The Texas Legislature approved a bill Monday that would both compel the state to push the Obama administration to convert Texas’ Medicaid program into a block grant and defund Planned Parenthood.
The omnibus health bill also includes a number of other controversial provisions, including plans to save $400 million over the next year by increasing the use of Medicaid managed care.
The legislation now goes to the desk of Gov. Rick Perry, who has been generally supportive of both the Medicaid reforms, as well as anti-abortion language.
When previously asked about Senate Bill 7, Perry spokeswoman Lucy Nashed would not speak specifically to pending legislation, but did comment on the governor’s broad support for block grants.
Governors like Rick Perry (R-TX), Rick Scott (R-FL), Scott Walker (R-WI) and Haley Barbour (R-MS) are touting block grants — capped allotments of money — as the solution to cut spending on their respect state Medicaid programs. However, the Center on Budget and Policy Priorities (CBPP) shows that block grants come with financial risks and costs to the states, as well as cuts to Medicaid eligibility and benefits. Additionally, providing states with block grants for Medicaid would fundamentally change how the program is funded and would ultimately undermine the Affordable Care Act.
Block Grants Fundamentally Change How Medicaid Is Funded