2021 Special Session I

Budget Amendments - HB1800 (Conference Report)

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Adjust Health Care Fund and Clarify Repayment Provisions

Item 313 #10c

Item 313 #10c

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Department of Medical Assistance Services FY2021 ($39,410,177) FY2022 $0 GF
FY2021 $39,410,177 FY2022 $0 NGF


Page 346, line 54, strike "$527,992,971" and insert "$567,403,148".

Page 347, after line 7, insert:

"4. Any repayment by managed care organizations resulting from exceeding their profit caps for not meeting the medical loss ratios pursuant to their contracts with the Department of Medical Assistance Services, shall be deposited to the Health Care Fund."


(This amendment reflects the savings to the general fund in the first year from the receipt of $39.4 million in increased revenue in the Virginia Health Care Fund. The increased revenue is due to the receipt of escrow funds from a cigarette manufacturer that did not participate in the 1998 Tobacco Mater Settlement Agreement with state Attorney Generals and instead made payments into an escrow fund as required by the Code of Virginia. This nonparticipating manufacturer is closing and has chosen to assign rights to its escrow funds as permitted by statute in return for the right to retain a portion of those funds. For Virginia, this represents a one-time unanticipated payment of $39,410,177, which is required to be deposited into the Virginia Health Care Fund pursuant to § 3.2-4203 of the Code of Virginia. In addition, language also clarifies that repayments from managed care organizations are to be deposited to the Health Care Fund.)