Texas Medicaid

The announcement ends a nearly year-long dispute with the Centers For Medicare and Medicaid Services over the funding to Texas hospitals, which were slated to lose $27 million a day.

Starting Sept. 1, the Trump administration is withholding about $9.8 billion in extra funding that helps hospitals cover the difference between Medicaid payments and the actual cost of services.

Data shared by the state during stakeholder meetings reveals Texas' backlog of Medicaid applications grew by more than 209,000 between January and August – while the backlog for the Supplemental Nutrition Assistance Program, or SNAP, grew by more than 146,000. Advocates and state officials said new SNAP accuracy requirements might be the cause.

State data shows more than 40,000 pregnant Texans waited more than a month for the state to process their Medicaid applications — with more than half waiting more than 60 days. An advocacy group said delays in applications getting processed can combine with issues getting appointments and can lead to delayed prenatal care.

Texans with disabilities can wait almost two decades for certain Medicaid programs. During a House Human Services Committee public hearing Tuesday, advocates and some state lawmakers said they worry what long wait times mean for the nearly 200,000 Texans on "interest lists" for services.

Texas Attorney General Ken Paxton's office said has launched investigations into "dozens" of Medicaid providers for alleged fraud — based on data released by the Department of Government Efficiency, or DOGE. In a statement released Tuesday, Paxton's office did not specify which providers, or how many, would be investigated.

A proposed rule would allow some children to qualify for the Medically Dependent Children Program — a Medicaid program that offers home- and community-based services to children with complex medical needs — without needing a nursing facility stay. But, advocates said the language is too "narrow" and could hinder providers.

The Texas Legislature at least partially implemented less than a third of recommendations from the state's 2024 Children's Behavioral Health Strategic Plan, according to a recent report. Many of the recommendations focus on increasing access to services that keep children in their homes or communities instead of institutional settings.

Texas proposed increases to Medicaid reimbursement rates for certain ambulance services. During a public rate hearing, providers said the higher rates could help maintain access to critical services, especially in rural areas.

In a letter sent to state officials Friday, Texas Gov. Greg Abbott said he wants state agencies to investigate the Medicaid program after the Trump administration identified potential fraud in other states. He directed the agencies to implement several additional anti-fraud measures in the program.