The "Texas Way" bill aims to reform the Medicaid program in Texas by establishing a block grant funding system and creating an alternative program for low-income individuals to access health benefit plan coverage through the private marketplace. It introduces Chapter 532A to the Government Code, which outlines definitions, federal authorization requirements, and the establishment of a reformed state Medicaid program operating under a risk-based managed care model. The bill mandates that the Texas Health and Human Services Commission administer the Medicaid program according to this new chapter, ensuring eligibility for acute care benefits is based on specific income thresholds and criteria.

Furthermore, the bill introduces Chapter 545A, which focuses on connecting low-income residents with health coverage through private market solutions, clarifying that the program does not create an entitlement to assistance. It requires the commission to negotiate federal waivers for flexibility in using federal matching funds and emphasizes the need for a cost-neutral health benefit program tailored to Texas residents' unique needs. The program will provide premium assistance for private health coverage, encourage personal responsibility through cost-sharing, and utilize technology for efficient management. The bill is set to take effect on September 1, 2025, contingent upon obtaining necessary federal waivers or authorizations.

Statutes affected:
Introduced: Subtitle I, Title , Government Code 1.01, Subtitle I, Title , Government Code 2.01 (Subtitle I, Title , Government Code 2, Subtitle I, Title , Government Code 1)