Biden administration says it won’t continue to game Texas’ Trump-era Medicaid waiver

The Biden administration is dropping litigation against a Texas Medicaid waiver the Trump administration approved in its final week in office, saying the year-long legal battle has overstretched federal government resources.

Last spring, the Centers for Medicaid and Medicaid Services revoked a 10-year waiver for the Texas Medicaid program that the Trump administration approved on January 15, 2021, without going through a mandatory public comment period. The provision, which extended the state’s waiver for a decade, provided significant amounts for health care providers to cover the cost of caring for uninsured patients. Texas sued the Biden administration, and in August a federal district court judge reinstated the waiver. With CMS’s decision not to challenge this judge’s decision, the provision will continue until 2030.

“The district court’s order on the preliminary injunction did not address the underlying legal issues,” CMS Administrator Chiquita Brooks-LaSure wrote in a letter to Texas. “However…CMS has concluded that it is not the best use of the federal government’s limited resources to continue to litigate this case.”

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