Virginia Legislative Committee Still Undecided on Medicaid Expansion

The Virginia Medicaid Innovation and Reform Commission held its last meeting yesterday and seems to be far from making a decision about expanding the program, according to a report from The Washington Post.

State lawmakers created the legislative commission as the result of a conflict between Democrats who support Medicaid expansion under the Patient Protection and Affordable Care Act and Republicans who oppose it, according to the report. The panel's objective is to identify cost-saving reform measures that must be completed before the program is potentially expanded.

State Sen. Emmett Hanger, the commission's chairman, said he's pleased with the group's progress, according to the report. However, Republican Delegate Steve Landes said the state House won't act on the issue during the 2014 session.

Under the healthcare reform law, states have the option of expanding their Medicaid programs to cover people earning up to 138 percent of the federal poverty level ($15,856 for an individual and $32,499 for a family of four). The federal government will cover most of the cost of the expansion, paying 100 percent of the costs for new Medicaid enrollees through 2016. The amount of support will gradually decrease, but the federal government will still cover 90 percent of the costs in 2020.

According to a study from The Commonwealth Fund, Virginia will miss out on $2.83 billion in new federal funds in 2022 as a result of opting out of expansion, assuming all other states participate and factoring in federal taxes paid by state residents.

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