Texas Considers Medicaid Withdrawal

Texas Insider Report: DALLAS, Texas – Some Republican lawmakers in Texas are proposing an unprecedented solution to the state’s estimated $25 billion budget shortfall: dropping out of the federal Medicaid program, says the New York Times.

  • The Heritage Foundation estimates Texas could save $60 billion from 2013 to 2019 by opting out of Medicaid and the Children’s Health Insurance Program (CHIP), dropping coverage for acute care but continuing to finance long-term care services.
  • The Texas Health and Human Services Commission, which has 3.6 million children, people with disabilities and impoverished Texans enrolled in Medicaid and CHIP, will release its own study on the effect of ending the state’s participation in the federal match program at some point between now and January.

State Senator Jane Nelson, who heads the Senate Public Health Committee, said dropping out of Medicaid was worth considering — but only if it made fiscal sense without jeopardizing care.

  • Currently, the Texas program costs $40 billion for a period of two years, with the federal government paying 60 percent of the bill.
  • As a result of federal health care changes, Ms. Nelson said, millions of additional Texans will be eligible for Medicaid.

“I want to know whether our current Medicaid enrollees, and there certainly could be millions more by 2014, could be served more cost efficiently and see better outcomes in a state run program,” she said.

Source: Emily Ramshaw, “Texas Considers Medicaid Withdrawal,” November 6, 2010.


  1. Jerry, that is a very informative read about Joe Straus. Thanks for the link.

    If Joe Straus is elected the Texas Speaker of the House again, then we all know who is really running Texas………Rinos and Demoncrats. :-(

  2. Teresa is right on the money!!!

    Jack, for anyone to take my (or your) money by force and give it to someone else FOR ANY REASON is theft, even if the government does it.. However, when individuals, churches, charities, foundations, etc. help support people in need, it is a gift of the heart. No one is saying that you cannot start a charity or foundation, or that you cannot help someone on a personal basis;…….. just that it is not government’s role; it’s the individual’s role. We have somehow come to depend on the government (taxpayers) to do everything in our lives, diminishing the individual’s responsibility and generous nature. When we lean on the taxpayers for every need, then we become dependent on the rule of man, rather than the rule of law. Since when should a small office staff somewhere in the government decide on who gets how many dollars? it should never be their decision. It should be yours! And mine!

  3. The first thing they always want to do is cut what benefits/helps people. Why can’t they start with government regulatory agencies, their inflated salaries, and special interest funding?

  4. I’d like to see a bill that will prevent Texas from contributing financially to ANY AND ALL FUTURE BAILOUTS/STIMULUS OF ANY KIND…CORPORATE, CITIZEN MORTGAGES, OR THE STATES OF CALIFORNIA, ILLINOIS, NEW YORK, ETC.

    Come on State Legislators….uphold the oath you swear to uphold. You are required to uphold the Constitution, which means creating state barriers to federal usurpations of our life, liberty, and property (i.e. wealth).

    Let’s see some genuine, meaningful CONSTITUTIONAL legislation….not the fluffy, useless stuff we see so-called “conservative” Senator Nelson proposing.

  5. If this were done, Texas would be far, far better off for several reasons:

    -There would be no federal strings attached. Texas could establish its own criteria for who is eligible to receive benefits, and also better assess that the recipients are truly needy.

    -Texans would be in a much better position to monitor how the money is being managed. Greater transparency. Therefore, waste, fraud, and abuse now undetectable at the federal level would be eliminated. Millions would be saved.

  6. Come on Jane let’s do something significant and twist the tail of the demon.
    You want power you need to USE or loose it.
    Of Course I am sure you staff is better qualified than the Heritage Foundation. NOT

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