Biden administration drops fight over Texas’ Medicaid waiver, now in place until 2030

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Biden administration drops fight over Texas’ Medicaid waiver, now in place until 2030
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New: A federal health care program that Texas uses to help pay for health care for uninsured Texans is safe for another decade after the federal government said on Friday that it would stop fighting the Trump-era agreement to extend the program.

“It is not the best use of the federal government’s limited resources to continue to litigate this matter,” reads a letter sent Friday to state health officials from the U.S. Centers for Medicare and Medicaid Services. “This should resolve the issue without the need for further litigation and will create no disruption to the people who rely on Texas’ Medicaid program.”

Shortly after, under the Biden Administration, which has been pressuring Texas and 11 other states to expand Medicaid coverage to more people, CMS rescinded the agreement in April 2021.to reinstate it last May, saying moves to shut it down were nothing but a political ploy by President Joe Biden to pressure the state into expanding Medicaid in order to continue helping hospitals care for the uninsured.

The Friday decision means that the CMS action last April is rescinded and that the waiver extension stays in place without further litigation. Since then, the state has relied on the waiver for various programs to care for Texas’ uninsured, with Republican state leaders frequently leaning on it in their arguments against Medicaid expansion.

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