Feds restore billions in halted payments to Texas hospitals, but the fight over uninsured care continues

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Feds restore billions in halted payments to Texas hospitals, but the fight over uninsured care continues
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The money reimburses hospitals for the services they provide to Medicaid patients in Texas. Texas Medicaid GregAbbott HealthInsurance Hospitals AffordableCareAct healthcare

Yesenia Alvarado held her daughter, 2-year-old Melanie Almaraz, a Medicaid patient, during a 2013 visit to see Dr. Alberto Vasquez for treatment of a fever at Su Clinica Familiar in Harlingen.

But Texas had come up with its own mechanism known as the Local Provider Participation Funds, in which private hospitals set up taxing districts and sent that money through local and state governments to the U.S. Centers for Medicare and Medicaid Services. But Friday’s decision means some $7 million per day in federal funds to Texas hospitals can start flowing again while federal officials take a closer look. The decision is retroactive to September, when it was initially stalled, so the facilities will also get the funds that would have been coming in for the past six months had they not been stopped.

“We hope to continue working closely with our state and federal partners on the structural elements of these programs and a path forward that best suits the people of Texas who need our care,” Hawkins said.

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