Texas State Supreme Court Further Delays Medicaid Therapy Provider Cuts

On July 8, 2016, the Texas Supreme Court issued a temporary injunction to prevent the Texas Medicaid program from implementing rate cuts for children’s therapy services. During 2015, the Texas legislature approved $350 million in budget cuts to Medicaid physical therapy, speech therapy, and occupational therapy for children with disabilities.

The proposed rates are about 20% to 25% lower. The rate cuts affect therapy services provided by Comprehensive Outpatient Rehabilitation Facilities/Outpatient Rehabilitation Facilities (CORF/ORF); home health provider organizations, and by independent therapists. About  60,000 children with severe disabilities use the services.

Families of the children sued . . .