On April 16, 2021, the Centers for Medicare & Medicaid Services rescinded approval for changes to Texas’ Medicaid 1115 waivers. A 10 year extension had been approved of these Medicaid waivers, which provide Texas more than $11 billion in federal funding per year for uncompensated care. The current waiver is set to expire on September 30, 2022.
The Washington Post, citing two federal health officials, said the decision was a bid to push Texas toward expanding Medicaid to cover more low-income adults, a move the state and eleven others have resisted. The 1115 waiver reimburses hospitals for the “uncompensated care” they provide to patients without health insurance and pays for innovative health care projects that serve low-income Texans, often for mental health services. The extension — worth billions of dollars a year — would have continued hospital reimbursements until September 2030, but allowed the innovation fund to expire this year.