if the state Medicaid program is abolished or if the amount of available funding for the program is severely reduced.
The report concludes that
- Texas would lose $15 billion (SFY 2009) in federal matching funds for client services and hospitals.
- At the same time, Texas residents and businesses would continue to pay federal taxes in support of other states' Medicaid spending.
- Up to 2.6 million Texans could become uninsured.
- Hospitals still would be required by federal law to treat medical emergencies of uninsured former Medicaid and CHIP clients, potentially adding billions to uncompensated care costs each year.
- The Legislature could preserve benefits for some current Medicaid and CHIP clients using the state share of funding while shielding the state budget from significant losses, but it will be difficult to accomplish these two goals without shifting costs to county governments and public hospitals.
More information is available from the HHSC External Relations Division at 512-487-3300, or via e-mail at HHSCExternalRelations@hhsc.state.tx.us.
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