Healthcare cuts loom in Texas; Mich. keeps Medicaid rates steady

Funding for Texas health and human services programs would be cut by 17.2%, or $11.3 billion, over the next two fiscal years under an agreement worked out by lawmakers from both houses of the state Legislature, according to published reports. In Michigan, however, a budget deal covering fiscal 2012 maintains Medicaid rates, according to healthcare industry lobbying groups.

The Texas cuts include an 8% reduction in Medicaid fee-for-services reimbursements and a 23% reduction in trauma funding for some hospitals, according to the Texas Hospital Association. A conference committee report, which bridges the gap in the original budget plans passed by the state House and Senate, was approved earlier Thursday, setting the stage for members of both houses to vote on the deal before Monday's deadline for producing a state budget, according to the THA.

In Michigan, besides maintaining Medicaid rates, the final agreement for the Department of Community Health budget trimmed a planned 40% cut in graduate medical education to a 9% cut, according to the Partnership for Michigan's Health, which consists of the Michigan Health & Hospital Association, the Michigan Osteopathic Association and the Michigan State Medical Society. The heads of all three associations praised the budget agreement. Both houses of the Michigan Legislature have approved the budget. Gov. Rick Snyder is expected to sign it into law.