Contingency Funding for Use of Enhanced FMAP (language only)

Item 4-1.08 #1h

Language
Page 388, after line 51, insert:
"§ 4-1.08 GENERAL FUND SUPPLANTS
a. Contingent upon federal action that extends or increases the enhanced Federal Medical Assistance Percentage (FMAP) for the state's Medicaid program, the Department of Medical Assistance Services is authorized to conform any provision authorized in Item 297 of this act to qualify the Commonwealth to receive any additional federal funding from an increase or extension in the enhanced Federal Medical Assistance Percentage (FMAP) rate.  Further, the department is authorized to conform those provisions of Item 297 if federal guidance has been provided that indicates such provision(s) would disqualify the state for the enhanced FMAP.
b. Pursuant to paragraph a., the Director, Department of Planning and Budget, shall transfer general fund appropriation from Item 297 (Medicaid Program Services) of this act to the following items:
1) $100,000,000 to the Tobacco Indemnification and Community Revitalization Fund;
2) $75,000,000 to the educational and general programs of public colleges and universities and their affiliated institutions;
3) $23,000,000 to Direct Aid to Public Education to fully fund the hold harmless provisions related to the Local Composite Index adjustment in fiscal year 2011;
4)  $14,000,000 to Direct Aid to Public Education to pay debt service in fiscal year 2012 for technology grants totaling $58 million in fiscal year 2011;
5) $82,200,000 for a three percent bonus on December 20, 2011 for state employees to include higher education faculty.
c.  Pursuant to the implementation of the provisions of paragraph a. and paragraph b., the Director, Department of Planning and Budget, is authorized to adjust the income eligibility threshold for the Family Access to Medical Insurance Security (FAMIS) Plan to provide coverage for individuals under the age of 19 when such individuals have family incomes up to 200 percent of the federal poverty level at a general fund amount estimated at $16,324,894 the first year and $17,224,239 the second year.    
d. The Director, Department of Planning and Budget, shall report any appropriation restorations or transfers pursuant to this section to the Chairmen of the House Appropriations and Senate Finance Committees within 30 days of such action."

Explanation
(This amendment provides authority for the Department of Medical Assistance Services to make any necessary changes to the Medicaid program to qualify the Commonwealth to receive additional federal Medicaid funding from an increase or extension in the enhanced Federal Medical Assistance Percentage (FMAP) rate. Language also directs the Director of the Department of Planning and Budget to transfer general fund appropriation from the Medicaid program upon the receipt of enhanced FMAP to (i) restore funding to the Tobacco Indemnification and Community Revitalization Fund, (ii) restore funding to higher education, (iii) provide additional amounts to local school divisions whose funding would be reduced from the implementation of the Local Composite Index adjustment in the first year, (iv) provide funding to pay debt service for school technology grants in the second year, and (v) provide a three percent bonus to state employees and higher education faculty in the second year. Language also allows for the restoration of funding to increase eligibility for the children's health insurance program up to 200 percent of the federal poverty level, as funding permits.)