CMS has given Texas health officials until December 2017 to reform the states Medicaid program, or it will begin phasing out $5.5 billion in annual payments to fund the state's safety-net hospitals, reports Houston Chronicle.
Texas is among 19 states that have chosen not to expand their Medicaid programs under the Affordable Care Act. Texas' uninsured population is comprised of about 1.5 million people who largely rely on safety-net hospitals for care.
In December 2011, CMS approved Texas' request for a 1115 waiver, which allows non-Medicaid expanded states to receive federal funding for uncompensated care costs as they consider alternative ways to expand healthcare coverage. CMS agreed to extend the program to Texas hospitals until December 2017, after which it will cease funding.
Should CMS choose to cut the uncompensated care funding, some Texas hospitals stand to loose hundreds of millions of dollars they depend upon to stay afloat, according to the article.
Texas legislators have until December 2017 to devise a new way to address and care for its uninsured population.