Texas secures $12 billion in restored Medicaid funds after year-long federal standoff
Gov. Abbott announces end to dispute with CMS that threatened $27 million daily cuts to hospitals.
What to know
- Texas and CMS have resolved a nearly year-long dispute over Medicaid supplemental funding, with Gov. Abbott announcing restoration of $12 billion that threatened $27 million in daily cuts.
- The funding halt began September 1, marking the first time since the program started in 2014 that CMS stopped payments, and stemmed from disputes over how Texas raises $4.2 billion in state taxes to access the federal funds.
- The restoration ends an acute crisis for Texas hospitals, rural clinics, nursing facilities, and behavioral health providers that serve low-income Texans.
“Hospitals can focus on what they do best – saving lives and caring for Texans. Our gratitude cannot be overstated.”
John Hawkins, President and CEO, Texas Hospital Association · Texas Tribune ↗ · Sep 16
Greg Abbott Governor of TexasCenters for Medicare and Medicaid Services (CMS) Federal health regulatorJohn Hawkins President and CEO, Texas Hospital Association
Robert F. Kennedy Jr. U.S. Health Secretary
How it unfolded 1 development · click the chart to see its coverage articlesposts
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Texas Hospital Association expresses relief and gratitude
John Hawkins, president and CEO of the Texas Hospital Association, states that the Medicaid crisis has been averted and thanks Gov. Abbott and state and federal leaders for protecting Texas patients.
“We can breathe a little easier today. The Medicaid crisis hanging over our heads has been averted. We are deeply grateful to Gov. Abbott, state and federal leaders who listened, took our concerns seriously and acted with urgency to protect Texas patients.”
— John Hawkins -
first by The Business Journals, 6d ago · also FOX 26 Houston, Texas Tribune
2 more headlines
- $12 billion in Medicaid funding restored to Texas hospitals FOX 26 Houston · 6d ago
- $12 billion in Medicaid funds restored to Texas hospitals, ending impasse with the feds The Texas Tribune · 6d ago
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Breaking: $12 billion in Medicaid funds restored to Texas hospitals, ending impasse with the feds.
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Abbott announces restoration of $12 billion in Medicaid funding — Gov. Greg Abbott announces that nearly $12 billion in Medicaid funding to Texas hospitals will be restored, ending the year-long impasse with the federal government. Abbott credits CMS and the Trump Administration for the resolution.
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Abbott appeals to federal health officials — According to reporting, Gov. Abbott's office steps in and sends a letter to Health Secretary Robert F. Kennedy Jr., calling the funding halt an 'economic gun to Texas.'
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CMS halts $12 billion in Medicaid payments to Texas — The Centers for Medicare and Medicaid Services stops supplemental funding to Texas hospitals at the start of the state's new fiscal year. This marks the first time since the program began in 2014 that CMS has halted the payments, threatening hospitals with $27 million in daily losses.
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CMS disputes Texas Medicaid funding structure — A dispute begins between Texas and the Centers for Medicare and Medicaid Services over questions about how Texas raises more than $4.2 billion in taxes to access federal Medicaid supplemental funding to hospitals.