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2003 Session

Budget Bill - SB700 (Introduced)

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Department of Medical Assistance Services

Item 326

Item 326

First Year - FY2003Second Year - FY2004
Indigent Health Care Trust Fund (45900)$10,000,000$10,000,000
Hospital Payments for Charity Care (45901)FY2003 $10,000,000FY2004 $10,000,000
Fund Sources:  
GeneralFY2003 $5,000,000FY2004 $5,000,000
SpecialFY2003 $5,000,000FY2004 $5,000,000

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 purpose of a demonstration project in select sites across the Commonwealth to assist low-income employees in purchasing employer-sponsored health insurance. The Department shall employ sole source contracting with health care plans in those selected sites where the potential contribution of funds may be contingent upon such an arrangement.


C. Notwithstanding the provisions of § 32.1-332 et. seq., Code of Virginia, the Department of Medical Assistance Services is authorized to transfer such funds to the Medical Assistance Services Program to optimize federal reimbursement to Type II Medicaid hospitals. The Department shall develop this revised payment methodology in consultation with the hospital industry and report to the Governor and the Chairmen of the Senate Finance and House Appropriations Committees on the implementation of this action no later than October 1, 2003.