When the state’s new fiscal year begins on Tuesday, Texas hospitals expect to lose $27 million a day in additional Medicaid funding.
\n\nThe shortfall is the result of a decision by the Trump administration to withhold approval from Texas for about $9.8 billion in the next year from three programs, the bulk of which affects the Comprehensive Hospital Increase Reimbursement Program (CHIRP).
\n\nThis program gives hospitals additional funding to cover the difference between Medicaid rate payments and the actual costs that hospitals incur to provide services to Medicaid patients. Essentially, hospitals, which often are paid less than what they spend on Medicaid patients due to outdated payment rates set by the state, are losing out on their additional reimbursement for 2027.
\n\nLocal governmental entities collect taxes from hospitals — about $4 billion a year, according to the Texas Hospital Association — and under CHIRP, the federal government matches those funds so that Texas hospitals can then use them to cover the actual costs of providing Medicaid services. Hospitals say those CHIRP dollars are critical and if they lose that funding, they will likely have to cut services to patients.
\n\nFour million low-income Texans are enrolled in Medicaid, most of them…
Original source: https://apnews.com/business