Texas needs direction on a health coverage solution this session. Coverage improves health, productivity and economic growth, and can be cost-effective.
BUT: Texas’ uninsured rate is on the rise.
19% of non-elderly Texans (4.7 million of our neighbors) are uninsured compared to 11% nationally. Increased uninsured costs puts more pressure costs on Texas’ healthcare and hospitals systems as unfunded healthcare costs escalate.
AND: Current funding for our uninsured Texans is being cut or at risk.
Waiver funding for innovation and coverage – being eliminated.
Waiver funding in the Delivery System Reform Improvement Program (DSRIP) will phase down starting this October, and end in 2022. Forty percent of those receiving care from DSRIP funding are uninsured – and will lose care unless other options are created.
Waiver Uncompensated Care Funding – AT RISK
Waiver funding for Uncompensated Care is at risk while it’s being negotiated with the federal Centers for Medicare and Medicaid Services (CMS). CMS required a change in how UC funding is determined. While funding will more closely target uninsured Texans, total funds may be reduced. UC funding amounts are unknown until later this year.
DSH Cuts – $4 billion nationally and $400 million in Texas starting in 2020.
Disproportionate Share hospital (DSH) funding is used to help offset costs for of care for uninsured Texans and for low Medicaid hospital rates. Texas 2018 DSH payments were $1.9 billion dollars. Federal law requires cuts of $4 billion nationally in 2020 and then $8 billion a year until 2025 – reducing funding for Texas and for hospitals help care for uninsured and vulnerable Texans.