In the General Appropriations Act for the 2026-2027 biennium, the Health and Human Services Commission (HHSC) was directed by the 89th Legislature to achieve $550 million in savings. They were directed to focus their cost containment efforts on:
- Reducing fraud, waste and abuse.
- Maximizing federal flexibility under the Medicaid program.
- Making programs and administrative supports more efficient.
- Savings from services that include emergency telemedicine for individuals with intellectual and developmental disabilities.
HHSC is seeking stakeholder input on cost containment. Comments can be submitted to HHS_CostContainment@hhsc.state.tx.us. The deadline for submitting comments is August 31, 2026.
The full communication from HHSC can be found here.
