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State Policy·TX·September 17, 2026
Texas Hospitals Regain $12 Billion in Medicaid Funding After Federal Dispute Resolved
Texas hospitals will receive $12 billion in Medicaid funding following resolution of a nearly year-long dispute with CMS. The impasse had threatened hospitals with $27 million in daily losses. The restoration of funds ends uncertainty over supplemental payment programs that support hospitals serving Medicaid and uninsured populations. The resolution allows Texas to continue making these payments under terms acceptable to federal regulators.
Why it matters
The settlement preserves critical supplemental payments that support hospital margins and access to care in the nation's second-largest Medicaid program, affecting provider networks and financial stability for managed care plans operating in Texas.
Finance · Managed Care
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