Texas Lawmakers, Governor Back Plan to Consolidate State Oversight of Medicaid

The Texas Senate Finance Committee approved a bill (SB 1156) April 9 that would "consolidate" the administration of the state's Medicaid program by moving its oversight from the state Department of Health and to the Health and Human Services Commission (Gott, Associated Press, 4/9). The committee approval came after "[k]ey legislative leaders" and Gov. Rick Perry (R) agreed to the plan to reorganize the $7 billion Medicaid program, which currently has operations "spread out over more than a half-dozen state agencies," the Ft. Worth Star-Telegram reports. The measure would also:

Create a pilot program to assist the mentally ill in managing medications and treatments and to give them access to new medicines;
Establish a co-payment for prescription drugs purchased by Medicaid beneficiaries based on a sliding income scale, although those "with no means to pay" could still receive drugs for free; and
Establish an "oversight committee composed of three [state] senators and three [state] representatives to monitor the program" (Moritz, Ft. Worth Star-Telegram, 4/10).

According to Sen. Judith Zaffirini (D), the bill's sponsor, the overhaul would save the state money by "[e]liminating repetitive paperwork, streamlining staff and services and gaining better control of the budgeting process." Rodney Ellis (D), chair of the Senate Finance Committee, added, "Under the current rules, there are too many chefs in the Medicaid kitchen. This smart government reform will lead to greater efficiency and accountability in the Medicaid program, and improve the delivery of health care across Texas" (Associated Press, 4/9). Last week, the Texas Senate's Human Services Committee approved a bill (SB 43) that would "streamline" the Medicaid application process by eliminating face-to-face interviews and simplifying the assets test when determining Medicaid eligibility (Kaiser Daily Policy Report, 4/6). This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

Texas Lawmakers, Governor Back Plan to Consolidate State Oversight of Medicaid

More From KFF Health News