Who is eligible
The aged, blind, and disabled. Also, parents with dependent children are eligible with household incomes up to 15% of FPL. Children are eligible for Medicaid or CHIP with household incomes up to 201% of FPL, and pregnant women are eligible with household incomes up to 198% of FPL.
- healthinsurance.org contributor
- September 26, 2016
Texas has not expanded Medicaid under the ACA. And they’re tied with Alabama for having the most stringent eligibility guidelines in the country for non-disabled adults. As a result, Texas has the biggest coverage gap in the country, with 766,000 residents ineligible for Medicaid and also ineligible for premium subsidies to offset the cost of private coverage in the exchange. There are almost 3.1 million people in the coverage gap across the 19 states that have not yet expanded their Medicaid programs, and nearly a quarter of them are in Texas.
As the ACA was written, it called for Medicaid expansion in every state for legally-present residents with incomes up to 133 percent of poverty. But in 2012, the Supreme Court ruled that states could not be penalized for opting out of expansion, and Texas is one of 23 states that has thus far chosen to keep their pre-2014 Medicaid eligibility rules.
During the 2013 legislative session, Republican John Zerwas sponsored HB3791, which would have directed the state to craft a “Texas solution” to Medicaid expansion. But it did not pass. The bill called for reforming the state’s Medicaid system while also accepting federal funding to expand the program. It also included “personal responsibility” measures like copays and deductibles, and would have included premium assistance programs to help people purchase private insurance as a preferable alternative to traditional Medicaid.
Who is eligible?
In addition to the aged, blind, and disabled, the following populations are eligible:
- Adults without dependent children are not eligible at all (this is generally the case in states that have not expanded Medicaid) unless they’re disabled.
- Adults with dependent children are only eligible if their household income doesn’t exceed 18 percent of poverty level. This amounts to about $3,600 a year for a family of three, and is tied with Alabama as the lowest threshold in the country.
- Children are eligible for either Medicaid or CHIP if their household incomes are up to 201 percent of poverty (this is among the lowest limits in the country, although there are a handful of states with lower eligibility thresholds for children’s Medicaid and CHIP).
- Pregnant women are eligible for Medicaid if their household income does not exceed 198 percent of poverty.
The state also offers Texas Health Insurance Premium Payment (HIPP) which is a program that lets people with at least one Medicaid-eligible family member opt for employer-sponsored health insurance if it’s available, and receive assistance with the premiums through the Medicaid program (premium assistance programs are available in most states).
How do I enroll?
- You can enroll through HealthCare.gov, either online or by phone at 1-800-318-2596.
- You can enroll through the Medicaid website maintained by the Texas Health and Human Services Commission.
- You can also download and print a paper application, or request that one be mailed to you, by using this page on the Texas Medicaid website.
Despite the fact that Texas opted against using federal funds to expand Medicaid (the federal government would have fully funded the cost of covering newly-eligible enrollees through 2016, and would always cover at least 90 percent of the cost of their care), the state still enrolled 141,494 people in Medicaid and CHIP through Healthcare.gov from October 2013 through April 2014. These people were eligible under the state’s existing guidelines, but hadn’t enrolled prior to October 2013.
From late 2013 to July 2015, total Medicaid/CHIP enrollment in Texas grew by only 4 percent, adding a net 192,441 people to the program. Texas has 4.6 million people enrolled in Medicaid/CHIP – second only to California, where more than 12 million people are enrolled (California expanded Medicaid under the ACA, and enrollment has grown by 38 percent in the last two years).
If Texas were to expand Medicaid, it’s estimated that 1,186,000 people would be newly-eligible for coverage. Of those people, 766,000 are currently in the coverage gap and have no realistic access to health insurance at all. They don’t qualify for Medicaid, but their incomes are under the poverty level which means they are not eligible for subsidies in the exchange.
Prior to 2014, Texas had the highest uninsured rate in the country, with 27 percent of its residents lacking coverage. According to a Gallup poll, that number had only fallen to 24 percent by mid-2014, and to 20.8 percent by the first half of 2015. Texas is still at the top of the list in terms of the percentage of uninsured residents, and the only state that still has more than one in five people without health coverage.
Missing out on billions in federal funding
Over the next decade, if Texas continues to reject Medicaid expansion, the state will miss out on $100 billion in federal funding that would otherwise have flowed to the state to provide medical care for their low income residents. And in addition, the state’s emergency rooms are providing $5.5 billion in uncompensated care each year, treating patients who don’t have health insurance. If Medicaid were expanded, uncompensated care would drop considerably, so hospitals and business groups across the state have been pressuring lawmakers to relent on their opposition to Medicaid expansion.
Because Texas has refused to expand Medicaid, the federal government has warned the state that continued access to federal funding to help cover uncompensated care is in jeopardy (since Medicaid expansion would solve much of the uncompensated care problem). But Governor Greg Abbott has continued to reject Medicaid expansion, and described the federal government’s tactics as “coercive.”
Since residents in states not expanding Medicaid still have to pay federal taxes, there will be a significant outflow from Texas residents to fund Medicaid expansion in other states. Over a decade, Texas residents will pay $36.2 billion in federal taxes that will be used to pay for Medicaid expansion in other states. This is by far the highest of any state – the next highest is Florida, where residents will pay just over $20 billion to pay for other states’ Medicaid expansion by 2022 (this data was compiled in 2014, when it was estimated that Texas would miss out on $65.6 billion in federal funding over a decade of refusing to expand Medicaid; updated information indicates that Texas will actually be leaving $100 billion on the table over a decade by rejecting Medicaid expansion).
Will Texas expand coverage?
It’s possible that Texas leadership will eventually get on board with Medicaid expansion, especially given how much money they’re leaving on the table by rejecting federal funding to expand coverage. Until then, the cost of uncompensated care in Texas hospitals is roughly $5.5 billion a year, and it’s largely paid by tax dollars and higher health insurance premiums for people who do have coverage.
Outgoing Governor Rick Perry repeatedly rejected Medicaid expansion. During the 2014 Governor’s race, Republican Greg Abbott (who won by a significant margin) agreed with Perry and expressed his opposition to accepting federal funding to expand Medicaid (both men claim that the eventual 10 percent of the cost that the state would pay would be too much for the budget). Democratic candidate Wendy Davis was in favor of Medicaid expansion in Texas, but she lost the election.
However, in late 2014, Gov-elect Abbott expressed interest in Utah’s Medicaid expansion waiver (a year later, Utah’s legislature still has not come to an agreement on Medicaid expansion). But while that instilled hope that Abbott might soften on his stance towards Medicaid expansion, he remains opposed to it as of late 2015.
In 2013, Republican lawmakers in Texas passed a measure that requires the state Health and Human Services Commission to receive approval from the legislature before any future Medicaid expansion decisions could be made. So ultimately, even if Abbott were to support Medicaid expansion, the decision rests with the Texas Legislature, which makes expansion very unlikely in the near future.
But in November 2014, a 15-member board of medical professionals appointed by Governor Perry recommended that the state move forward with Medicaid expansion. The “Texas Solution” from 2013’s legislative session might eventually gain more traction since the Texas Institute of Health Care Quality and Efficiency board has recommended Medicaid expansion as a solution to what they called an “unacceptable” number of people without health insurance in Texas.