Medicaid Fiscal Accountability Rule

Texas hospitals have made significant progress in opposing the Medicaid Fiscal Accountability Rule and appreciate the Centers for Medicare & Medicaid Services' decision to withdraw the rule for further study. 

Texas hospitals have strongly opposed the rule since it was proposed in November 2019. The proposed rule sought to limit states' ability to draw down federal Medicaid funding, jeopardizing $11 billion in Texas hospitals’ supplemental Medicaid payments in 2020 alone.

It would have increased state and local taxes, eroded the state’s control the Medicaid program and devastated the state's already fragile health care infrastructure.

The Texas Hospital Association submitted written comments to CMS, Gov. Greg Abbott and the Texas Congressional delegation and worked closely with stakeholders and state and federal leadership to have the rule withdrawn.

In March, all 36 members of the Texas Congressional delegation signed onto the bipartisan letter, led by U.S. Reps. Michael Burgess (R-Lewisville), Marc Veasey (D-Fort Worth), Pete Olson (R-Sugar Land) and Lizzie Pannill Fletcher (D-Houston), expressing concern to CMS about the expected impact of the rule on providers, patients and the Texas economy. 

Since the COVID-19 pandemic, delegation leaders of the March letter and members of the Texas Congressional delegation filed legislation and took other actions to delay implementation of the rule. Learn more from the resources below.