Texas has considered and a lot of other states will be considering dropping Medicaid. Texas did a study and found that by dropping the federal funding and requirements, they could possibly come out better by going alone with a strictly controlled state program (no abortions, no illegals, mandatory co-pays, etc.). Hopefully Texas will do it in the future.
I love the idea of dropping it and going private. I worked Medicaid cases for the State several years ago and found the potential for fraud was enormous. Not enough oversight or control....and too many people “working the system”.