The ARC of Virginia keeps the disability community informed of important changes in Medicaid funding for Virginia.
Enactment of enhanced FMAP extension.
On August 2, 2010, The U.S. Senate passed an extension of enhanced federal Medicaid funding (FMAP). On August 10, The U.S. House of Representatives also passed this legislation. President Obama signed the legislation into law on August 10, 2010.
While the passage of the FMAP extension was great news, the funding Virginia will receive is less than originally anticipated. Virginia’s budget expected $430.8 million in new FMAP funding. Many services for Virginians with developmental disabilities were to be restored with these FMAP funds, eliminating budget cuts. The federal legislation, however, only provides $265.6 million, much less than Virginia originally anticipated.
What does this mean for Virginians with developmental disabilities and their families?
Governor McDonnell and Secretary of Finance Rick Brown presented to the General Assembly money committees today about the state of Virginia’s budget. Among other topics, Secretary Brown discussed how Virginia’s budget (and services for people with developmental disabilities) would be affected by the recent enactment of the enhanced FMAP extension and some of the provisions of health care reform.
1. Virginia is mandated to eliminate the following cuts (and others) due to maintenance of effort requirements. Therefore Governor McDonnell will do the following:
• Lift the 1 year freeze on HCBS Waiver enrollment (DS, ID, IFDDS, EDCD and Alzheimer’s Waivers)
• Maintain Medicaid Waiver eligibility at 300% SSI
• Maintain Medicaid eligibility (Aged, Blind and Disabled) at 80% of federal poverty level
• Restore optometry services
Funding for the services listed above would be available in BOTH years of Virginia’s budget
2. Since there is less funding than what was expected, Governor McDonnell has the discretion to decide how the FMAP funds are allocated. Governor McDonnell has decided he will restore the following services from October 1, 2010 through June 30, 2011:
• Add 250 new Intellectual Disability Waivers for families on the waiting list (available October 1, 2010).
• Restore funding for HCBS Waiver reimbursement rates from October 1, 2010 through June 30, 2011. (Note funding lost between July 1, 2010 and September 30, 2010 cannot be recovered).
• Restore funding for environmental modifications and assistive technology, keeping the limit at 5K per person/per year, instead of proposed 3K per person/per year, through June 30, 2011.
• Restore funding for respite services, keeping the limit at 720 hours/year, instead of proposed 240 hour/year, through June 30, 2011.
Virginia has a two year, 2010-2012 budget. These restorations only address the FIRST year of Virginia’s Biennium Budget, FY11 (July 1, 2010-June 30, 2011). It could be assumed that these cuts will go into effect in the SECOND year in the budget, FY12 (July 1, 2011-June 30, 2012).
For more information…
Governor McDonnell’s presentation to the Money Committees (Aug. 19, 2011)
Secretary Brown’s Presentation to the Money Committees (Aug. 19, 2011)
The Arc of Virginia
2025 East Main Street Suite 107
Richmond, VA 23223
Phone: (804) 649-8481
Fax: (804) 649-3585
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