Announcements
Senate Finance, Health Committees Dig Into Rate Setting For Medicaid Reimbursements
Federal Medicaid spending for Texas has almost doubled in the last decade, according to Albert Hawkins, executive commissioner of the state’s Health and Human Services Commission. He recently told a joint meeting of the Senate committees on Finance and Health and Human Services that federal spending went from $6.4 billion in 1998 to $12 billion this year.
The joint meeting, held September 19, was designed to update the committees so they can begin a review of reimbursement rate methodologies in preparation for the new legislative session, which opens January 13, 2009.
Hawkins noted that the state’s reimbursement rate methodologies are highly complex, with thousands of provider rates managed by 40 different employees of the Health and Human Services Commission. Texas rates are based on Medicaid-allowable costs, and the challenge is in attracting providers to a system of reimbursement based on costs.
Hawkins said total Medicaid spending for fiscal year 2007 was $18 billion. Acute Care made up for 61 percent of the total, long-term care accounted for 28 percent under the Department of Aging and Disability Services, and 11 percent went for prescription drugs.
Melitta Berger, of the Legislative Budget Board, told committee members that Health and Human Services was given $31.5 billion for the 2008-09 biennium, including a $1.8 billion increase in general revenue over the ‘06-07 biennium.
Senator Robert Deuell (R-Greenville) led a discussion about reducing Acute Care costs, which are comprised largely of individuals in nursing homes and long-term care facilities. Hawkins agreed with the general premise of increasing community and home-based services, which he said are found to slow the pace of disease, and keep people out of both nursing homes and emergency hospital rooms.
Both committees will work together and separately through the duration of the interim to prepare for the upcoming legislative session.