Texas hospitals expect to lose $27 million a day in Medicaid funding starting Tuesday
Summary
Starting Tuesday, Texas hospitals will lose $27 million each day in extra Medicaid funding because the federal government is not approving nearly $10 billion in payments for the next year. This funding supports hospitals in covering the higher costs of treating Medicaid patients, and without it, hospitals may need to reduce services.Key Facts
- The loss is due to the federal government not approving $9.8 billion for Texas Medicaid programs, mainly the CHIRP program.
- CHIRP helps hospitals cover the gap between Medicaid payments and the real costs of care.
- Texas hospitals pay about $4 billion a year in local taxes, which the federal government matches to fund Medicaid reimbursements.
- About 4 million low-income Texans, mostly children, are on Medicaid.
- Houston’s public healthcare system could lose at least $258 million, with a total regional loss up to $1.4 billion next year.
- Federal officials are withholding funds because they question how Texas local governments calculate hospital taxes.
- Governor Greg Abbott says Texas’s tax system follows federal law and criticized the federal hold on funds.
- Hospitals warn that losing this funding will force cuts in critical healthcare services for patients with Medicaid and other insurance.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
