THA Issues Statement on Proposed Medicaid Reforms by Congress

As Congress continues to contemplate significant cuts to Medicaid funding as part of a larger policy package, the Texas Hospital Association has issued the following statement in response to draft legislation released Sunday evening. The U.S. House Energy & Commerce Committee is expected to mark up the legislation on Tuesday.

THA advocated successfully against several key threats in the areas of Medicaid block grants, elimination of local provider taxes, and per capita caps, all of which were avoided in the draft legislation. Additional work remains to fully protect Texas hospitals, patients and communities to preserve access to care.

AUSTIN, Texas (May 12, 2025) – “Texas hospital leaders worked closely for months with their congressional delegation members to make sure hospital and patient voices were heard clearly and unequivocally. Texas appreciates the willingness of congressional delegation members to hear and understand the unique nature of Texas’ lean Medicaid program. We are grateful the draft legislation does not contain many of the deep, blunt cuts that had been contemplated – cuts that would have had serious consequences for Texas communities and hospitals.

“While we appreciate these efforts to shield the Texas Medicaid program from catastrophic damage, the Texas hospital industry believes provisions should go a step further to include flexibilities and growth factors to ensure the program can meet the needs of the state. As a state that did not expand Medicaid, Texas and its unique funding methods would be disproportionately impacted by some of the proposed reforms. Congress should protect the fiscally responsible way Texas has chosen to structure the financing of its program. The reforms as written will restrict Texas’ ability to finance its Medicaid program and accommodate our state’s exceptional projected growth.

“Texas will continue to evaluate the particulars of the legislation and work with its hospitals to protect the health and safety of our communities. Hospitals must continue to vocalize the importance of Medicaid and the critical importance of hospitals to their patients and local economies.”

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Texas Hospital Association
Founded in 1930, the Texas Hospital Association is the leadership organization and principal advocate for the state’s hospitals and health care systems. Based in Austin, THA enhances its members’ abilities to improve accessibility, quality and cost-effectiveness of health care for all Texans. One of the largest hospital associations in the country, THA represents more than 85% of the state’s acute-care hospitals and health care systems, which employ some 400,000 health care professionals statewide.