Datapoint: Texas Insurers Could Close Over Medicaid Awards

Controversy over Texas’ new Medicaid contract awards continue as one nonprofit insurer warns it — and others — will face closure if removed from the program. “It’s a decision by the agency that if not reversed, could effectively mean the end of Driscoll Health Plan,” Driscoll Health Plan CEO Craig Smith said at a June 19 press conference. “As a result, three-quarters of the children and pregnant mothers on Medicaid across South Texas will have their health insurance disrupted.” The state recently rejected requests by multiple insurers to reconsider the new contracts, which are slated to begin Sept. 1. “Even worse, Driscoll is not alone in this situation,” Smith continued. “HHSC is also eliminating other top quality health plans, like Cook Children’s and Texas Children’s. The ripple effect of the agency’s drastic action will force 1.8 million children and pregnant mothers to change their Medicaid insurance provider.” Driscoll currently serves 188,624 Medicaid members. The three nonprofit children’s insurers currently serve 19% of Texas’ managed Medicaid program.

Source: AIS’s Directory of Health Plans

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AIS Health Staff

AIS Health Staff

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