Texas Children’s Health Plan To Cut Jobs

Texas Children’s Health Plan | Image by Brett Hondow/Shutterstock
Texas Children’s Health Plan | Image by Brett Hondow/Shutterstock

Texas Children’s Health Plan is reportedly cutting hundreds of positions due to falling membership numbers.

Founded in Houston, Texas Children’s Health Plan was the country’s first child-focused health maintenance organization. After recently witnessing a substantial drop in membership tied to the Medicaid unwinding process, the organization is cutting an estimated “few hundred” workers, according to health plan officials, reported the Houston Chronicle.

Congress bolstered state funding for Medicaid during the COVID-19 lockdowns, driving a surge in enrollment. However, over the past year, more than 2 million people in Texas have lost Medicaid coverage. Roughly 70% saw their coverage drop for procedural reasons, such as failure to submit paperwork, amid eligibility changes made by the Texas Health and Human Services Commission, as previously covered by The Dallas Express.

A significant Medicaid administrator, Texas Children’s Health Plan experienced a roughly 30% reduction in its membership to 450,000 members, down from 630,000, explained Michael Murphy, the organization’s president, per the Houston Chronicle.

Texas Children’s Health Plan offers traditional Medicaid CHIP, STAR, and STAR Kids plans. The organization prides itself on providing its members access to a vast network of over 27,000 providers, ensuring they have a wide choice when selecting a healthcare professional.

Benefits include drug coverage, regular physician visits, immunization, and emergency and urgent care. Membership also includes access to “The Center for Children and Women,” which provides “primary care, dentistry, optometry, women’s services, pharmacy and behavioral health – under one roof.”

“As we’ve assessed the impact to our plan, we’ve come to the decision that a reduction in staffing levels is necessary to assure the future of the plan,” Murphy told the Houston Chronicle.

The Texas Children’s Health Plan will provide “transitional assistance” for the employees being let go, according to Murphy. “We have taken the time to be very thoughtful. It’s very important to us that people are well taken care of,” he said.

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