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Submit Your Cost Containment Comments by Nov. 1

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The 87th Legislature included a cost containment rider in the General Appropriations Act for the 2022-2023 fiscal year. It directs HHSC to achieve $350 million in savings by focusing efforts on:

  • Reducing fraud, waste and abuse.
  • Maximizing federal flexibility under the Medicaid program.
  • Making the best use of staffing resources, including converting contractors into state staff.
  • Encouraging the use of telemedicine, telehealth or phone services.
  • Applying for a federal waiver of the institutions of mental disease exclusion, if it would result in a net cost savings.
  • Making programs and administrative supports more efficient.

Additionally, the rider states “that HHSC shall achieve savings without adjusting amount, scope, or duration of services or otherwise negatively impacting access to care.”

Some examples of initiatives being considered include:

  • Making contracts more efficient by bringing services in-house, and redesigning contract deliverables without affecting information quality.
  • Achieving administrative savings by writing more concise materials and reducing printing and mailing costs.
  • Implementing reductions in operations such as regionalizing accounting operations.
  • Generating more revenue.

Stakeholder input is a critical element of this process. Let HHSC know any more cost containment initiatives to consider. Submit your ideas to

Include the following in your email:

  • Your name or the name of your organization, and a contact person.
  • A clear, concise description of the recommendation.
  • An estimate of the amount of savings this would achieve.
  • Any expected impact or benefit to the state or the people we serve.

The deadline for submitting comments is Nov. 1. HHSC will review and consider comments as it develops and moves forward with its cost containment initiatives for the upcoming biennium.