Legislative Alert: Medicaid ICM Model in Danger
posted 5.16.05
The Integrated Care Management (ICM) model for Medicaid legislation ─ House Bill 1771, and accompanying budget rider, are in peril. To save this important piece of legislation please call Lt. Gov. David Dewhurst immediately and ask him to:
- Advance HB 1771 by Rep. Dianne Delisi (R-Temple) and Sen. Jane Nelson (R- Lewisville) to establish ICM in the state’s urban areas, and
- Support the ICM appropriations rider.
HB 1771 instructs the Health and Human Services Commission (HHSC) to offer the ICM model in the state’s eight largest urban areas as an alternative to the planned expansion of STAR+PLUS Medicaid HMOs. ICM is a health delivery plan for some Medicaid patients that creates a medical home, saves the state money, avoids cost-shifting to local taxpayers, and provides quality medical care.
To successfully implement the ICM model, the legislature must adopt a budget rider and legislation. HB 1771, which unanimously passed the House, is now stuck in the Senate Finance Committee. The Senate is almost out of time to pass this important bill. The deadline is May 25.
Without support from the Lieutenant Governor, ICM will die in the Senate. Please contact Lieutenant Governor Dewhurst today and ask him to support the ICM model. Talking points are below.
If you want to call or fax LT. Governor Dewhurst directly, here the numbers you need:
- Capitol office phone: (512) 463-0001
- Capitol office fax: (512) 463-0677
Please call or fax today. If you don’t, this critical bill will die, and Medicaid HMOs will thrive. The fate of ICM is your hands. The time is now to ensure Texas has the best health care model for Medicaid.
I am a (physician, hospital administrator, home health provider, etc…) who is very concerned about how Texas finances our health care system. Why should Texas support for-profit Medicaid HMOs that divert precious health care dollars out of state and away from patient care?
Texas must get indigent health care costs under control. But for-profit Medicaid HMOs are not the answer. They divert precious health care dollars from direct patient care to burdensome administrative costs. Local taxpayers also are forced to shoulder the additional burden. Local governments must cut health care services or eligibility as they contend with the loss of federal matching funds.
Please support an Integrated Care Management (ICM) model that will put more money into direct patient care, save state dollars, protect local taxpayers, and attract federal Medicaid funds back to Texas.
ICM is an innovative Medicaid managed care model supported by a diverse coalition of business leaders, county judges, physicians, hospitals, long-term care providers, and civic organizations. ICM is the best model for Texas Medicaid.
ICM guarantees state savings . It is the only model of Medicaid managed care acknowledged by the Health and Human Services Commission to fully achieve the state’s $109.5 million budget target for the 2006-2007 biennium.
ICM protects taxpayers . It is the only Medicaid managed care model that will protect public hospitals’ ability to maintain existing and future federal “Upper Payment Limit” dollars – monies now used to support county indigent care programs. If these funds are lost, counties will raise local taxes, reduce services, or both. Over the next two years, counties could lose more than $150 million in federal payments; over five years, some $375 million are at risk.
ICM improves patient care . It will use tested and proven care management features to assure appropriate utilization of acute and long-term care services while reducing Medicaid costs.
ICM continues Texas’ history of tackling complex health care issues with vision and innovation .
ICM, a noncapitated system of care, will save the state dollars by improving patient care and reducing costs using tested and proven physician-driven managed care strategies.
ICM will promote tax equity . Expanding Medicaid HMOs would guarantee a loss of at least $150 million to the state’s safety net hospitals during the next biennium. That will lead to increased local taxes as counties struggle to fund indigent care.
Texas cannot afford to continue sending valuable health care dollars to out-of-state HMOs.
ICM will integrate acute and long-term care to better manage the spectrum of patients’ needs. It will promote the use of community services whenever possible for the elderly and patients with disabilities who require social support services to remain functional.

