2021 Special Session I

Budget Amendments - HB1800 (Conference Report)

View Budget Item
View Budget Item amendments

Capture Savings from Enhanced Federal Match

Item 317 #1c

Item 317 #1c

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Department of Medical Assistance Services FY2021 ($742,622) FY2022 ($427,900) GF
FY2021 $742,622 FY2022 $427,900 NGF


Page 391, after line 24, insert:

"II.  The Department of Planning and Budget shall, if the public health emergency is extended into the third or fourth quarters of the second year extending the enhanced federal match pursuant to the federal Families First Coronavirus Response Act, calculate the general fund savings in the Children's Health Insurance Program administrative appropriation and unallot such amount.  These savings shall revert to the general fund at the end of the fiscal year."


(This amendment captures $742,622 from the general fund the first year and $427,900 from the general fund the second year and a corresponding increase in federal Children's Health Insurance Program (CHIP) matching funds to reflect the savings to the Commonwealth pursuant to enhanced federal matching funds for fiscal year 2021 and the first and second quarters of state fiscal year 2022. The federal Families First Coronavirus and Response Act, passed in March 2020, increased the federal match rate for Medicaid by 6.2 percentage points until the end of the quarter in which the declared public health emergency (PHE) due to COVID-19 expires. The PHE is extended in 90-day increments and was recently extended into the fourth quarter of state fiscal year 2021. In addition, the Acting U.S. Secretary of Health and Human Services has informed all state Governors of their intention to extend the PHE through the end of calendar year 2021 to provide greater budget certainty to states. Therefore, this amendment also captures the savings from the first and second quarters of state fiscal year 2022. The CHIP match rate factors in the Medicaid match rate and therefore results in a higher match. Unlike Medicaid the administrative expenditures of the CHIP program uses the same match rate as used for medical spending. Language is also included directing the Department of Planning and Budget to unallot any additional savings that results from an extension of the PHE.)