Poor, Disabled, Seniors Lose In Budget Cuts

A startling and heretofore unnoticed “study” was released Friday that sets the groundwork for balancing state budget on the backs of impoverished and disabled children and seniors. The Texas Health and Human Services Commission report explores and comes just short of recommending that the state end its participation in the Medicaid to save money.

Unlike Medicare, which insures the elderly, Medicaid insures those with profound disabilities regardless of age who can’t afford private insurance and who need health care. It is, like Medicare and the Child Health Insurance Program, jointly funded from the federal and state budgets. Of the amount invested in this humanitarian aid in Texas, the feds foot 60% of the tab. What the paper suggests is that Texas turn away the federal contribution and replace its benefits with care solely funded with state money.

The Dallas Morning-News offered this capsule of some of what withdrawal would mean:

“In Texas, the program now covers 3.6 million residents, mostly children, but also low-income women who are pregnant and poor elderly and disabled adults. However, the state still has more than 6 million uninsured residents, the highest share of any state.

Today’s report said Texas Medicaid accounts for 15 percent of all personal health care spending in the state, pays the bills for two-thirds of Texas nursing home residents and finances delivery of more than half of the babies born here each year.”

So, the nation’s second-most populous state would choose to end the only health-care insurance many need but cannot afford, and dump more than 2 million of the states most vulnerable residents to “save money” so the governor can hand out more money to fat-cats who contributed to his campaigns. About half of pregnant women would lose coverage.

Who picks up the slack? That would be counties and hospital districts that are funded with local property taxes. And, as I mentioned, this is not a Texas-specific phenomenon, watch for similar moves across the country in the coming months.