Medicaid 1115 Waiver - Texas Health Care Transformation and Quality Improvement Program
Texas’ Medicaid 1115 Waiver is transforming how health care is delivered and paid for in Texas. Approved in Dec. 2011, the Waiver will expire Sept. 30, 2016. Effort to renew the Waiver must begin now to preserve uncompensated care funding and delivery system reform incentive payments.
The Waiver has two primary purposes:
- Expands Medicaid managed care to the entire state.
- Replaces the upper payment limit program with two new pools of funding. One, the uncompensated care pool, valued at $17.582 billion between 2011 and 2016, reimburses hospitals for the cost of care for Medicaid and uninsured patients for which the hospital does not receive payment. The second, the delivery system reform incentive payment pool, provides up to $11.418 billion in earned incentive payments to hospitals and other providers upon their achieving certain goals that are intended to improve the quality and lower the cost of care.
THHSC Waiver Resources
CMS Deferral of Uncompensated Care Payments
In Oct. 2014, CMS notified THHSC that it is deferring $68 million in federal Medicaid funds tied to private hospital uncompensated care payments from 2013 under the Waiver. CMS is deferring payment while it investigates concerns it has about allegedly improper provider donations.
CMS Notice of Deferral (Oct. 2014)
THHSC Notice of Deferral (Oct. 2014)
THA Letter to THHSC Executive Commissioner (Oct. 2014)
CMS is questioning the financing mechanisms being used based on guidance issued in a State Medicaid Director Letter #14-004 on May 9, 2014.
THHSC Letter to Cindy Mann – CMS (Nov. 2014 )