Central Health Considers Budget Options, Mulls Sendero Future

AUSTIN, TEXAS — Central Health officials have asked Travis County Commissioner's Court to postpone voting on the health care district’s fiscal year 2019 budget and tax rate, so it may continue discussing its future investment in Sendero Health Plans, the health care district’s nonprofit Health Maintenance Organization, officials said on Tuesday.

Central Health presented its FY 2019 budget and tax rate during Tuesday’s Travis County Commissioner’s Court meeting, but President and CEO Mike Geeslin asked commissioners to delay any action until the Board of Managers can reconvene to discuss the future of Sendero, according to a press advisory. Sendero Health Plans is a nonprofit organization that currently insures 24,000 individuals in Central Texas, mostly lower- or fixed-income residents.

Travis County Commissioners must approve the health care districts budget and tax rate every year, and they’ve requested additional analysis about the pros and cons of continuing to fund Sendero.

The future of Sendero will be the focus of a special board meeting on Saturday, Sept. 22 at 1 p.m. at Central Health, 1111 East Cesar Chavez St.

Following months of extensive analysis and discussions, the Central Health Board of Managers voted on Sept. 12 to cap funding for Sendero due in part to ongoing financial challenges, officials explained. "Limiting future funding would likely set up Sendero’s exit from the insurance market," officials said in a press advisory. "Central Health’s proposed $24 million investment for FY 2019, which passed by 4-3 board vote, included funding for calendar year 2018, plus funds for calendar year 2019 to enable a responsible 'wind-down' of Sendero."

Regardless of the board’s ultimate decision, Sendero’s 24,000 members who will see no lapse in coverage in 2018, officials stressed.

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