HBA-JEK, CCH C.S.H.C.R. 138 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.C.R. 138 By: Wohlgemuth Public Health 4/23/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Current federal law requires states to provide certain health care benefits through Medicaid to qualify for federal matching funds. Over the years, Medicaid has changed from a narrowly-defined basic medical assistance program into a conglomeration of agencies with a complex system of eligibility requirements. Medicaid appropriations now constitute almost one-quarter of Texas' biennial budget in all funds, yet many Texans remain without health insurance. Federal Medicaid requirements leave states with little flexibility to develop innovative methods of providing cost-effective health care services to low-income elderly persons, persons with disabilities, and children. In 1996, the United States Congress considered returning Medicaid funds to states as block grants. Providing Medicaid funds as a block grant with consideration for population growth and demographics would offer Texas the flexibility needed to provide better access to health care. C.S.H.C.R. 138 requests the U.S. Congress to provide Medicaid funds to Texas in the form of a block grant. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.C.R. 138 requests the United States Congress to provide Medicaid funds to Texas in the form of a block grant. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.C.R. 138 differs from the original resolution by clarifying that population growth, medical inflation, and expanded eligibility are the reasons Medicaid has grown in Texas and providing that a block grant with consideration for population growth and demographics would offer the state increased flexibility and the opportunity to provide better access to quality health care.