April 22, 2022
CONTACT:
Jennifer Banda, senior vice president, advocacy and public policy, 512/465-1046
Anna Stelter, senior director, policy analysis, 512/465-1556
The Centers for Medicare & Medicaid Services today notified Texas that, effectively immediately, it was withdrawing its rescission of the state’s 10-year 1115 Medicaid waiver extension. CMS has determined that it is not the federal government’s best use of limited resources to continue litigating the matter. The Texas Healthcare Transformation and Quality Improvement Program (THQIP) is now approved as extended and governed by the special terms and conditions that were approved by CMS on Jan. 15, 2021.
The Texas Hospital Association issued a media statement in response to the announcement. “This is a step forward for the health of Texas and brings some relief for hospitals and the patients they serve. Today’s decision creates certainty following months of ambiguity during an ongoing pandemic. While funding, staffing and COVID-19 continue to challenge hospitals, we look forward to having a solid foundation to work from and rebuild,” said John Hawkins, president and CEO of THA.
Today’s approval locks in for 10 years Texas’ managed care authority, uncompensated care pool, public health providers charity care pool, and budget neutrality methodology previously agreed between Texas and CMS, including carryforward of accumulated savings. The waiver extension, however, does not guarantee future CMS approval of any state directed payment programs, and the Office of the Inspector General’s audit of Texas’ Local Provider Participation Funds is still proceeding. Texas’ state fiscal year 2022 DPPs will expire on Sept. 1, 2022.
The Texas Hospital Association has been strongly advocating for clarity on the Texas 1115 waiver on behalf of its members. THA will continue to underscore at the state and national level the need for coverage expansion, appropriate payments that more closely match the cost of care, and a stable uncompensated care pool. THA will continue to work closely with state and federal partners on the waiver and other programs to best suit the unique needs of Texas.
According to Texas Government Code 305.027, portions of this material may be considered “legislative advertising.” Authorization for its publication is made by John Hawkins, Texas Hospital Association, 1108 Lavaca, Ste. 700, Austin, Texas 78701-2180.