Ensuring Continued Health Care Funding After Stopgap 1115 Waiver Extension

Testimony to Senate Committee on Health & Human Services

The 1115 Medicaid Waiver has provided critical funding for uncompensated care in Texas hospitals and innovative DSRIP projects – including projects to address unintended pregnancy, birth outcomes, and maternal health – in communities throughout the state. With the stopgap Waiver extension expiring at the end of 2017, next year state leaders must develop a Texas plan to expand health coverage in order to avoid a severe cut in health care funding provided through the Waiver. If the Waiver expires without a plan in place, Texas communities would face a $1.3 billion cut in health care funding in 2018 and deeper cuts in the future. It's important to note that whether or not Texas reaches a Waiver renewal agreement, and whether or not Texas accepts Medicaid expansion funding, the federal funding will not be renewed for uncompensated care for Texans who could be covered through Medicaid expansion. Texas must replace those expiring funds before 2018.

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