Governor Abbott, HHSC Secure $2.67 Billion In Federal Funding for Texas Hospitals
Governor Greg Abbott and the Texas Health and Human Services Commission (HHSC) today announced that $2.67 billion in federal funding has been approved to support Texas hospitals that provide care for people receiving Medicaid. This is a $1.07 billion increase from the previous State Fiscal Year (SFY) 2020.
The Uniform Hospital Rate Increase Program (UHRIP) is a statewide program that provides for increased Medicaid payments to hospitals for inpatient and outpatient services provided to persons with Medicaid. The program aims to reduce the Medicaid shortfall for hospitals that serve people who receive Medicaid. The Centers for Medicare and Medicaid Services approved the estimated UHRIP pool size for SFY 2021 at $2.67 billion, up from $1.6 billion in SFY 2020.
"This federal funding is a crucial source of support for Texas hospitals that provide care for Medicaid patients," said Governor Abbott. "As we respond to the COVID-19 pandemic, the State is committed to ensuring that our hospitals have the resources they need to continue providing care to Texans across the state."
"Hospitals in Texas are on the front lines of care and prevention at all times, providing critical emergency and intensive care for people, including those with COVID-19," Texas HHSC Executive Commissioner Phil Wilson said. "This federal funding is one way we can make sure hospitals have sufficient resources to provide quality care to people receiving Medicaid."
Through UHRIP, Texas Medicaid managed care organizations (MCOs) receive additional funding through their monthly capitation rate from HHSC and are directed to increase payment rates for certain hospitals. As designed, eligible hospitals receive a percent increase paid on claims submitted to a Medicaid MCO.
The UHRIP program, which is now in its third year, is a uniform rate increase and applies to all hospitals in a hospital class in a managed care service delivery area. Individual hospitals do not have to apply for the program; HHSC receives a single application from a service delivery area that is submitted on behalf of all SDAs. HHSC's goal is to maintain SFY 2020 reimbursement rates for most hospital classes and to increase reimbursement rates up to Medicare reimbursement levels for the hospitals that remained below them. For more information about UHRIP, visit the HHSC website.