Saturday, December 04, 2010

Texas would lose $15 billion in federal funds if it opted out of Medicaid, study finds

By Dave Montgomery
Friday, Dec. 03, 2010

AUSTIN - State policymakers were warned Friday that Texas would face the loss of $15 billion in federal matching funds and would see an additional 2.6 million residents added to the ranks of the uninsured if the state opted out of the federal Medicaid program.

The findings by the Texas Health and Human Services Commission are designed to guide legislators as they examine the rising cost of Medicaid while grappling with a state budget shortfall that could exceed $20 billion.

Gov. Rick Perry and leading conservative lawmakers have suggested that Texas could fashion a less expensive and more efficient state-run healthcare program by freeing itself from burdensome Medicaid requirements.

But Rep. John Zerwas, R-Richmond, who sponsored a 2009 law that required the agency's study, said the potential downsides outlined in the report essentially rule out withdrawal from Medicaid. He said the state should concentrate on trying to press for changes in federal policy to improve the Medicaid program and give Texas a bigger proportional share of Medicaid funds.

"I don't think [opting out] of Medicaid is really viable," said the Houston-area physician. "If you dropped out today, the human and economic consequences are pretty immediate."

LINK