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Texas Tribune

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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.

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State Policy·TX·24d ago

Texas Medicaid Application Backlog Exceeds 200,000 Amid System and Policy Challenges

More than 200,000 Texans are waiting for Medicaid approval as enrollment declines, driven by outdated technology and stricter eligibility requirements affecting both Medicaid and SNAP. State officials and advocates report the backlog is preventing timely application processing. The delays affect beneficiaries seeking coverage and states' ability to meet federal timeliness standards. This represents an operational breakdown in Texas's eligibility determination system during a period when application volume and administrative requirements have increased.

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State Policy·TX·27d ago

Texas Attorney General Declines Legal Challenge to $10 Billion Federal Medicaid Reduction

Texas Attorney General Ken Paxton has not challenged a $10 billion federal Medicaid funding cut under the current administration, despite successfully suing the Biden administration three years ago over similar withholding of Medicaid funds. The lack of legal action represents a significant policy shift for Texas, which previously litigated to restore federal Medicaid payments. The funding reduction affects Texas' Medicaid program immediately, though the article does not specify which funding stream is being cut or when the reduction took effect. The discrepancy matters for Texas Medicaid stakeholders because $10 billion represents substantial state program funding that affects managed care capitation rates, provider payments, and benefit coverage.

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State Policy·TX·31d ago

Texas Governor Defends State Medicaid Hospital Funding Amid Federal Scrutiny

Texas Governor Greg Abbott publicly defended the state's Medicaid hospital funding structure, which channels nearly $10 billion annually to hospitals. A spokesman stated Texas has not violated federal requirements that would disqualify the funding. The statement comes amid apparent federal scrutiny of the arrangement. The defense is notable given Texas leadership's typically reserved stance on Medicaid program operations.

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State Policy·TX·33d ago

Texas Hospitals Lose $27 Million Daily as Federal Medicaid Supplemental Payments End September 1

The Trump administration will terminate $9.8 billion in supplemental Medicaid funding to Texas hospitals effective September 1, 2026, resulting in $27 million in daily losses statewide. The funds currently help hospitals cover the gap between Medicaid reimbursement rates and actual service costs. Texas hospitals will face immediate financial pressure as the supplemental payments — which support uncompensated care and low Medicaid reimbursement — are eliminated. This action affects hospital margins, capacity to serve Medicaid beneficiaries, and potentially network adequacy for managed care organizations contracting with affected providers.

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State Policy·TX·36d ago

Democrats Target Medicaid Cuts in South Texas House Races

Healthcare has emerged as a central issue in South Texas' battleground House races, with Democratic candidates focusing campaign messaging on lapsed insurance subsidies and Republican-backed Medicaid cuts. The political emphasis reflects rising healthcare costs and their electoral significance in the state's most competitive districts. Democrats are using Medicaid funding reductions as a key contrast point in races that could determine state legislative control. This development signals that Medicaid policy decisions are becoming flashpoints in Texas electoral politics, potentially affecting future state budget negotiations and Medicaid program direction.

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