Protecting Texas Medicaid Program from Unlawful Federal Changes

Translate to Spanish or other 102 languages!

The lawsuit argues that the imposed requirements are neither supported by existing laws nor mandated by current regulations. Image for illustration purposes
The lawsuit argues that the imposed requirements are neither supported by existing laws nor mandated by current regulations. Image for illustration purposes

Mega Doctor News

- Advertisement -

AUSTIN – Texas Attorney General Paxton has launched a legal battle against the Centers for Medicare and Medicaid Services (CMS) and the U.S. Department of Health and Human Services (HHS), contesting a federal bulletin that poses a threat to Texas’s Medicaid program and its nearly five million beneficiaries. 

The lawsuit argues that the imposed requirements are neither supported by existing laws nor mandated by current regulations. Furthermore, Attorney General Paxton has filed a motion for a preliminary injunction to halt CMS’s actions.

Attorney General Paxton expressed concerns that CMS’s actions could jeopardize not only local governments’ ability to support Medicaid providers but also the entire state’s capacity to fund its Medicaid program. The potential consequences of CMS’s actions could lead to reduced access to healthcare for vulnerable Texans and hinder local providers’ ability to serve communities across the state.

- Advertisement -

Texas’s Medicaid program relies on funding from both the state and federal government, with local governments also contributing to ensure access to healthcare for citizens, irrespective of income level. Since 2013, and with CMS’s authorization, Texas has permitted local governments to administer Local Provider Participation Funds (LPPFs). In 2021, the Biden administration’s CMS attempted to revoke Texas Medicaid’s use of LPPFs, but a preliminary injunction was issued against this effort.

LPPFs involve local governments collecting mandatory assessments from healthcare providers and transferring these funds to the state to finance Texas’s share of non-federal Medicaid funding. Federal law explicitly allows such arrangements. However, federal law also prohibits hold harmless arrangements, which guarantee healthcare providers will receive their total tax payment back through Medicaid payments. CMS recently issued an unlawful informational bulletin that would wrongly classify private contracts involving entities that contribute to an LPPF as prohibited hold harmless arrangements, even though federal law does not prohibit such private contracts.

CMS’s bulletin revealed its intent to require the Texas Health and Human Services Commission (HHSC) to provide information about these private “hold harmless arrangements” as a prerequisite for receiving federal funding, despite the HHSC’s lack of authority to do so. This could potentially endanger billions of dollars meant for Texas’s Medicaid program. The changes represent a significant departure from CMS’s previous policy and an unprecedented expansion of its authority.

To read the full complaint, click here.  

- Advertisement -

To read the motion for preliminary injunction, click here

- Advertisement -
- Advertisement -

- Advertisement -

More Articles

FDA Clears First Standalone Robotic Device for Outpatient Blood Draws

Mega Doctor News FDA - The U.S. Food and Drug Administration today authorized...

Study: Limiting Social Media Use Does Not Boost Young Adults’ Well-Being

What happens when young adults are asked to slash their social media use to 30 minutes a day? In a new set of studies, most did not follow through, and those who did cut back reported no greater improvement in well-being than their peers who used social media as usual.

Effective Ways to Banish Mosquitoes

We all know how pesky those little bugs can be, so what can you do to help keep them away?

Why Daily Recess Is Essential for Schoolchildren

As families prepare for ‘back-to-school’ time, it’s a great opportunity to evaluate how your child’s daily routine is structured. From ensuring a good start with a nutritious breakfast to encouraging appropriate amounts of homework time and sleep based on age, creating time for physical activity is also important.
- Advertisement -