Gov. Terry McAuliffe
Gov. Terry McAuliffe has proposed a two-year pilot program for Medicaid expansion in Virginia, a move the administration says will bring healthcare coverage to about 400,000 people in the state who are currently uninsured while saving $225 million.
The proposal is part of a two-year budget he proposed Monday, the first day of a special session of the Virginia General Assembly that has been called so Republicans and Democrats can develop a budget for the state.
The largest sticking point in negotiations between the Republican-controlled House of Delegates and the Democrat-controlled Virginia Senate has been the expansion of the Medicaid program as prescribed by the Patient Protection and Affordable Care Act — more commonly known as Obamacare — which provides health insurance to low-income citizens.
“At the urging of Republicans in the House of Delegates, I have agreed to introduce a two-year pilot program to close the health care coverage gap so that we can provide coverage now, and reevaluate at the end of those two years,” McAuliffe said in a news release announcing his budget proposal. “This proposal gives Virginia the flexibility to ensure that the program works for our citizens and our budget before moving forward.”
McAuliffe also said the federal government’s Center for Medicare and Medicaid Services has said Virginia can end the program without penalty if Virginians are not well-served over the two years.
The proposed budget seeks to take $100 million of the projected savings and place that money in the Virginia Health Reform and Innovation Fund to deal with future healthcare costs. Another $76 million of savings would constitute a reserve payment to the Virginia Retirement System, which provides retirement plans for local and state government employees across Virginia.
Upon its Monday introduction, McAuliffe’s budget was referred to the corresponding committees in the House and Senate that deal with budget bills. The House Appropriations Committee voted Monday to leave the bill indefinitely — effectively killing it in the House — while the Senate Finance Committee has yet to consider it.
“I am disappointed that House Republicans voted today to continue Washington-style gridlock instead of accepting a budget that includes a responsible proposal to bring billions of federal dollars back to Virginia to close the health care coverage gap and invest in core priorities like education and mental health,” McAuliffe said in a statement following the House committee’s vote.
The move by the Republican-controlled committee falls in line with repeated efforts in the house to divorce Medicaid expansion from the budget. House Speaker William J. Howell (R-28) wrote an editorial for Fredricksburg’s Free-Lance Star on Saturday urging Democrats to sever the link between the two items.
“Some in Richmond have tried to link the two issues,” Howell wrote. “Gov. Terry McAuliffe and my Democratic colleagues refuse to pass a budget unless we implement Medicaid expansion, or some variation of it, in Virginia. Even though their plan does not call for any spending, produce any savings or affect the budget’s bottom line, they inserted their Medicaid expansion plan into the budget in order to gain leverage, rather than submit a standalone bill.”
Howell and other General Assembly Republicans have proposed a separate special session to consider Medicaid expansion.
“Throughout the last two weeks, we have made it clear that we are willing to have the debate over Obamacare in a separate special session, but not with the threat of a government shutdown being used as a bargaining chip. We recognize that Republicans and Democrats disagree on Obamacare, but we should agree on funding for our schools, teachers, roads, law enforcement and local governments,” according to a statement from Howell, Majority Leader Del. Kirk Rox (R-66), Caucus Chairman Del. Tim Hugo (R-40), Majority Whip Del. Jackson Miller (R-50) and Deputy Majority Leader Del. Todd Gilbert (R-15).
Sen. John Miller (D-1) who represents parts of the Historic Triangle in the Virginia Senate praised McAuliffe’s proposal for the two-year pilot program as a compromise between a full-fledged expansion of Medicaid and its outright rejection.
“At this point, there are no legitimate reasons not to move forward with Medicaid expansion and close that coverage gap,” Miller told WYDaily.
Del. Monty Mason (D-93) said the pilot program would be beneficial for the 22 percent of Virginians who work in seasonal and part-time jobs, which he characterized as the “backbone” of the Historic Triangle’s tourism economy.
“This governor’s budget recognizes that [the Affordable Care Act] is law,” Mason said. He said he is hopeful the proposed budget will be debated on the floor of the House of Delegates.
WYDaily attempted to contact the Historic Triangle’s Del. Brenda Pogge (R-96), however she did not respond to a request for comment. The office of Sen. Tommy Norment (R-3) directed WYDaily to a spokesperson who did not respond to calls.
Along with the proposed expansion of Medicaid, McAuliffe’s budget proposal calls for a 2 percent pay raise for state employees, K-12 teachers and support personnel, college and university faculty, constitutional officers and state-supported local employees.
Mason praised the pay raises in the proposed budget, noting he has received many emails from constituents who want to see teacher salaries remain competitive. He also said he was happy to see $17 million in funding in the proposal designated for the Line of Duty Act, which helps families of Virginia first responders who die in the line of duty.
The General Assembly’s special session became necessary when the legislature failed to pass a budget by the March 8 deadline. The delayed passage of a state budget has caused headaches for local governments around the state, including in York County, where the York County School Board passed a budget for the upcoming fiscal year Monday despite uncertain contributions from the state, which is the largest provider of funding for the division.
Along with the Medicaid expansion and pay raises, the budget includes funding increases for land conservation, pre-K, mental health funding and several other items.
The special session will continue as legislators work to pass a budget in both houses.