UPDATED: Responses to Medicaid Waiver Action

Published 4:14 pm Friday, April 16, 2021

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The following is a statement from Ted Shaw, Texas Hospital Association president/CEO, on the federal government’s action today to rescind the 10-year Medicaid 1115 waiver extension that was granted by the previous administration. Set to be in place through 2030, the waiver extension would have provided life-saving health care funding for Texas.

“The Texas Hospital Association is extremely disappointed by today’s action by CMS to abruptly rescind the previously approved waiver extension for Texas. With an ongoing pandemic and millions of uninsured Texans, Texas hospitals have been stretched like never before and clearly have a critical role in protecting the health and wellbeing of all Texans. This action undermines the safety net and hospitals’ ability to protect people. It puts the state’s health at serious risk and creates unprecedented levels of uncertainty for an industry that is charged with saving lives. The waiver extension would have helped the state to seamlessly continue support for much-needed health care improvements and would have continued stable funding for hospitals that serve large numbers of uninsured patients.”

Governor Greg Abbott today issued a statement after the Biden administration rescinded a 10-year 1115 Medicaid waiver extension that was granted by the previous administration. This extension, which was scheduled to run through 2030, would have provided critical healthcare funding, including funds for uncompensated care.

“By rescinding this waiver extension, the Biden administration is obstructing healthcare access for vulnerable Texans and taking away crucial resources for rural hospitals in Texas,” said Governor Abbott. “The State of Texas spent months negotiating this agreement with the federal government to ensure vital funds for hospitals, nursing homes, and mental health resources for Texans who are uninsured. With this action, the Biden administration is deliberately betraying Texans who depend on the resources made possible through this waiver.”

Texas Comptroller Glenn Hegar today issued a statement following the Biden administration’s decision to rescind Texas’ 1115 waiver extension. The extension was granted by the previous administration and was set to run through 2030.

The initial waiver was approved by the Obama administration in 2011 and was renewed again in December 2017. The extension provided an important economic foundation and the fiscal certainty needed by Texas to properly plan for its post-pandemic recovery.

“The state of Texas negotiated in good faith to secure this waiver, believing that the federal government would honor its commitments to the people of Texas,” Hegar said. “At a time when the entire nation is trying to pull itself out of the worst economic crisis since the Great Depression, the Biden administration is recklessly working to undermine our fragile recovery by holding hostage the critical funding Texas needs to support its rural hospitals, nursing homes, mental health and other crucial care facilities.

“It is particularly irresponsible for President Biden to take this action while his administration continues to fail to meet its responsibilities along our southern border. Uncompensated care is a major contributor to the costs of Medicaid that this waiver helped to mitigate, and rescinding it now is particularly malicious given the costs rural hospitals face in providing that type of care.”

Visit the Comptroller’s website to learn more about the state’s 1115 waiver