1998 Session

Budget Bill - SB29 (Introduced)

Department of Medical Assistance Services

Item 323

Item 323 (Not set out)

First Year - FY1997Second Year - FY1998
Indigent Health Care Trust Fund (45900)$12,000,000$12,000,000
Hospital Payments for Charity Care (45901)FY1997 $12,000,000FY1998 $12,000,000
Fund Sources:  
GeneralFY1997 $6,000,000FY1998 $6,000,000
SpecialFY1997 $6,000,000FY1998 $6,000,000

Authority: Title 32.1, Chapter 11, Code of Virginia.

A. Any funds for the Virginia Indigent Health Care Trust Fund unexpended at the end of the fiscal year shall not revert to the general fund but shall remain in the Trust Fund for use pursuant to Title 32.1, Chapter 11, Code of Virginia.

B. The Department of Medical Assistance Services shall use funds donated to the Indigent Health Care Trust Fund for the purposes of a demonstration project in select sites across the Commonwealth. Through the demonstration project, the donated funds will be used to assist employers and employees in financing health insurance for households that are at or below 200 percent of United States non-farm poverty income guidelines and are employed in firms that, on at least fifty percent of their working days during the preceding year, employed no more than twenty-five eligible employees and not less than two unrelated eligible employees. In the event that a Medicaid Section 1115 waiver application submitted by the Department for the purposes of obtaining federal financial participation in the project is approved by the Health Care Financing Administration, then the donated funds described in this section shall be transferred to Item 322.

C. The Department of Medical Assistance Services shall promulgate regulations, to be effective July 1, 1997, to implement the demonstration project pending the receipt of sufficient donated funds. The state fund will be increased with federal funds if the Health Care Financing Administration approves the Medicaid Section 1115 waiver. The duration of the project will be two years from the implementation date. The Department shall employ sole source contracting with health plans in those select sites across the Commonwealth where the potential contribution of funds may be contingent upon such an arrangement. Furthermore, donations from participating organizations will determine the locations of the project. The project shall be structured so that the health plans accept responsibility for the marketing of the project, the enrolling of employers and employees, and the provision of health care services. The plans will forward applications of those individuals requesting premium subsidies to the Department. The Department will be responsible for determining eligibility and managing clients, as well as sending the premium subsidy payments to the contracted health plans.