Medicaid Funding |
Children's Health Insurance Program Funding |
Child Protective Services |
Public Health
For the 2006-07 biennium, legislators adopted a budget of $139.4
billion in state and federal funds (or "all funds" in legislative
parlance). Of the total budget, $71.6 billion, or 51 percent, is
derived from state revenue. The final budget is about 10 percent
higher than the budget adopted in 2003 - a budget that included
substantial funding reductions for health and human services,
public education, and other critical services in order to address a
$10 billion shortfall.
Compared to two years ago, health care fared reasonably well. SB
1 provides $50 billion (all funds) for health and human services.
Many feared that a tax debate would quash attempts to restore vital
Medicaid, Children's Health Insurance program (CHIP), and public
health services as legislators scraped together new monies for
school finance reform and state property tax relief. In the end,
while the legislature did not restore all cuts, it heeded calls by
medicine and other advocates to reinstate the most critical health
care services.
Medicaid Funding
The budget allocates $50 billion in all funds to health and
human services. Of that, $37.9 billion is for Medicaid, with the
federal government paying 60 percent and the state, 40 percent
($14.2 billion). Medicaid accounts for 19.8 percent of state
dollars. Some commentators questioned the increase in Medicaid
spending in SB 1 over the previous budget. It is important to note
that the growth did not stem from expanded coverage or new
benefits. Rather, additional funds will be used to restore the
benefits and services reduced or eliminated last session, cover
health care inflation, and pay for caseload growth.
The budget assumes Medicaid enrollment will grow from 2.8
million enrollees today to 3.11 million by the end of state fiscal
year (SFY) 2007, a difference of 305,000 patients, most of them
children. Texas Health and Human Services Commission (HHSC) assumes
higher growth - 3.19 million by end of SFY 2007. The average annual
Texas population growth is nearly 2 percent, or 400,000 people per
year. The most rapid growth is taking place among those who earn
less than $38,700 per year (twice the poverty level for a family of
four).
Medicaid Eligibility and Service Restorations
Highlights of Medicaid funding within SB 1, the General
Appropriations Act:
- Restores optional podiatric, vision, and mental health
services for adult Medicaid patients, 78 percent of whom are
disabled or elderly.
- Partially restores the "medically needy" program. SB 1
specifies that 75 percent of the restoration be funded via
intergovernmental transfers (IGT) from local funding entities
versus using state funds to draw down the federal match. It is
not certain that local entities will provide the funding. The
remaining 25 percent would be funded from savings anticipated
from the new Women's Health Waiver (
SB 747, described in the
Medicaid and CHIP section
).
- Restores Medicaid GME, also using IGT funds, thus providing
no certainty as to whether the money will actually
materialize.
- Creates a Medicaid "buy-in" program for Texans with
disabilities who want to work but cannot enter the job market for
fear of losing Medicaid coverage.
- Assumes $109.5 million in state savings from implementing
Integrated Care Management (ICM) for seniors or patients with
disabilities enrolled in Medicaid. (For more details, see HB 1771
under
Medical and CHIP, Integrated
Care Management.)
The Texas Legislature did not restore the 2.5 percent cut in
physician reimbursement enacted in 2003; neither was the five
percent hospital reimbursement cut restored.
Children's Health Insurance Program Funding
The total CHIP budget for 2006-07 is $1.4 billion all funds, of
which $444 million stems from state general revenue. As with
Medicaid, much of the new funding restores services eliminated in
2003 and pays for health care inflation. Since 2003, 180,000
fewer children are enrolled in CHIP. SB 1 allocates funding for an
additional 72,000 enrollees over the next two years, bringing
enrollment to 398,630 by 2007. The enrollment growth includes
increases resulting from the CHIP "perinate program" to be
implemented early in 2006. Sen. Judith Zaffirini (D-Laredo)
sponsored a budget rider giving HHSC the ability to transfer funds
to meet a CHIP caseload shortfall before establishing a waiting
list.
Highlight of CHIP funding within SB 1:
- Restores vision, dental, hospice, and mental health services
to pre-2003 levels;
- Authorizes HHSC to implement an enrollment fee versus monthly
premiums to make it easier for families to pay cost-sharing
requirements; and
- Establishes a new CHIP "perinate program" to provide prenatal
care to the unborn children of women who do not qualify for
Medicaid, including legal permanent immigrants and undocumented
immigrants. (See the
Medicaid and CHIP
section for more details.)
The legislature did not restore the 2.5 percent CHIP physician
reimbursement cut from 2003 nor the 12 months' continuous
eligibility for CHIP enrollees.
Child Protective Services
In January 2005, the governor declared reform of child
protective services (CPS) a legislative emergency. The order came
in response to numerous media reports of failures by CPS to protect
the welfare of children in its custody or whose families were under
investigation for abuse or neglect.
SB 1 increases CPS funds by $259.9 million, all funds over the
next two years. Of that, $213.6 million is from new state dollars.
The new monies will be used to hire more than 900 new caseworkers
during the next two years and establish a new health care delivery
model for foster children, including development of a medical
passport to aid in sharing of medical records. For details of CPS
reforms, see the summary of SB 6 in the
Child Health, Safety, and
Nutrition/Fitness
section.
Public Health
In general, SB 1 maintains funding levels at 2004-05 for many
services, with some targeted increases. New monies will:
- Increase the number of immunization doses and increase
availability of Hepatitis A and PCV-7 vaccines;
- Increase by 2,041 the number of low-income patients eligible
for HIV/AIDS drug funding; and
- Fund demographic growth for mental health services for
children.
Health Care Funding TMA Staff Contacts:
- Hilary Dennis, Legislative Affairs, (512) 370-1370
- Helen Kent Davis, Governmental Affairs, (512) 370-1401
Overview
|
Tax Reform
|
Scope of Practice
|
Physician Ownership
|
Inadequate Health Plan Networks
(Balanced Billing)
|
Managed Care/Insurance Reform
|
Texas State Board of Medical
Examiners Sunset and Physician Licensure
|
Agency Sunset Review
|
Corporate Practice of Medicine
|
Medicaid and CHIP
|
Indigent Care and the
Uninsured
|
Workers' Compensation
|
Professional Liability Reform
|
Medical Education/Workforce
|
Child Health, Safety, and
Nutrition/Fitness
|
Public Health
|
Border Health
|
Rural Health
|
Mental Health
|
Trauma/EMS
|
Prescription Drugs
|
Medical Science
|
Long-Term Care
|
Abortion
|
Transplantation/Organ Donation
|
Table of Contents