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Court Blocks Controversial Medicaid Contract, Preserving Care for Over a Million Texans

Victory for Driscoll Health Plan

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Craig Smith, CEO of Driscoll Health Plan. Courtesy image
Craig Smith, CEO of Driscoll Health Plan. Courtesy image
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By Roberto Hugo González

In a significant victory for Driscoll Health Plan and its members, a Travis County Court issued a temporary injunction on October 4, 2024, blocking the Texas Health and Human Services Commission (HHSC) from signing a managed care contract that would have disrupted healthcare services for over a million children and families across Texas. The ruling is a significant step in a legal battle that began earlier this year when Driscoll Health Plan was denied the opportunity to continue providing Medicaid STAR and Children’s Health Insurance Program (CHIP) coverage.

The legal conflict dates back to March 2024, when Driscoll Health Plan, a leading provider of Medicaid and CHIP services in South Texas, was excluded from participating in the latest round of managed care contracts issued by the HHSC. The exclusion sparked concerns about the future of care for Driscoll’s 193,000 members and the broader healthcare network for Medicaid recipients in Texas.

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