The Texas Health and Human Services Commission (HHSC) announced a pair of leadership changes July 9 that will affect the agency’s legal operations, Medicaid oversight and policy direction ahead of the next legislative session.
The appointments place two experienced agency leaders in roles that touch some of HHSC’s most complex responsibilities, including legal compliance, program administration, Medicaid managed care, children’s health coverage, privacy, civil rights and appeals.
In a July 9 announcement, HHSC unveiled the appointment of Stephanie Stephens to the Chief Medicaid and CHIP Officer, also known as the Texas State Medicaid director, effective Aug. 15. Nycia Deal will also become chief counsel for HHSC on Sept. 1, succeeding Karen Ray, who held the position after three decades of service to the state.
Stephens, a tenured state leader, will assume the position following the departure of Emily Zalkovsky. Stephens will step into one of HHSC’s most visible program leadership roles. As chief Medicaid and CHIP officer, she will oversee Medicaid and Children’s Health Insurance Program services during a period that includes the agency’s Sunset review and the upcoming legislative session.
Stephens previously served as Texas state Medicaid director from 2020 to 2023. She joined HHSC in 2008 as a policy analyst and held several leadership roles, including deputy state Medicaid director, senior policy adviser and policy director in eligibility services. Most recently, she led a consulting practice focused on health and human services strategy and analysis.
As chief counsel, Deal will lead the Chief Counsel Division, which provides legal guidance on issues affecting programs and operations across the state’s health and human services system. The division also oversees HHSC’s appeals, ethics, privacy and civil rights functions.
Since 2022, Deal has served as chief deputy counsel and led HHSC’s Legal Services Division. She previously served as legal services policy director and practiced administrative and health law at the Texas Medical Board and the Texas State Board of Dental Examiners. She also has experience in private practice.
Her appointment gives HHSC continuity in a legal office that helps guide decisions across a large and highly regulated agency. HHSC administers programs that affect health care access, food benefits, long-term care, behavioral health services, regulatory oversight and services for Texans with disabilities.
Rather notably, HHSC is listed by the Texas Sunset Advisory Commission as an agency under review, a process that evaluates whether state agencies should continue operating and recommends statutory, management and policy changes. The review can shape how lawmakers approach agency oversight, program structure, accountability and future operations.
The leadership changes will likely bring institutional knowledge at a time when the agency is navigating legal, fiscal and policy pressures. Deal’s role will focus on the legal foundation that supports agencywide decisions, while Stephens will guide the state’s Medicaid and CHIP programs through a period of review and transition.
Photos from LinkedIn
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