CMS Approval of Medicaid 1115 Waiver Preserves Vital Supplemental Hospital Funds
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(Dec. 12, 2011) – “The Texas Hospital Association views the Centers for Medicare and Medicaid Services’ approval today of the state’s Medicaid 1115 waiver as a positive step because it preserves vital federal supplemental hospital funding as the Texas Health and Human Services Commission expands Medicaid managed care statewide. The supplemental Upper Payment Limit program helps mitigate the shortfall created by state’s reimbursing hospitals less than their actual costs for delivering Medicaid services; hospitals receive about 60 percent of costs, and UPL helps offset a portion of the shortfall. The framework of the waiver envisions transition to a health care delivery system that provides more effective care management, better outcomes and reduced costs, and hospitals support these goals. Many of the operational details still are being worked out, and how the current funding streams transition to the waiver structure are critical issues for hospitals. THA will continue to work with THHSC and the legislative leadership to ensure patient access to hospital services in local communities while preserving critical federal supplemental funding under the terms of the waiver.” Related Document(s): Centers for Medicare & Medicaid Services Waiver List
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