Texas Faces Loss of Federal Funding as 2.1 Million Medicaid Recipients Lose Coverage
2.1 Million Texans Lose Medicaid Amid Delays, Risking $8.4 Million in SNAP Funding
Federal agencies have issued a stern warning to Texas stating that the state is failing to meet federal requirements for processing Medicaid and SNAP applications leading to significant delays and backlogs, according to the published article of THE LATIN TIMES. The Centers for Medicaid and Children’s Health Insurance Program (CHIP) services and the U.S. Department of Agriculture (USDA) have demanded that the Texas Health and Human Services Commission (HHSC) devise a plan to rectify these issues or risk losing critical federal funding. This warning comes after Texas removed over a million Americans from Medicaid in the past year due to procedural reasons with many potentially still eligible for coverage. The backlog issue which began escalating in March 2022 due to staffing shortages has severely impacted both Medicaid and SNAP recipients. Despite efforts to hire more staff and reduce the backlog, the problem has worsened.
Federal Agencies Warn Texas: Fix Medicaid and SNAP Backlogs Affecting 2.1 Million People or Lose Funding
As of April approximately 2.1 million Texans lost their Medicaid coverage with nearly 1.4 million of these cases due to procedural issues such as outdated information. This has caused significant delays with about 40% of Medicaid applications taking longer than the federally mandated 45-day processing period. Similarly the USDA has threatened to suspend nearly $8.4 million in SNAP funds if the HHSC fails to comply with federal requirements with over 90,000 SNAP applications currently backlogged. U.S. Rep. Lloyd Doggett D-Austin criticized the state leadership attributing the failures to “backlogs, delays, errors and failing leadership” and highlighting the dire consequences for families in need. In response HHSC spokesperson Jose Andres Araiza stated that the agency is taking all possible actions to expedite benefits for eligible Texans. The HHSC estimates that it will be in full compliance by September 1, 2025 but until then the state faces the risk of losing vital federal funds and leaving many Texans without essential health and food benefits.
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