Driscoll Health takes legal action against Texas Proposal

EDINBURG, Texas (ValleyCentral) — Texas plans to change insurance providers for Medicaid and Medicare contracts, which could impact thousands of families in the Rio Grande Valley.

Dr. Mary Dale Peterson is the Chief Operating Officer for Driscoll Health Plan, which funds dozens of health-related programs.

Last week she addressed the plan proposed by the state to replace Driscoll with for-profit health provider Aetna. Peterson and CEO Craig Smith explained why they are taking legal action.

“The procurement process conducted by the state was fundamentally flawed, and we believe actually violated state statutes," Craig Smith said. “In that hearing, the agency did not look at the specific networks of health plans.”

Peterson elaborated that their appeal was for the disregard for Driscoll’s infrastructure, which low-income families could lose.

“It’s more than an impact to just people having to change to an unknown entity and an unknown health plan. It’s an investment of infrastructure that would be lost," said Peterson.

Smith agreed, and said, “As a result, 3/4 of the children and pregnant mothers on Medicaid across South Texas will have their health insurance disrupted.”

Several Valley lawmakers have since written to Governor Greg Abbott and the state’s Health and Human Services Commission asking to stop the plan.

The state has rejected the appeal to reconsider.