Texas Governor Backs Away From Plans to Exit Medicaid, Following State Report

Texas Gov. Rick Perry backed away from his earlier call to exit the Medicaid program after a state report said such action would have a devastating effect on healthcare for children and the poor, according to a report by the Houston Chronicle.

But Gov. Perry reiterated that the current Medicaid system is "financially unsustainable." The state says the healthcare reform law will cost it an additional $27 billion from 2014-2024.

The report by the Texas Health and Human Services Commission and the Texas Department of Insurance said most of the methods for fixing Medicaid spending in Texas will require acts of Congress to give the state greater flexibility in how the programs are run and a greater share of the national Medicaid financing.

The report also said the federal government should take over 100 percent financing of health care for non-citizens in Texas, which it said is costing the state program more than $500 million a year.

Read more the Houston Chronicle report on Medicaid.

Read more about states thinking of exiting from Medicaid.

-Texas State Lawmaker, Governor Propose Withdrawing From Medicaid

-Several States Discuss Ending Medicaid

-New GOP Governors Want More Control of Medicaid from Congress

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