Texas Governor May Veto Nursing Home Tax Measure While Legislature Approves $122.6 Million to Ease Medicaid Application Process
Texas Gov. Rick Perry (R) has indicated that he would veto a bill that would create a $5.25 per day tax on occupied nursing home beds, the AP/Austin American-Statesman reports. The bill (SB 1839), which passed the Senate on May 10, would tax all occupied nursing home beds in an effort to increase Medicaid payments and bail out the state's financially ailing nursing homes, one-third of which have gone bankrupt. The state would use the extra revenue to draw additional federal Medicaid funding, boosting funding to nursing homes by approximately $200 million next year. As a result, nursing home advocates have criticized Perry's position on the bill. State Sen. Mike Moncrief (D), sponsor of the bill, said, "I certainly wouldn't have gone on the floor of the Senate to shed blood had I known this would have been for no reason than to address the political expediency of the governor." Moncrief said the bill "is the last lifeboat leaving a sinking ship. If we don't do something, nursing homes in Texas are going to close" (AP/Austin American-Statesman, 5/14). Lt. Gov. Bill Ratliff said he was "surprised" to learn that Perry would veto the bill, saying, "I had no indication that he had a problem with it. I think there's serious doubt about whether or where we could strip $200 million from the other priorities. The more likely result is nursing homes could be in a dire situation." But Perry spokesperson Kathy Walt said Perry had made it "very clear" that he would not pass any tax increases this legislative session (Hughes/Robison, Houston Chronicle, 5/14). Walt added that Perry saw the measure as "a tax on the most vulnerable segment of our population." Moncrief noted that nursing home legislation would be "unlikely, but not impossible," with only two weeks remaining in the legislative session (Moritz, Ft. Worth Star-Telegram, 5/14).
Budget Allocates Medicaid Funding
Meanwhile, the state Senate made headway on a "major priority" this session, beginning to finalize a budget proposal that allocates $122.6 million to "simplify" Medicaid enrollment. The funding will help ease the enrollment process for those under 5 years old, but state Rep. Garnet Coleman (D) predicted that the "final plan" would include enough funding to simplify the process for all eligible enrollees under 19 years of age (Moritz, Houston Chronicle, 5/14). In addition, legislators earmarked $542 million to cover "expected growth in Medicaid caseloads" (Ft. Worth Star-Telegram, 5/14).
Dallas Morning News Features CHIP
In other Texas health care news, the Dallas Morning News on May 14 published a feature on the state's CHIP program, describing outreach efforts and enrollees' personal experiences with the program. To read the CHIP feature, click here.
