2018 Special Session I

Budget Amendments - HB5002 (Committee Approved)

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Reduce Hospital Inflation Adjustment

Item 303 #15h

Item 303 #15h

First Year - FY2019 Second Year - FY2020
Health and Human Resources
Department of Medical Assistance Services FY2019 ($10,948,382) FY2020 $0 GF
FY2019 ($10,948,382) FY2020 $0 NGF

Page 257, line 34, strike "$10,983,034,643" and insert "$10,961,137,879".

Page 278. after line 4, insert:

"PPP. The Department of Medical Assistance Services shall amend the State Plan for Medical Assistance to limit inflation to 50 percent of the inflation factor for fiscal year 2019. This shall apply to inpatient hospital operating rates (including long-stay and freestanding psychiatric hospitals), graduate medical education (GME) payments, disproportionate share hospital (DSH) payments and outpatient hospital rates. Similar reductions shall be made to the general fund share for Type One hospitals as reflected in paragraph B. of this item. Similar reductions shall also be made to the total reimbursement for Virginia freestanding children's hospitals with greater than 50% Medicaid utilization in 2009. The department shall have the authority to implement these reimbursement changes effective July 1, 2018 and prior to the completion of any regulatory process in order to effect such changes."


(This amendment reduces the Medicaid forecast by $10.9 million from the general fund and 10.9 million in federal matching Medicaid funds the first year to reflect a 50% reduction in fiscal year 2019 inflation adjustment for hospital payments. The introduced budget included funding in the Medicaid forecast for a 2.8% inflation adjustment in fiscal year 2019 for hospital payments.)