THHSC Unveils Fiscal Year 2012-13 Budget Request

Aug. 9, 2010 - On Aug. 6, the Texas Health and Human Services Commission’s Advisory Council reviewed a preliminary draft of the agency’s state fiscal year 2012-13 Legislative Appropriations Request. Preparation of the LAR is the initial step in the budgeting process. 
    
Important to hospitals, the initial draft contained a number of key options related to the expansion of Medicaid managed care statewide, including initiatives that will: 

• Introduce the Medicaid managed care model into the South Texas region;
• Remove the hospital carve-out feature from existing STAR+PLUS Medicaid managed care markets, resulting in the inclusion of inpatient hospital payments in the capitated premium amount;
• Expand existing Medicaid managed care service delivery areas to the contiguous counties surrounding the current market;
• Implement the STAR+PLUS model in the Lubbock and El Paso markets; and
• Employ a Medicaid Exclusive Provider Organization approach for all remaining markets.

During the meeting, staff from the Texas Hospital Association and other industry representatives testified on the ramifications associated with the rollout of Medicaid managed care in new markets, and the devastating effects that proposed expansion will have on Medicaid supplemental upper payment limit payments. 

Earlier this year, THHSC received budget instructions from state leaders to achieve savings of 5 percent in the initial budget request, and to develop options to cut an additional 5 percent. The agency will complete preparation of the LAR by Aug. 31. At this time, it is unclear what additional cuts will have to be achieved to begin addressing the state’s 2012-13 budget shortfall, currently estimated at $18 billion.