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Medical Billing Services in Texas

Texas splits Medicaid across STAR, STAR+PLUS and STAR Kids programs with different plan lineups by service area, and has not expanded eligibility — producing both program complexity and high self-pay volume.

Billing here means working Texas Medicaid and STAR through its contracted managed care plans alongside Novitas Solutions for Medicare Part B, plus a commercial mix led by Blue Cross and Blue Shield of Texas. Because Texas has not expanded Medicaid, practices here carry a higher share of uninsured and self-pay patients than neighbouring expansion states, which makes point-of-service collection and financial counselling a larger part of the revenue cycle.

Texas payer landscape

Medicaid program
Texas Medicaid and STAR
Medicare contractor
Novitas Solutions — Jurisdiction JH
Primary metros
Houston, Dallas, San Antonio, Austin, Fort Worth

Commercial payers

Who pays claims in Texas

Regional payers frequently carry the largest share of a local practice's volume while being the least standardized. Payer-specific edits matter more here than generic claim scrubbing.

Payer typeIn Texas
Medicaid programTexas Medicaid and STAR
Medicaid delivery modelComprehensive managed care
Medicaid expansionNot expanded
Medicare Part BNovitas Solutions (Jurisdiction JH)
Dominant commercialBlue Cross and Blue Shield of Texas, Superior HealthPlan, Community Health Choice, Baylor Scott & White Health Plan
Primary metros servedHouston, Dallas, San Antonio, Austin, Fort Worth

Why jurisdiction matters

The same claim can pay in one state and deny in another

Medicare Part B claims in Texas are processed by Novitas Solutions under Jurisdiction JH. Each contractor publishes its own Local Coverage Determinations, which means medical necessity criteria for the same procedure genuinely differ across jurisdiction lines.

Practices that expand across state lines, or that hire billing help unfamiliar with their jurisdiction, tend to discover this through denials rather than in advance. It is entirely avoidable, but only if someone is tracking the right contractor’s policies.

How Texas Medicaid and STAR actually pays

Texas Medicaid and STAR claims are adjudicated by contracted health plans, each maintaining its own payer ID, authorization criteria and fee schedule. Submitting to the state instead of the member's assigned plan is one of the most common Medicaid denials in Texas.

What non-expansion means for your AR

Because Texas has not expanded Medicaid, practices here carry a higher share of uninsured and self-pay patients than neighbouring expansion states, which makes point-of-service collection and financial counselling a larger part of the revenue cycle.

24.3%

of denials are registration and eligibility errors

Source: Optum Revenue Cycle Denials Index, 2023 (opens in a new tab)124 million hospital claim remits across 1,400+ US hospitals

~70%

of denied claims are overturned and paid on appeal

Source: Premier Inc., 2023 (opens in a new tab)280 hospitals across 23 states

Questions

Billing in Texas

Last updated August 20, 2026

Texas splits Medicaid across STAR, STAR+PLUS and STAR Kids programs with different plan lineups by service area, and has not expanded eligibility — producing both program complexity and high self-pay volume. That is the fact worth building a workflow around here — more than any general best practice, because it changes who adjudicates the claim and under which rules.

Yes. Texas Medicaid and STAR is Texas's Medicaid program. Texas Medicaid and STAR claims are adjudicated by contracted health plans, each maintaining its own payer ID, authorization criteria and fee schedule. Submitting to the state instead of the member's assigned plan is one of the most common Medicaid denials in Texas. We maintain requirements at that level rather than treating Medicaid as a single generic payer, which is where most Medicaid denials originate.

Texas Part B claims are adjudicated by Novitas Solutions under Jurisdiction JH. Jurisdiction JH also covers Arkansas, Colorado, Louisiana, Mississippi, New Mexico and Oklahoma, so determinations issued there apply to Texas practices too. This matters more than most practices realize: each MAC issues its own Local Coverage Determinations, so a service payable in one jurisdiction can be denied for medical necessity in another with identical documentation. Alongside Medicare, Blue Cross and Blue Shield of Texas is the commercial payer whose policy changes move the most volume for a typical Texas practice.

The dominant commercial payers in Texas include Blue Cross and Blue Shield of Texas, Superior HealthPlan, Community Health Choice and Baylor Scott & White Health Plan. Regional payers often carry the largest share of a local practice's volume while being the least standardized, which makes payer-specific claim edits more valuable here than generic scrubbing.

Texas has not expanded Medicaid. Because Texas has not expanded Medicaid, practices here carry a higher share of uninsured and self-pay patients than neighbouring expansion states, which makes point-of-service collection and financial counselling a larger part of the revenue cycle. It also changes which denials dominate: expansion states see more Medicaid plan authorization denials, while non-expansion states carry more uncompensated care and patient-responsibility balances that never reach a payer at all.

Yes. We work with practices across Texas — Houston, Dallas, San Antonio, Austin and Fort Worth, and rural and independent practices outside them. Billing is performed remotely, so location within the state does not affect service. Payer mix does: outside the Houston area, Texas Medicaid and STAR and Baylor Scott & White Health Plan typically carry a larger share of volume than they do in the metro.

Billing Texas Medicaid and STAR Texas runs Medicaid as managed care, so an MCO adjudicates the claim while the state sets policy. That decides the payer ID, the appeal route and the filing deadline — how Medicaid billing differs state by state covers what changes and why.

Billing Medicare in Texas Novitas Solutions adjudicates Part B claims for JH, and publishes its own local coverage determinations for that jurisdiction. That is why an identical claim can pay in one state and deny in another. See what your MAC decides and how LCDs and NCDs work.

Nearby markets

Medical billing in other South states

Unsure what any of this means? Credentialing, timely filing and medical necessity are the three terms that decide most Texas denials — each is defined in the glossary.

Get a free billing audit for your Texas practice

We'll review your denial rate, AR aging and clean claim rate — including how Texas Medicaid and STAR and Novitas Solutions claims are performing specifically.

No setup fees · You pay when we collect · Pricing from 3% of net collections