Congress is considering extensive budget cuts to Medicaid which would adversely impact millions of people in Texas and the U.S. In response, hospital, physician, and nursing home associations across the country are calling on Congress to protect Medicaid from budget cuts. Severe reductions in federal Medicaid spending would have a catastrophic impact in Texas, according to the Texas Hospital Association (THA).
Medicaid is the largest pay source for long-term care nationally, covering two-thirds of nursing home patients and funding two-thirds of home care spending. Medicaid covers 12.5 million Medicare beneficiaries, who receive assistance with nursing home and community-based long-term care services, Medicare premiums, and Medicare cost-sharing, according to Kaiser Family Foundation. In Texas, 60% of Medicaid spending is for elderly and disabled beneficiaries.
Drastic reductions in federal Medicaid spending would require states to increase taxes or cut benefits. Texas Medicaid is already a lean program, ranking dead-last in state Medicaid spending above the federally required minimum levels, according to THA. To make up for the loss of federal dollars, funding for optional home care programs in Texas, such as the Home and Community-Based Services Waiver program, could be reduced, resulting in longer wait periods for benefits. Furthermore, Congress is considering a per beneficiary spending cap which could result in broad cuts to health care benefits in the Texas Medicaid program.
Deep cuts to Medicaid spending would affect citizens in every congressional district in the country, yet research has shown that most Americans approve of Medicaid and have a personal connection with the program through a family member or friend. Medicaid is a vital entitlement program that provides access to essential health care services for millions of people in Texas.