Gov. Perry Announces $167 Million For Medicaid Reimbursements

AUSTIN - Gov. Rick Perry today announced that $167 million in federal funds can now be used to increase the Medicaid reimbursement rate for health care providers and expand community care services for the elderly and poor.

Use of the funds for fiscal year 2004 was cleared based on a letter from the Attorney General's Office affirming the state's authority to spend the dollars. Perry, along with Lt. Governor David Dewhurst and House Speaker Tom Craddick, announced use of the funds during a news conference at the State Capitol.

"Today doctors, hospitals and patients can breathe a sigh of relief because the State of Texas has received this legal approval," Perry said. "This is good news, and it demonstrates that even as Democrat senators abdicate their responsibilities, those of us who remain in Austin are working to achieve the public good."

Last week, Perry asked the Attorney General to examine the issue because of concerns raised during the budget certification process about the validity of two budget riders. Those concerns had been addressed with clarification language in House Bill 5 during the first called special session. However, that bill was killed when 11 Democrat senators walked out on July 28.

With the legal issues now cleared, Perry said Texas doctors, hospitals and other health care providers will receive more than $100 million in health care funds. Texas Health and Human Services Commissioner Albert Hawkins will begin the process of reprogramming computers so that doctors receive a higher reimbursement rate in a timely manner.

In addition, more than $36 million will be available to maintain community care personal attendant hours at current levels.

"I want Texans to know that, despite recent disruptions, their leadership in Austin is busy working to stretch their dollars to fund the most critical services," Perry said. "With or without some of our Democrat colleagues, we will do everything we can to improve funding for health care, education and transportation."

Although use of these federal funds has been cleared, Perry noted up to $100 million for trauma care through the Texas Driver Responsibility Program and spending authority for an additional $231 million to help jumpstart transportation projects across Texas are still jeopardized by the Democrat walkout. Cleanup legislation for those funds also died in the last special session when senators left the state before a final vote.