Crenshaw Takes on Biden Administration Efforts to Target Texas Medicaid and Texas Hospitals

WASHINGTON, DC – Congressman Dan Crenshaw (R-TX02) has criticized the Biden administration's efforts to target Texas Medicaid and Texas hospitals through the Centers for Medicaid Services (CMS). During a House Energy and Commerce Health Subcommittee hearing, Rep. Crenshaw questioned CMS Deputy Administrator Daniel Tsai about the agency's actions, which could have significant financial implications for Texas and its residents.

Rep. Crenshaw highlighted the disparity in treatment between states that do not participate in the Medicaid expansion program, particularly focusing on Texas, Missouri, and Florida, all of which are Republican-led states. He pointed out that CMS was attempting audits and implementing new interpretations of Medicaid financing rules that would cost Texas billions of dollars and potentially increase healthcare costs for constituents.

In his remarks, Rep. Crenshaw stated, "There is generally a philosophical debate around how states should administer Medicaid... CMS is actually targeting states as a result of that disagreement." He expressed concerns that the new interpretation of state financing rules by CMS was a tactic to push states like Texas into Medicaid expansion.

The State of Texas, along with many elected officials and Texas hospitals, has raised concerns about CMS' authority to change state financing requirements and the potential impact on access to care. Many Texas Congressional offices have also voiced similar worries through letters to CMS.

CMS recently issued an informational bulletin indicating that enforcement of newly implemented provisions related to financing will begin in 2028. However, Texas officials believe that CMS is misinterpreting current law and exceeding its regulatory authority. Legal actions are being taken in Texas to challenge these provisions, with an injunction currently preventing CMS from enforcing the new rules.

This is not the first time such challenges have arisen. In 2020, similar financing rules proposed by CMS were met with opposition from Texas Governor Abbott and Lt. Governor Patrick, as they would have imposed substantial costs on the state and its residents.

The ongoing dispute between Texas and CMS underscores the broader debate on Medicaid administration and highlights the complexities surrounding healthcare financing and access in the United States.