Greg Abbott issues dire warning over Medicaid changes

Texas Governor Greg Abbott has issued a sharp warning about proposed modifications to Medicaid, boasting they could “strip tens of millions of People in america” from entry to healthcare.

In February 2023, the Facilities for Medicare & Medicaid Services (CMS) issued a new proposed rule that would improve prolonged-standing procedures for how states fund the non-federal share of Medicaid payments. In specific, the CMS is pushing for bigger oversight of how states use of health care supplier taxes to help fund their packages.

The Medicaid program, which presents health care to just about 100 million reduced-earnings Us residents, is financed by equally the condition and federal govt. The federal authorities contributes an average 60 p.c of documented Medicaid fees.

Most states at the moment impose taxes on quite a few healthcare companies, like hospitals, nursing households and intermediate treatment amenities, to aid fund their portion of Medicaid prices.

However, the Committee for a Dependable Federal Price range has explained that states often use supplier taxes to inflate the amount of federal federal government contributions they get by simultaneously taxing companies and boosting payments to them. In carrying out so, states can report larger expenditures without obtaining to strengthen web investing.

The CMS is therefore proposing a amount of changes to the funding design to clamp down on this, like requiring company payment levels to not exceed normal business premiums.

The proposed modifications also stipulate that states will have to report to the CMS the complete dollars expended for every state-directed payment (SDP), and that states will have to comply with all federal rules about funding sources of the non-federal share as a condition of SDP acceptance.

In reaction to the proposals, Abbott urged President Joe Biden to “abandon his new Medicaid procedures” and warned they could “devastate the… basic safety net for elderly and disabled adults, pregnant girls and thousands and thousands of kids.”

In a joint letter to Biden on Thursday, Abbott and seven other point out governors wrote: “We urge you to reconsider and quickly disavow procedures provided in a ultimate Informational Bulletin and a proposed rule issued by the Facilities for Medicare & Medicaid Companies (CMS) that would devastate the Medicaid security net for aged and disabled grownups, expecting gals, and tens of millions of kids in our states and throughout the country.

“The adjustments are extremely prescriptive, administratively burdensome, and opposite to the pursuits of the Medicaid beneficiaries who get services in our states and nation.”

They added: “If CMS nonetheless forges in advance and implements these policies, Medicaid funding could be lessened by $48 billion each individual calendar year, impacting 49 states that count on provider taxes to bolster their Medicaid packages. Suffering most would be states like Louisiana, Missouri, Texas, and Florida.

“Texas and Florida by itself count on service provider taxes to help much more than $8 billion and $2.6 billion, respectively, in vital Medicaid funding each and every yr. This sort of reductions would harm critical healthcare systems serving our most vulnerable citizens, exacerbating disparities in care.”

The governors additional that they stay “fully commited to safeguarding point out versatility in Medicaid funding,” and warned that the proposed modifications “constitute an rapid risk” to it.

Along with Abbott, the letter was also signed by Brian Kemp, the governor of Georgia Brad Minor, the governor of Idaho Kim Reynolds, the governor of Iowa Jeff Landry, the governor of Louisiana Mike Parson, the governor of Missouri Kevin Stitt, the governor of Oklahoma and Mark Gordon, the governor of Wyoming.

States which includes Florida and Texas have currently sued the CMS above the agency’s calls for for nearer regulation over what happens with their company taxes.

Newsweek has contacted the White Household and the CMS for comment.