Women's Health saves Texas millions

AUSTIN (KXAN) - Texas' fight with the federal government over funding for the Women's Health Program is raising questions about its future and the 130,000 enrolled.

At the same time, both sides were throwing punches during this week's public hearing, the state's Health and Human Services Commission quietly published a report, saying the program actually saved around $54 million by helping to reduce more than 8,200 unwanted pregnancies through prevention.

"After paying all costs associated with WHP, the services provided in 2010 saved about $54.2 million all funds," the Rider 48 Report said. "The state share of the reduction in Medicaid costs totaled approximately $27.2 million general revenue, and the net state share of savings after paying WHP expenditures totaled approximately $23.6 million general revenue.”

Rep. Donna Howard, D-Austin, testified during Tuesday's State Health Services public hearing and said keeping the program alive will mean less spending in the long run.

"Allowing a woman to have access to family planning so she can prevent a pregnancy that she is not ready to have at that time, the state saves dollars by not having to pay for that unintended pregnancy,” Howard said. "Not only would that result in healthier mothers and babies, but it would also result in huge savings in terms of our Medicaid costs, because it costs significantly more to pay for a Medicaid birth than it does to pay for preventative health services."

The abortion fight

Texas has said it will follow a new state law and not give money to any group with ties to abortion providers. Planned Parenthood - which serves nearly half of the program’s recipients - has become the focus of that controversy because of its affiliation with such clinics.

However, the Women's Health Program does not fund abortions, but instead services like health screenings and birth control for low-income women.

Still, as a result of the move, the federal government is refusing to give Texas any money at all. Now the state plans to create and pay for a new program on its own. Last year, it cost around $40 million. The federal government covered 90 percent of that amount.

"(Continuing the program) just makes good financial sense," said Stephanie Goodman, Health and Human Services Commission spokeswoman. "Medicaid in Texas pays for more than half of all births. It takes up a quarter of the state budget."

Gov. Rick Perry - who has been the face of this funding fight - is "pledged to continue a state-run and state-funded Women's Health Program that abides by our state laws," according to his spokeswoman, Lucy Nashed.

"Tthe bottom line is that the governor has been fighting to keep this program around for Texas women from the very beginning," Nashed added. "The Obama administration pulled the rug out from under the women in this program, because Texas refuses to break our own state law and allow tax dollars to flow to organizations that promote abortions under the the Women's Health Program."

Saving money for the state

Other lawmakers have weighed in on what they see as a program without problems, urging Texas leaders to keep the existing system in place.

“The current program is clearly working," said Rep. Mike Villarreal, D-Austin. "It saves the state money, keeps women healthy, reduces abortions and prevents unplanned pregnancies."

Adding to this health care concern, lawmakers cut two-thirds of the state's family planning dollars last year. With less funding, HHSC has to find a way to pay for the challenge of a state-controlled program.

The commission said that funding could come by reducing overtime, implementing an administrative hiring freeze, and recovering money from Medicaid fraud.

But Howard said there are no promises those options will work, causing Texas to further suffer financially during what could likely be another tough budget period.

"There are still a lot of questions about how we could implement this at the state level,” she said.

Critics worry that - without Planned Parenthood in the program - there will not be enough providers to take on so many low-income women in the program. But Goodman said the state has added about 500 providers over the last couple of months to ensure a strong base exists.

Governor: Federal funds still in play

As it stands now, the commission is set to make the change in November, but Perry's office indicated Thursday that federal funding might somehow still be in play.

"We're going to continue fighting to get our fair share of the federal tax dollars for this important program," said Nashed. "This is still before the courts, and we continue working with Attorney General Abbott as he defends our state laws."

Nashed referenced a recent decision by the Fifth Circuit Court of Appeals vacating a lower court's ruling and affirming that Texas has no obligation to fund organizations that affiliate with abortion providers.

On Tuesday, Planned Parenthood filed for an appeal to remain in the program and to have the three-judge panel re-hear the case.

“We are fighting for the tens of thousands of Texas women who turn to Planned Parenthood health centers for preventive health care they can’t get anywhere else," the group's Texas affiliates said in a joint statement. "Planned Parenthood will do whatever we can to ensure that women will get the health care they need and deserve from their trusted health care provider.