Feds Withhold $75M In Medicaid Funding From Texas
HOUSTON (AP) -- Federal regulators say they're denying Texas $75 million in funding for a new health care program because the state violated program rules by allowing private hospitals to receive federal dollars.
The Houston Chronicle reports the multibillion-dollar program was created with money used to reimburse hospitals for "charity care." Program rules allow a federal match for state dollars allocated to hospitals to cover the costs of patients who can't pay, but not for dollars put up by private and nonprofit hospitals.
A letter from the Texas Health and Human Services Commission said federal Medicaid inspectors found funding arrangements in the Dallas, Fort Worth and Corpus Christi areas that violated program rules. The amount of funds to be withheld could grow if the inspection team finds more funding arrangements violating rules.
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