STAR+PLUS vs. Traditional Medicaid for Nursing Homes in Texas | ErikaCrossley.com

STAR+PLUS vs. Medicaid Nursing Home Coverage in Texas: What’s the Difference?

Texas delivers most Medicaid long-term care through STAR+PLUS managed care — not traditional fee-for-service Medicaid. Understanding how STAR+PLUS works changes how families navigate nursing home Medicaid in Texas.

When most people say “Medicaid nursing home coverage,” they picture a straightforward government payment system. In Texas, the reality is more complex: most Medicaid long-term care is delivered through STAR+PLUS, a managed care program operated by private health plans contracted with the state. Understanding how STAR+PLUS works is essential for Texas families navigating long-term nursing home Medicaid.

Factor
STAR+PLUS Managed Care
Traditional Fee-for-Service Medicaid
What It Is
STAR+PLUS Managed Care: Texas Medicaid’s managed care delivery system for long-term care; operated by private MCOs (Molina, Aetna, UnitedHealthcare, etc.) contracted with HHSC
Traditional Fee-for-Service Medicaid: Direct government payment system; HHSC pays providers directly; limited use in Texas for long-term care
Who It Serves
STAR+PLUS Managed Care: Most Texas Medicaid members who are elderly or have disabilities and need long-term services; statewide except some rural areas
Traditional Fee-for-Service Medicaid: Some rural areas and specific situations not covered by STAR+PLUS; primary payment system in states that have not adopted managed care for Medicaid
Nursing Home Coverage
STAR+PLUS Managed Care: STAR+PLUS MCO authorizes and manages nursing home care for enrolled members; pays the nursing facility directly
Traditional Fee-for-Service Medicaid: HHSC pays nursing facilities directly at established rates; less intermediary involvement
Care Coordination
STAR+PLUS Managed Care: STAR+PLUS MCO assigns a service coordinator to help members navigate care options; coordinates medical and LTSS benefits
Traditional Fee-for-Service Medicaid: Less coordinated; HHSC manages eligibility and payment; members navigate services more independently
MCO Choice
STAR+PLUS Managed Care: Members choose from available MCOs in their area; choice can affect which nursing homes are in the network
Traditional Fee-for-Service Medicaid: No MCO involved; any Medicaid-certified nursing home that accepts the state rate is available
Benefits Included
STAR+PLUS Managed Care: Both physical health benefits (medical) and LTSS (personal care, nursing facility, community-based services) through a single MCO
Traditional Fee-for-Service Medicaid: Fee-for-service payment for covered services; may be coordinated across multiple state agencies
Authorization Process
STAR+PLUS Managed Care: STAR+PLUS MCO must authorize nursing home admission and continued stays; periodic reassessments
Traditional Fee-for-Service Medicaid: HHSC determines eligibility and level of care; authorization is less MCO-driven
Applying for Coverage
STAR+PLUS Managed Care: Apply through Texas HHSC; upon approval, HHSC assigns or allows choice of STAR+PLUS MCO
Traditional Fee-for-Service Medicaid: Apply through HHSC for Medicaid eligibility; placement in STAR+PLUS or traditional Medicaid determined by HHSC

The Bottom Line

In Texas, for most families, STAR+PLUS is Texas Medicaid — it is the primary way Medicaid pays for nursing home and community-based long-term care in most parts of the state. When a family says their parent is “on Medicaid” at a nursing home in Texas, they are almost certainly enrolled in STAR+PLUS. The practical implication is that the MCO assigned to the member has authority to authorize, manage, and sometimes limit the specific nursing home where care is provided. Families should communicate directly with the STAR+PLUS MCO’s service coordinator when questions arise about coverage, authorization, or care planning.

Questions Families Ask About This Decision

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