Texas Officials Reach Settlement In Medicaid Lawsuit; Funding Increase Proposed

Texas state House Speaker Tom Craddick (R) and Lt. Gov. David Dewhurst (R) on Thursday announced a settlement with plaintiff's attorneys in a class-action lawsuit involving Medicaid benefits for children, the Austin American-Statesman reports. The lawsuit was filed in 1993 by Texas mothers who alleged that their children did not receive federally mandated Medicaid benefits (Embry, Austin American-Statesman, 4/6). A source familiar with the agreement, which requires approval from U.S. District Judge William Wayne Justice, said that it would require the state to spend more than $500 million in additional general revenue during the next two-year budget period. Susan Zinn, a plaintiff's attorney, said that Justice -- who has scheduled a hearing on Monday for the case -- will "wait until he's sure the Legislature comes through with the funding before deciding whether to approve the settlement." Zinn declined to confirm the agreement's total cost to the state but said that it would increase the Medicaid reimbursement rate by 25% for physicians who treat children and by 50% for dentists who treat children (Fikac/Robison, Houston Chronicle, 4/5). She said the agreement will call for as much as five years of state action, involving the state's obligation to provide transportation for Medicaid beneficiaries, managed care improvements and outreach. Craddick and Dewhurst in a statement said, "With this agreement, dental and medical access will dramatically improve for our neediest children," adding, "We look forward to working with our colleagues in the House and Senate to identify the sources of these new funds" (Austin American-Statesman, 4/6).

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