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Judge: State can't cut Medicaid rates for disabled kids

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AUSTIN — The Texas Legislature got more than it bargained for when it approved $350 million in Medicaid rate cuts for pediatric therapy for children with special needs.

This became apparent late Friday afternoon when state District Judge Tim Sulak ordered the Texas Health and Human Services Commission not to implement the cuts, which were initially scheduled to begin Sept. 1 but had been delayed until Oct. 1.

Under orders from the Legislature, the HHSC planned to slash by as much as 26 percent the Medicaid rate it pays to therapists who treat disabled youngsters.

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