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Senate Health Plan Could Cost $1.4 Billion for Virginia's Medicaid Program

A vote on the Senate healthcare bill has been delayed, and part of the opposition to the measure is how it affects Medicaid spending.

In Virginia, more than a million people are enrolled in Medicaid --- about half are children. If the Senate healthcare bill were to become law, Medicaid would take a serious hit: a billion and a half dollars over the next seven years.  That’s according to a recent analysis by the state agency that runs the program.

 

For every dollar Virginia spends on health insurance for the poor, the federal government throws in another. Currently Virginia spends just over 4 billion a year on Medicaid, meaning the federal government spends the same.

But the new Senate proposal would place a cap on that amount, so even if more people enroll the federal government wouldn’t give more money. And that’s concerning to the state’s healthcare industry.

“All of us at some point are going to need to access the healthcare system. It may not be today, it may not be tomorrow,” says Julian Walker, head of communications for Virginia’s Hospital and Healthcare Association.

Walker points out that even if fewer people have Medicaid, hospitals will still have to provide care.

“Whether or not those patients are insured or are able to pay for the treatment that they receive,” he says.

Fewer federal dollars towards Medicaid could affect more than just hospitals.

In a statement, Virginia’s Governor said state lawmakers may have to make up the difference in other parts of the budget -- like education or transportation. Another option is to raise taxes.

Even state Republican lawmakers expressed their concern in a letter to the Senate earlier this week.

 

This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association

 

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