Feds give Texas a short-term reprieve in impasse over billions in Medicaid funding

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Feds give Texas a short-term reprieve in impasse over billions in Medicaid funding
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Approval issued Friday extends through August and provides up to $3.3 billion in federal...

Registered nurse Krista Rozell dons personal protective equipment as she prepares to see a patient at Texas Emergency Care Center on Wednesday, April 22, 2020 in Atascocita. The Trump administration approved Tuesday to allow freestanding emergency rooms in Texas to apply for certification as a Medicaid-certified hospital.

In a letter to the state, the federal Centers for Medicare and Medicaid said it reserved the right to deny “any specific Medicaid financing mechanism.” The agency has questioned for months the legality of how Texas funds its state match. In several counties, hospitals group together to put up the cash and then reportedly pay each other off later when they receive enhanced waiver payments.

The state sued the Biden administration last year over its decision to revoke a massive, 10-year waiver extension, made in the final days of the Trump presidency, and both state and federal health officials have been at odds over the matching funds scheme, first approved by the state Legislature in 2014.

The extension reversal last year divided hospital and patient advocates, many of whom are uneasy about the state’s increasing dependence on waiver dollars as a solution for the state’s indigent care problem. Texas has both the biggest uninsured population — about 5 million people — and the highest uninsured rate of any state.

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