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Gov. Perry fears feds won't pay all of Medicaid costs

By J. Lyn Carl, GalleryWatch.com

Austin, TX –

Gov. Rick Perry would probably never admit that State Comptroller Carole Keeton Strayhorn just might be right. But it could be starting to look that way.

Last week, Strayhorn closed out the FY 2005 state books and announced the state has a $1.2 billion surplus. She urged Perry to call a three-day special session of the State Legislature to appropriate the funds to help Texas' education system that is growing with the influx of Hurricane Katrina evacuees being enrolled daily, and to help security and health providers deal with the disaster relief effort. Perry's office responded that it was unnecessary, as the federal government would reimburse Texas 100 percent for the costs the state incurred.

"There is not a need for a special session. The governor does not see a need at this time to ask state government to pay for something the federal government has said it would pay for," Perry spokesman Robert Black told the Dallas Morning News last week.

Now comes word today that Perry has asked Health and Human Services Secretary Mike Leavitt, who last week declared a health emergency in the state, for assurances that Texas would get 100 percent reimbursement for the cost of providing Medicaid and other services to the more than 200,000 Hurricane Katrina evacuees that were evacuated to Texas.

Perry's office said the governor is following up on "early indications" from today that the Centers for Medicaid and Medicare Services planned to ask Texas to absorb the normal state match for providing Medicaid services. In response, Perry penned a letter to Leavitt urging that the federal government should pay the full costs.

"Clearly, no state in America could absorb the tremendous financial costs associated with meeting this public health challenge under current guidelines that require states to pay a portion of Medicaid coverage," Perry said in his letter to Leavitt. "Without the guarantee of total federal funding for Medicaid services for evacuees in Texas, Texas taxpayers will be forced to bear a financial burden that, in effect, punishes them for opening their hearts and homes to fellow Americans in need."

The governor's office said Texas could be out millions in state taxpayer money if it has to meet the matching requirement on Medicaid services for the evacuees from Louisiana, most of whom the Federal Emergency Management Agency (FEMA) and Louisiana state officials asked the state to house.

In his letter, Perry also asked Leavitt to allow Texas the necessary flexibility to ensure that Louisiana storm survivors in Texas get the health care they need.

"Without full federal indemnification, Texas will have to continue to access Louisiana client eligibility files and enroll thousands of Texas physicians, hospitals, clinics, pharmacies, and other providers into Louisiana's Medicaid program," Perry wrote. "If the current rules remain in place, this would be the only economically feasible option for Texas." The governor said that would force thousands of evacuees to wait for critically needed care. "Additionally, it seems extremely unlikely that Louisiana, given the enormity of the burden the state is facing, will be able to pay the incoming Medicaid bills," wrote Perry.

On Sept. 1, Perry requested an Emergency Declaration for Texas, which President George W. Bush approved, making Texas eligible for a portion of the $10.5 billion in federal aid passed by Congress. Perry's office announced that the state and all 254 counties would be eligible for 100 percent reimbursement of costs associated with providing aid to hurricane evacuees from other states.

While the number of evacuees in Texas is declining as many are being reunited with family and friends, the Governor's Office estimates that 97,000 evacuees are being housed in Red Cross, civic and faith-based shelters, with an additional 105,000 evacuees in Texas hotels and other locations. Texas is awaiting a final decision from FEMA to authorize the payment for lodging for individuals who are in hotels and running out of money.

If the federal government refuses to absolve Texas of the state match regarding providing Medicaid and other services, part of that $1.2 billion state surplus might be the state's saving grace. But it will take a special session of the Legislature to appropriate it.

In the meantime, the Governor's Office lists the following summary of major state actions through today in assisting Hurricane Katrina evacuees:

Education

The Texas Education Agency (TEA) is providing assistance to local schools to assist evacuees in registering for school. The agency has established a toll-free hotline to assist parents who evacuated from Louisiana, Alabama and Mississippi.

Texas public schools report they have enrolled at least 10,915 school-age evacuees in classes.

TEA also established a toll-free number for Louisiana teachers seeking teaching opportunities in Texas.

The Higher Education Coordinating Board is assisting Louisiana residents enrolling in Texas colleges and universities. As a result of the disaster declaration, college students displaced by Hurricane Katrina are eligible for in-state tuition rates at Texas colleges and universities.

Job training and placement

The Texas Workforce Commission is assisting Louisiana workers who have lost their jobs due to Hurricane Katrina. They can apply for Disaster Unemployment Assistance (DUA). Employers wishing to hire displaced Louisiana workers also have a toll free number set up that they can call.

The U.S. Department of Labor has made up to $75 million available to the Texas Workforce Commission in helping Louisiana evacuees find jobs.

Housing

FEMA has authorized cities and counties to pay the travel expenses of evacuees looking at permanent housing options with family/friends in cities around the United States.

FEMA has authorized cities and counties to pay for temporary housing assistance for evacuees from 12-18 months (ie. apartments, hotels).

FEMA began distributing debit cards for $2,000 to adult evacuees. Distribution began at the Astrodome in Houston and will occur at other shelters throughout the state as FEMA sets up the debit card process in other locations.

The Office of Rural Community Affairs has made $1 million in disaster relief funds available to rural Texas cities and counties providing shelter to victims of the storm. Grants will provide a maximum of $50,000 per shelter for improvements and renovations to address emergency shelter needs related to the hurricane disaster. Available funds will be on a "first-come, first-serve" basis. The application is posted on the Texas Office of Rural Community Affairs home page.

Perry has issued an Executive Order suspending both the state and local hotel/motel taxes for the next 60 days for Louisiana evacuees. In some cities, that could mean as much as a 17 percent reduction in the costs.

The IRS has approved the waiver request submitted by Perry that will allow an estimated 18,000 vacant income eligible housing units to be used by Louisianans displaced by Hurricane Katrina.

State officials also are working with the Texas Apartment Association to identify other vacant apartments that could be used for long-term Louisiana residents.

Health and Human Services

The Health and Human Services Commission (HHSC) is helping identify food stamp eligible individuals and those who need prescription drug support. HHSC has provided Texas pharmacies and providers information on how to assist Louisiana, Mississippi and Alabama residents on Medicaid who need to fill their prescriptions or obtain services in Texas. Participating chain pharmacy locations include: CVS, RiteAid, Walgreens, Wal-Mart, HEB and Kroger.

HHSC has provided more than 60,000 Louisiana families with emergency food stamps over the past week. HHSC developed a rapid application process to speed the processing of the cases and will begin using the new process today. HHSC has established offices in the Disaster Recovery Centers in Houston, Dallas, San Antonio, Austin and Beaumont.

The Texas Department of State Health Services (DSHS) is assessing the long term/short term medical care needs and other special arrangements for evacuees who are hospital patients, medically fragile, injured, ill or have other special needs.

DSHS is providing more than 800 WIC (Women, Infants and Children Program) clients access to food and nutrition benefits in Texas. DSHS is expediting licensing for certain healthcare professionals, including respiratory care practitioners, medical radiological technologists and social workers.

Adult Protective Services (APS) maintains an established presence in all of the major shelters around the state. APS staff are working to place elderly and "special needs" adults.

Child Protective Services (CPS) has staff in all major shelters and several smaller shelters. CPS staff continue to be in regular contact with Louisiana CPS staff. Louisiana CPS has asked Texas CPS and law enforcement to receive the children and ensure proper identification of an adult taking custody. Louisiana CPS is handling background checks and the National Center for Missing and Exploited Children is overseeing the flights.

Statewide Intake is receiving calls regarding missing children and is referencing www.missingkids.com / 1-800-THE-LOST prior to forwarding the inquiry to CPS field staff.

The Texas Department of Assistive and Rehabilitative Services (DARS) is providing shelters with wheelchairs and durable medical equipment. DARS also provides interpreter services for deaf and hard of hearing evacuees.

Additional Assistance

Perry has activated the OneStar Foundation to act as a volunteer/donation clearinghouse for anyone in the country wishing to donate cash and non-cash items, food or volunteer. Some 400 phone lines have been established to handle calls.

Texas Forest Service's Lone Star State Incident Management Team is responsible for distribution of water, ice and food for hurricane victims still located in Louisiana. Distribution area covers about 8,000 square miles south and east of Baton Rouge. Last weekend, six local distribution centers served 94,912 hurricane victims with water, ice and Meals Ready-to-Eat (MREs).

The Texas Department of Insurance (TDI) has deployed staff to the disaster recovery centers (DRCs) to assist Hurricane Katrina evacuees with their insurance questions and claims, including workers' compensation claims. DRCs are located in Houston, San Antonio and Dallas. For additional resources, a list of insurance carriers that have set up disaster hot lines to help their policyholders, consumers may visit the TDI Hurricane Katrina Assistance webpage.

The Texas Department of Criminal Justice is providing a toll free number for displaced probation or parole offenders to call that will assist in identifying their location as well as securing supervision for these offenders. The number, operated by the Parole Division's Command Center, will be monitored 24 hours per day. The Parole Division is coordinating with the Texas Interstate Compact Office and has agreed to provide emergency reporting instructions and supervision to any Louisiana offenders. Those offenders identified will be supervised until they depart the state.

Hurricane evacuees may dial 2-1-1 for around-the-clock information about evacuations, shelters and other resources. Due to the uncertainty of cell phone access from providers outside of Texas, the 2-1-1 Texas system has implemented a toll-free number, 1-888-312-4567, for disaster information.

More news links and relief effort resources from KERA

More coverage of the health care crisis in Texas on KERA's Life in the Balance page

More news from KERA's NewsRoom