RICHMOND - Virginia may have to find $166 million in additional Medicaid funds to meet new eligibility requirements under the federal health-care reform bill if Congress does not enact new funding for the program, the House Appropriations Committee was told yesterday.
Proposed new funding has stalled in the U.S. Senate over concerns about rising federal debt.
Susan Massart, a fiscal analyst for the budget committee, said the federal legislation required states to maintain Medicaid and State Children's Health Insurance Program eligibility levels in place as of the date of the passage of the reform legislation, March 23, 2010.
The state might have to cut existing Medicaid funds or find new revenues elsewhere in the budget to meet the new eligibility requirements, she said.
Gov. Bob McDonnell has discretion within the state budget to shift funds between fiscal 2012 and fiscal 2011 to make up for the lost funds.
McDonnell came under fire yesterday from two Democratic legislators for not pushing harder for federal money.
The governor signed a letter in February, along with 46 other governors, asking for the money. But McDonnell now says he is concerned about the debt.
"The governor's position remains the same as the letter he signed in February," director of communications Tucker Martin said. "He supports the extension, and he continues to be very concerned with the increasing levels of federal spending."
But Del. Patrick A. Hope, D-Arlington, asked: "When exactly did the federal budget become a revelation to the governor?"
Del. David L. Englin, D-Alexandria, added: "With Virginia preparing to cut services to thousands of our most vulnerable citizens because Congress has yet to approve this money, it's irresponsible for Governor McDonnell to send a message that this money is no longer necessary."
Massart said the latest word from Washington is that if the funding measure is to be passed in Washington, it may be phased in over a six-month period or the Medicaid amount may be reduced.
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