Texas inches toward Medicaid managed care

The Centers for Medicare & Medicaid Services (CMS) is drawing closer to an agreement with Texas to move its enrollees into managed care, reports Kaiser Health News.

Correspondence sent earlier this month from federal Medicaid Director Cindy Mann to the Lone Star State's associate director of Medicaid and CHIP said it had reached an agreement in principle to make the move to managed care, as well as create a special funding pool to finance hospital infrastructure and quality improvement initiatives. The pool is essentially a device meant to keep money flowing to hospitals that would otherwise be eliminated through a managed care conversion.

According to Texas officials, the program is designed to be a better match to the millions of residents expected to enroll in Medicaid and other programs with the expansion of the Affordable Care Act in 2014. However, Texas is among the 26 states suing in federal court to block the implementation of healthcare reform.

For more:
- read the Kaiser Health News article
- check out the letter

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