The Biden administration was slapped with a lawsuit on Friday after Texas Attorney General Ken Paxton launched a suit countering changes to the state’s federally funded portion of Medicaid last month.
In April, the administration rescinded a Trump-era eight-year extension to provide billions of dollars in federal funds annually for Texas’ uninsured residents, which was set to expire next year.
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While the move does not revoke healthcare funding through 2022, Paxton called it an “unlawful abuse of power aimed at sovereign states.”
“The Biden Administration cannot simply breach a contract and topple Texas’s Medicaid system without warning,” he said in a Friday statement.
Texas has held a waiver agreement with the U.S. Centers for Medicare and Medicaid Services since 2011, which reimburses hospitals for the “uncompensated care” provid
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