Committees:

FINANCE, CHAIR
SUNSET ADVISORY COMMISSION, CHAIR
LEGISLATIVE AUDIT COMMITTEE

PO. BOX 12068
CAPITOL 
AUSTIN, TEXAS 78711
512/463-0112

FAX: 51 21463?0923

 

LEGISLATIVE BUDGET BOARD
DISTRICT OFFICE STATE AFFAIRS
1235 s. MAIN SUITE 280 Tlhce Senate of State of Texas
GHAPEVIN E, TEXAS 76051
81 71424-3446
FAX: 817/488-6648 awe/x (e SCUM
Senate District 

September 10, 2015

Executive Commissioner Chris Traylor
Health and Human Services Commission
4900 N. Lamar 

Austin, Texas 78751

Dear Commissioner Traylor:

I am writing to reiterate my strong support for the Health and Human Services Commission (HHSC) to follow
the Le gislature's clear written instructions and intent that adjustments to Medicaid therapy rates proceed in a
manner that preserves access to these important service's.

Last year, an independent study conducted by researchers at the Texas School of Public Health concluded
that Texas Medicaid rates for pediatric acute care therapy services are signi?cantly higher than the Texas
commercial rate, commercial rates in other states, and MediCaid rates in other states. This is in addition to
research conducted by HHSC that demonstrated similar ?ndings.

As a result, the Legislature included HHSC Rider 50 in the 2016?17 General Appropriations Act, which directs
the Commission to reduce Medicaid pediatric acute care therapy rates to a more appropriate level. Rider 50
explicitly states that the Commission should consider access to care when implementing these rate

reductions. Furthermore, federal law reguz?res that in setting Medicaid rates states must preserve access to care.

We must re-align our rates to prevent taxpayers from being overcharged for these services. However, we need
to move forward in a responsible manner that complies with Rider 50 and federal law. I believe, and have
communicated to you, that the language in the rider gives the Commission the ?exibility to phase-in the rate
reduction to prevent any disruption in the delivery of these important services to children across the state.

Very truly yours,

Senator Jane Nelson

CC: Governor Greg Abbott Speaker of the House Joe Straus 
Lieutenant Governor Dan Patrick House Appropriations Comrhittee Chairman John Otto