Congressional Democrats Try To Expand Medicaid In Texas, Elsewhere
Houston Public Media 6/17/21
Representatives from 12 states announced outside the U.S. Capital that the Cover Outstanding Vulnerable Expansion-eligible Residents (COVER) Now Act would give dollars directly to local governments and hospitals that want to help expand Medicaid. The bill allows the federal government to directly fund these local hospitals and governments in a “demonstration” program that lasts five years and can be reapplied for. Governments that elect to take the money would qualify for 100% of Medicaid funding for three years and then it would fall to 95%.
Texas receives around $3.87 billion a year from the federal government to offset uncompensated care hospitals provide to the uninsured. An extension of the program that provides that money, known as the 1115 waiver, was rescinded and the state may lose it after 2022. The move from the Biden administration was intended to pressure state lawmakers like those in Texas to finally expand Medicaid to make up for those costs. That didn’t happen though, and Texas hospitals may be hit with the bill.
