Texas skilled nursing providers may see a $900 million general Medicaid rate increase as part of the overall state budget beginning on Sept. 1, if measures approved by the House and Senate this week are signed into law by Governor Greg Abott.
It is funding long awaited and welcomed by providers in the Lone Star state, where Medicaid reimbursement rates rank among the lowest.
“We’re 10 years since our last meager Medicaid increase and it was about that long before the previous one. We usually hover at 49th or 50th in the nation,” Ron Haney, CEO of Texas-based Cascade Health Services, told Skilled Nursing News. “What really concerns us is when we have new regulations, new staffing requirements and no funding to help offset it.”
Another measure pending approval is the continuation of a pandemic-era $19.63 daily per-patient add-on, which expired with the end of the public health emergency.
Kevin Warren, president and CEO of the Texas Health Care Association, told Skilled Nursing News that the Texas Legislature passed SB 30 that provides critical bridge funding to maintain the $19.63 Medicaid add-on until August 31, 2023.
Also, the state’s 2024-2025 budget has appropriated over $900 million in funds for nursing facility reimbursement rates in Texas, he said. Both bills are now on the governor’s desk.
“THCA members are extremely grateful for the strong leadership of both the Senate and House on recognizing the funding challenges facing long-term care facilities across Texas,” Warren said. “The long-term care profession across Texas worked collectively to educate lawmakers about the critical support needed to prevent major disruptions in care for Texans.”
LeadingAge Texas and other industry stakeholders have supported increased funding for the state’s nursing homes, as well as legislation aimed at rebuilding the long-term care workforce.
“LeadingAge Texas supports a Medicaid payment system that promotes accountability, rewards high-quality care and drives toward long-term improvement across the field,” the organization wrote in a press release. “The Legislature must ensure older Texans have access to care in their communities when they need it.”
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