Now more than ever, Texas hospitals need leaders in Washington, D.C., to advance sound policies that help facilities continue to fulfill their lifesaving mission – and navigate the considerable challenges that come with delivering health care in the modern age.
Budget discussions in the 119th Congress have quickly centered around legislative packages that would result in dramatic cuts to Medicare and Medicaid numbering in the trillions of dollars. At the same time, THA and other hospital advocates are pushing for a repeal of separate cuts to safety-net hospital funding and the continuation of key programs set to expire in early 2025, such as critical payment programs for rural hospitals.
THA will continue working with the 40 members of the Texas congressional delegation to champion policies that protect the health care safety net, preserve states’ ability to obtain ample funding for their Medicaid programs and improve access to care in rural hospitals, among many other policy needs.

Facing the Federal Flurry: Ensure a Healthy Future for All Texans
Congress is discussing aggressive budgetary reforms in 2025 that pose a catastrophic threat to hospitals, access to care for all Texans and the economy of the state. Trillions in cuts to Medicare and Medicaid funding are being considered as part of a budget package that includes sweeping domestic policy reforms. At the same time, April 1 looms as a key date by which lawmakers must resolve a huge pending cut to Medicaid safety-net hospitals and preserve several key programs that are set to expire.

Texas Hospitals’ 2025-2026 Federal Policy Priorities
During an era when the need for both physical and behavioral health care is acute in Texas and across the nation, Texas hospitals continue to pursue their lifesaving mission in the face of numerous headwinds: below cost reimbursement; inflationary pressures and higher drug costs; bottlenecks in the hospital workforce pipeline; sicker patients and ever-thickening insurer red tape that impedes care and raises costs. They battle through these challenges while continuing to be the only providers who offer 24/7 care every day of the year.
Key Issues
Medicare & Medicaid
Get the key information on Medicare and Medicaid, the two government-sponsored programs that provide a significant portion of Texas hospitals’ patient revenue.
Medicaid DSH Cuts
Learn about Texas hospitals’ work to stop harmful reductions to Medicaid Disproportionate Share Hospital payments.
Surprise Billing
Texas hospitals are keeping tabs on state and federal surprise-billing laws enacted in recent years to ensure Texas patients no longer receive surprise medical bills for emergency or unplanned out-of-network health care services.
340B Drug Pricing Program
Through the federal 340B program, pharmaceutical manufacturers sell drugs used in eligible safety net hospitals’ outpatient settings at discounted prices. Texas hospitals are working to make sure 340B remains robust and accessible for providers.
Price Transparency
Responsibility for good health care decision making rests with all of us — hospitals, physicians, insurers, employers and consumers themselves. As with many issues in health care, price transparency is complex and requires engagement of all stakeholders along the continuum of care to ensure meaningful transparency for patients.