2013 Session

Budget Amendments - HB1500 (Conference Report)

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Adjust Revenues to Virginia Health Care Fund

Item 307 #9c

Item 307 #9c

First Year - FY2013 Second Year - FY2014
Health And Human Resources
Medical Assistance Services, Department of FY2013 ($1,588,468) FY2014 ($14,296,899) GF
FY2013 $1,588,468 FY2014 $14,296,899 NGF

Page 264, line 16, strike "$423,940,204" and insert "$425,528,672".Page 264, line 17, strike "$356,468,218" and insert "$370,765,117".

(This amendment reduces the general fund appropriation for Medicaid by $1.6 million the first year and $14.3 million the second year and increases a like amount of nongeneral funds each year, reflecting increased revenues to the Virginia Health Care Fund (VHCF). Because revenues to the fund have historically been used as the state share of Medicaid, additional revenue results in an equal amount of general fund savings. Last year's budget assumed Medicaid recoveries would increase by $20.0 million in fiscal year 2014, as a result of adding 49 staff for enforcement activities in the Medicaid Fraud Control Unit (MFCU). The introduced budget includes an additional 14 FTEs in the MFCU. In spite of the additional staffing, the introduced budget assumed Medicaid recoveries would decline by $8.1 million. This amendment recognizes the additional 63 FTEs added to the MFCU will be able to achieve the previous Medicaid recovery target of $20.0 million, resulting in $8.1 million in general fund savings in fiscal year 2014. Finally, based on current trends in cigarette tax collections, it is assumed that revenues that are deposited into the Virginia Health Care Fund will increase by $1.6 million the first year and $6.2 million the second year, allowing for a reduction in general fund appropriations.)