Five Reasons Healthcare Will Be the Topic to Watch This Session of the Texas Legislature
Legislators filed bills before the official start date of the 83rd Texas Legislative Session; many of the bills already filed address healthcare issues.
1. The Budget. Texas legislative leaders recently approved a self-imposed budget cap for the 2014-2015 biennium based on a conservative estimate of growth in the state’s economy, holding lawmakers to not more than a 10.71 percent increase over last session’s budget, or about $7 billion. The first order of business will be to fill the $4.7 billion hole in 2012- 2013 Medicaid funding, which if not filled, will run out by March 2013. Lawmakers may choose to apply Rainy Day funds for this purpose, but not without opposition from members who prefer a hands-off approach to the reserve. Many lawmakers intend to continue their no new taxes or tax increases stance this session. And with
the Health & Human Services Commission (HHSC) requesting additional appropriations to the tune of $6.7 billion, the budget fight will be very focused on healthcare.
2. Health Insurance Reform. Now that the Obama administration has been cleared to move forward with federal
healthcare reform rulemaking, a wave of policy change relating to health insurance is advancing. Uninsured individuals will need to obtain basic coverage by January 1, 2014, but according to Governor Perry, it won’t be through a state-run health insurance exchange. Perry also says Texas won’t be expanding eligibility for Medicaid, pointing to the long-term costs to a state that provides very little optional coverage, yet already spends nearly a third of its budget on the program. The state’s Medicaid tab will jump when the coverage mandate kicks in and those eligible for Medicaid,
but not currently enrolled, sign up.Hospital districts and counties are mulling schemes to pull down Medicaid
matching funds on their own. Add to the impending federal directives continued pressure to make health insurance more affordable and a bull’s eye on state employee benefits, and you can expect mighty battles in this area.