The state's new $116 billion Medicaid contract proposal was scheduled to remove three hospital plans.
A Texas judge has blocked the state from dropping 1.5 million residents from their health insurance plans.District Judge Laurie Eiserloh blocked Texas Health and Human Services from approving contracts that would drop millions from the Cook Children's Health Plan, Driscoll Health Plan and Texas Children Health plans.These plans were available from south Texas to the Houston area and offered Medicaid STAR and CHIP coverage to predominantly children.
'Cook Children's also accused the state agency of giving Aetna an 'unfair advantage' by disclosing copies of competitors' proposals prematurely.The trial to decide the overall fate of Medicaid contracts in Texas is scheduled for Nov. 3, 2025, but the state could appeal the ruling or change their proposal before then.Texas contracts with various managed care organizations, from health insurers to hospital system health plans, to administer its Medicaid and CHIP coverage.
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