How Republican Medicaid cuts could impact Texas

HOUSTON – The Houston Chronicle reports that Texas hospitals are facing a freeze in billions of dollars in federal Medicaid funding under a budget proposal introduced by House Republican leaders Sunday night. Republicans are moving to limit access to a tax loophole that Texas and other states have used to tap extra Medicaid dollars for hospitals and medical providers. Texas hospitals would still be able to use so-called provider taxes to access higher federal reimbursements, but they couldn’t be expanded, even as healthcare expenses continue to rise. “Ultimately it’s a cut to hospitals and other health care providers,” said Darbin Wofford, deputy director of health care at the non-profit Third Way. “As hospitals costs grow and states want to increase base payments or supplemental payments, now you’re tying the hands of the states.”

The cuts come as House Republicans move to cut federal spending in line with President Donald Trump’s plan to extend and expand tax cuts passed during his first term, which are set to expire later this year. The proposal Sunday also included a work requirements for Medicaid recipients, along with new protocols for patients to prove their eligibility. Rep. Brett Guthrie, R-Ky., chairman of the House Energy and Commerce Committee, defended the proposal as strengthening Medicaid for, “for children, mothers, people with disabilities and the elderly—for whom the program was designed.” Democrats attacked the move, citing analysis by the Congressional Budget Office the changes to Medicaid would result in 8.6 million Americans losing coverage. “These would be devastating cuts, especially in a tough economy that’s shrinking,” said U.S. Rep. Joaquin Castro, D-San Antonio. The Medicaid cuts did not go as far as many Republicans would have liked. U.S. Rep. Chip Roy, R-San Antonio, criticized the budget proposal Monday morning as subsidizing, “healthy, able-bodied adults, corrupt blue states, and monopoly hospital CEOs.” “I sure hope House & Senate leadership are coming up with a backup plan…. because I’m not here to rack up an additional $20 trillion in debt over 10 years,” he wrote.