Medicare Blog

why did texas refuse to expand medicare medicaid

by Prof. Onie Gerhold III Published 2 years ago Updated 1 year ago
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Why has Texas not expanded Medicaid?

Texas has not expanded, which has allowed the state to save taxpayer money that would have gone into a program that is fraught with issues. Medicaid was created by President Johnson in 1965 to assist lower income individuals and pregnant women who otherwise could not access the health care system.

Does the Texas Senate’s Medicaid Amendment open the door to Medicaid expansion?

Passage of the amendment would have indeed opened the door to Medicaid expansion if that’s what Abbott or the HHSC proposed, but it would have also allowed the state to instead use federal funds earmarked for Medicaid expansion to create a program unique to Texas to cover some of Texas’ estimated 5 million uninsured people.

What does Biden’s Medicaid expansion mean for Texas?

Thursday’s vote comes as the Biden administration offers billions in federal incentives to Texas to join 38 other states in expanding the state-run Medicaid program to include any adults who earn up to 138% of the federal poverty level — or about $3,000 a month for a family of four.

Can you opt out of Medicaid in Texas?

But in 2012, the Supreme Court ruled that states could not be penalized for opting out of expansion, and Texas has chosen to keep their pre-2014 Medicaid eligibility rules. That means non-disabled adults without minor children are ineligible for Medicaid regardless of how low their income is.

Why has Texas not expanded coverage?

How much does Medicaid cover in Texas?

How many people will be insured by expanding coverage in Texas?

How much will the ARP increase for Texas?

How many jobs will Texas add?

Will Texas expand Medicaid in 2021?

Is Kelly Hancock in favor of expansion?

See more

About this website

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Has Texas Medicaid been extended?

Medicaid and CHIP Flexibilities. As noted in the sections below, some Medicaid and CHIP flexibilities have been extended through June 30, 2022.

What impact has the Affordable Care Act had on Texas?

Between 2013 and 2016, the number of uninsured individuals in Texas declined by 20.9%. About 963,000 individuals in Texas were enrolled in health plans offered through the health insurance exchange in 2017. Enrollment in Medicaid amounted to about 4.8 million in May 2017.

Why did states choose to expand Medicaid?

Some states have chosen to leverage Medicaid expansion to raise revenue that allows them to fund other priorities or reduce other taxes. In fact, a recent income tax cut in Arkansas was linked to budget savings created by Medicaid expansion.

How many states decided not to expand Medicaid?

12 statesNonexpansion states include 12 states that have not expanded Medicaid: Alabama, Florida, Georgia, Kansas, Mississippi, North Carolina, South Carolina, South Dakota, Tennessee, Texas, Wisconsin, and Wyoming. Data: Urban Institute's Health Insurance Policy Simulation Model (HIPSM), 2021.

What was wrong with the Affordable Care Act?

The Problem: Affordability The ACA set standards for “affordability,” but millions remain uninsured or underinsured due to high costs, even with subsidies potentially available. High deductibles and increases in consumer cost sharing have chipped away at the affordability of ACA-compliant plans.

Why was the Affordable Care Act challenged?

California v. Eighteen states—along with two individuals—filed a lawsuit in February 2018 arguing that, because federal lawmakers reduced the mandate's “shared responsibility payment” to $0 through the 2017 Tax Cuts and Jobs Act, the individual mandate is unconstitutional.

Does the state of Texas have Medicaid?

What is Texas Medicaid? Medicaid is the state and federal cooperative venture that provides medical coverage to eligible needy persons. The purpose of Medicaid in Texas is to improve the health of people in Texas who might otherwise go without medical care for themselves and their children.

Can the federal government force states to expand Medicaid?

In 2012, the Supreme Court of the United States ruled that the federal government could not force states to expand Medicaid under the ACA. That's because it would cost money for states to cover more people under Medicaid. As a result, each state could choose whether or not to expand their Medicaid program.

Which state is best for Medicaid?

Top 5 states on Medicaid eligibility, spending and qualityMassachusetts.Minnesota.California.Vermont.Rhode Island.

Why is Medicaid expansion unconstitutional?

2 The most complex part of the Court's decision concerned the ACA's Medicaid expansion: a majority of the Court found the ACA's Medicaid expansion unconstitutionally coercive of states because states did not have adequate notice to voluntarily consent to this change in the Medicaid program, and all of a state's ...

Which is a reason some states have not expanded Medicaid to cover more of their needy residents following passage of the ACA?

(The cap on Medicaid eligibility under the ACA is 138 percent of the poverty level, which is currently less than $28,000/year for a family of three.) The lack of a work requirement is purportedly one of the reasons some states still haven't expanded Medicaid coverage.

What is a result when states do not expand Medicaid insurance through the Affordable Care Act?

What Would Happen if All States Expanded Medicaid? If states that are currently not expanding their programs adopt the Medicaid expansion, all of the nearly 2.2 million adults in the coverage gap would gain Medicaid eligibility.

Three reasons Medicaid expansion won’t work (and what to do instead)

The re-election of Louisiana Gov. John Bel Edwards, who made protecting his state’s expanded Medicaid program a key campaign issue, has some pundits excited about the chances of expanding Texas’ own government-run healthcare system. What these pundits fail to realize, however, is that neither an election nor the elation surrounding it make Medicaid expansion a...

21 Reasons for Texas to Expand Medicaid in 2021

This session, Texas leaders have the opportunity to provide relief to over a million Texans and our state budget by expanding Medicaid. The $10 billion federal dollars that will flow into our state annually from expansion will stimulate our economy and give Texans all over the state the coverage they deserve.

ACA Medicaid expansion in Texas [Updated 2022 Guide] | healthinsurance.org

Texas has not expanded Medicaid under the ACA. And they also have the most stringent eligibility guidelines in the country for non-disabled adults. As a result, Texas has the highest uninsured rate and the biggest coverage gap in the country, with at least 759,000 residents — and possibly as many as 1 million — ineligible for Medicaid and also ineligible for premium subsidies to offset the ...

How many people are on medicaid in Texas?

Some 4.2 million people are on Medicaid in Texas — including more than 3 million children. The rest of the recipients are people with disabilities, pregnant women and parents living below 14% of the federal poverty level, or about $300 per month for a family of four. Adults with no disabilities or dependent children don’t qualify for Medicaid, ...

What is the package of bills called that will help all Texans gain better access to health care?

Instead, state leaders have supported a package of bipartisan bills called “ Healthy Families, Healthy Texas ” that they argue will help all Texans gain better access to health care.

Is Medicaid expansion moving?

Medicaid expansion “appears extremely unlikely to move this session,” said state Sen. Nathan Johnson, D-Dallas, author of Senate Bill 117, a plan that had bipartisan support among House members but not in his own chamber.

Who created Live Well Texas?

Johnson’s bill and its companion in the House, House Bill 3871 by state Rep. Julie Johnson, D-Dallas, created a “Live Well Texas” program that envisioned a “unique to Texas” approach to expanding Medicaid, and included incentives for adults to work and manage their own health care responsibly.

Can you get medicaid if you have no disabilities?

Adults with no disabilities or dependent children don’t qualify for Medicaid, and the vast majority of children on Medicaid have parents who do not qualify. The ACA allows states to expand that threshold to 138% of the poverty level, or $3,000 per month for a family of four.

What is community based health center?

These community-based health centers exist for the medically underserved populations and areas across the state, offering primary and preventative care, as well as oral care and mental health and substance abuse services not always covered under the Medicaid program.

What is the ACA?

In the last decade, we have seen substantial changes to the American health care system due to the Patient Protection and Affordable Care Act (ACA) signed into law by President Obama. The ACA brought changes that have impacted all of our lives.

Which states did Medicaid expand?

The states hardest hit by the coronavirus are states that did expand Medicaid, including New York, New Jersey, Washington and California. Clearly, Medicaid expansion is no panacea for a pandemic.

How many states will expand in 2020?

As of May 2020, 36 states and Washington, D.C. have chosen to expand. Texas has not expanded, which has allowed the state to save taxpayer money that would have gone into a program that is fraught with issues.

When was Medicaid created?

Medicaid was created by President Johnson in 1965 to assist lower income individuals and pregnant women who otherwise could not access the health care system. But expansion has broadened the program to include a population that can access care through other avenues.

Is telemedicine available in Texas?

The health care system in Texas has also seen the liberalization of telemedicine in light of COVID-19. Telemedicine can be an accessible alternative for individuals who may not have reliable transportation to attend appointments.

Who is Gilberto Hinojosa?

That’s what Gilberto Hinojosa, the chairman of the Texas Democratic Party claims in the Fort Worth Star-Telegram. His prescription is for the Legislature to expand Medicaid as soon as it convenes in January. First, a little background.

Why is Texas refusing to expand Medicaid?

By refusing Medicaid expansion under the ACA, Texas has already missed out on billions in federal funding that would otherwise have flowed to the state to provide medical care for their low-income residents. And in addition, the state’s emergency rooms are providing $5.5 billion in uncompensated care each year, treating patients who don’t have health insurance. If Medicaid eligibility had been expanded, uncompensated care would have dropped considerably, so hospitals and business groups across the state have been pressuring lawmakers to relent on their opposition to Medicaid expansion.

How many people are in the Medicaid coverage gap in Texas?

759,000 people are in the coverage gap in Texas. Non-disabled, non-pregnant adults only eligible if they have a minor child and earn less than 14% of the poverty level. Texas Medicaid enrollment has only grown by 3% since 2013. The state is missing out on billions in federal funding by not expanding Medicaid.

How to apply for medicaid in Texas?

If you believe you may be eligible to enroll in Medicaid in Texas: 1 You can enroll through HealthCare.gov, either online or by phone at 1-800-318-2596. (Use this option if you’re under 65 and don’t have Medicare.) 2 You can enroll through the Medicaid website maintained by the Texas Health and Human Services Commission. 3 You can also download and print a paper application, or request that one be mailed to you, by using this page on the Texas Medicaid website.

What percentage of poverty is Medicaid?

As the ACA was written, it called for Medicaid expansion in every state for legally present residents with incomes up to 133 percent of poverty (138 percent, with the built-in 5 percent income disregard).

How much is uncompensated care in Texas?

Uncompensated care: $25 billion in federal funding. Political leaders in Texas have remained mostly uninterested in expanding Medicaid. Instead of pushing for legislation to expand Medicaid, Texas officials negotiated with CMS in an effort to secure ongoing funding to cover uncompensated care in the state.

What is the highest uninsured rate in the US?

According to U.S. Census data, 22.1 percent of Texas residents were uninsured in 2013. It stood at 17.7 percent in 2018, which was still the nation’s highest uninsured rate.

How much federal money does Texas receive?

They were successful in getting the Trump Administration to agree to a five-year extension of the state’s waiver for uncompensated care, and Texas is receiving $25 billion in federal funding (from 2018 through 2022) as a result.

What did the Texas House reject?

On Thursday, the Texas House rejected a budget amendment that would have opened the door to provide health coverage for more low-income Texans. Credit: Michael Stravato for The Texas Tribune. The Texas House rejected an attempt Thursday to direct the governor and state health officials to use billions in federal dollars to expand health care ...

Who said Texas put Abbott in the driver's seat?

That is not what this amendment does.”. State Rep. Richard Peña Raymond, D-Laredo , said the idea “puts Texas in the driver’s seat, and really Gov. Abbott in the driver’s seat” instead of forcing their hand or pushing through a program unpopular with conservatives. But Republican state Rep. Giovanni Capriglione, ...

Is Texas expanding Medicaid?

The Texas Legislature has declined to pass any broad expansion of state and federal health care coverage for uninsured Texans since the Affordable Care Act of 2010 required states to expand Medicaid — a provision that was later struck down by the U.S. Supreme Court. Since then, Texas lawmakers have occasionally debated Medicaid expansion ...

Which states have expanded Medicaid?

Eleven other states have expanded Medicaid coverage using a waiver, according to the Kaiser Family Foundation : Arizona, Arkansas, Indiana, Iowa, Michigan, Montana, Nebraska, New Hampshire, New Mexico, Ohio and Utah. Given resistance to expanding Medicaid coverage from the state’s Republican leaders, past bills to broaden eligibility have stalled, ...

What is the income limit for Medicaid in Texas?

Parents can also qualify for coverage if their monthly income is $200 or less for a family of two or $300 or less for a family of four. Under Medicaid expansion, eligibility would broaden to include adults who earn up to 138% ...

How many Republicans are on House Bill 3871?

Nine Republicans and all 67 Democrats in the chamber signed on to House Bill 3871 as co-authors, publicly expressing support for the Medicaid expansion plan. With 76 lawmakers on board, the bill would have enough support to pass through the 150-member chamber.

What is the 80-68 vote in Texas?

The 80-68 vote came as state leaders face heightened pressure to expand coverage through the joint state-federal program to more low-income Texans after federal officials this month rescinded approval for a waiver that delivers billions of dollars to a safety net program for uninsured Texans. “For the last decade, Texas has operated ...

Is Medicaid expanding in 2019?

In 2019, a budget amendment to expand Medicaid was defeated 80-66 along party lines.

Which state has not expanded Medicaid?

The Texas State Capital in Austin. Texas remains one of the few states in the country that has not expanded its Medicaid program to more low-income adults. The pandemic might compel state lawmakers to at least consider changing that during the upcoming legislative session, though.

Which state has the highest uninsured rate?

Texas has long had the highest uninsured rate in the country, but the pandemic has made a bad situation worse. Early this summer, Families USA, a consumer health advocacy group that supports the Affordable Care Act, found that 29% of Texas adults under 65 didn't have health insurance at the time.

Does Texas have Medicaid?

Texas is one of just 12 states that have not expanded Medicaid under the Affordable Care Act – largely for ideological reasons. In the past few years, a growing number of conservative states have begun to expand their programs.

HOW CAN WE CHANGE THIS?

Gov. Greg Abbott has the authority to do it unilaterally, as did his predecessor, Rick Perry. The expansion program started in 2014 and Abbott has been governor since 2015. It also could be done by the Legislature. Attempts thus far have failed.

WHY SAY NO TO BILLIONS?

Perry refused expanded Medicaid, saying the entire Medicaid program was unsustainable. You could say that about any number of government programs and services, including the defense budget. We could try doing without them and see how sustainable that turns out.

CAN ABBOTT BE CONVINCED?

We are trying to be optimistic. It's why we broached the subject in the first place -- because we think coronavirus is the tipping point. We worry what it'll do to the uninsured poor people who don't qualify for Medicaid if Texas doesn't take the expansion.

Why has Texas not expanded coverage?

The signatories to the bill would have been enough for the bill to pass in the House. The short answer to why Texas hasn’t expanded coverage is politics. For Johnson and other advocates, the worry is whether or not it would pass the Senate, where Lt. Governor Dan Patrick controls which bills make it to the floor.

How much does Medicaid cover in Texas?

As of now, Medicaid in Texas is only available for a family of two if they make less than $200 a month or $300 a month for a family of four, but the expansion would grant coverage to people making $1,500 per month for an individual and about $3,000 per month for a family of four.

How many people will be insured by expanding coverage in Texas?

A Commonwealth Fund report is the latest study to show the benefits of expanding coverage in Texas and other states. The report estimates 1.7 million people will become insured should Texas expand coverage, reducing the number of uninsured Texans.

How much will the ARP increase for Texas?

ARP will increase the federal contribution to Medicaid from 60 to 65 percent for two years for states that expand coverage. Those funds would apply to Texas’ current Medicaid population for those two years, which is now 4.2 million Texans, not the newly covered individuals.

How many jobs will Texas add?

It estimates that Texas would add nearly 300,000 jobs across industries including healthcare, construction, finance, and retail. The infusion in federal money and improved health output would generate $28 billion in gross output and more than $19 billion in personal income gains in the state.

Will Texas expand Medicaid in 2021?

But at the end of the 2021 legislative session, no healthcare expansion of any kind got anywhere near becoming law. Opponents lament the cost of expanding Medicaid in Texas, but this year, the Biden administration sweetened the deal for expansion with its American Rescue Plan Act. The bill encourages states to expand healthcare coverage ...

Is Kelly Hancock in favor of expansion?

Rep. Kelly Hancock of North Richland Hills is not in favor of expansion because of potential costs. He is also chair of the business and finance committee in the Texas Senate. “Healthcare continues to be the fastest-growing part of our budget,” he told D CEO last year.

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