Abbott, governors: 'we remain committed to protecting state flexibility in Medicaid financing'

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Gov. Greg Abbott | Office of the Texas Governor

Governors Greg Abbott, Brian Kemp, Brad Little, Kim Reynolds, Jeff Landry, Mike Parson, Kevin Stitt, and Mark Gordon have appealed to President Joe Biden to safeguard the Medicaid safety net. They argue that proposed changes could adversely impact "elderly and disabled adults, pregnant women, and millions of children." The governors penned a letter to the president on April 11th urging him to reconsider and immediately disavow policies outlined in a final Informational Bulletin and a proposed rule issued by the Centers for Medicare & Medicaid Services (CMS).

"If CMS nevertheless forges ahead and implements these policies, Medicaid funding could be reduced by $48 billion each year, impacting 49 states that rely on provider taxes to bolster their Medicaid programs," said Abbott, according to Office of the Texas Governor. "Such reductions would harm critical healthcare systems serving our most vulnerable citizens, exacerbating disparities in care. As Governors, we remain committed to protecting state flexibility in Medicaid financing, which assures our ability to continue offering high quality healthcare,” the governors wrote."

The governors have expressed concerns over several developments: the Informational Bulletin titled "Health Care-Related Taxes and Hold Harmless Arrangements Involving the Redistribution of Medicaid Payments" that CMS issued on February 17, 2024, and a proposed rule for Medicaid and Children's Health Insurance Program Managed Care Access, Finance, and Quality that CMS released two months later. They assert that their stance is supported by a ruling from a Texas federal court.

In their letter, the governors cautioned that states such as Louisiana, Missouri, Texas, and Florida would bear the brunt if CMS proceeds with implementing these policies. "Texas and Florida alone rely on provider taxes to support more than $8 billion and $2.6 billion respectively in critical Medicaid funding each year," they wrote. "Such reductions would harm critical healthcare systems serving our most vulnerable citizens, exacerbating disparities in care."

According to his office's website, Governor Abbott was born and raised in North Texas. He obtained his law degree from Vanderbilt University after graduating from the University of Texas at Austin (UT). Abbott has been married to Cecilia Abbott since 1981; they have one daughter.