Department of Medical Assistance Services [602]
Secretarial Area: Health and Human Resources
Operating Budget Summary
This table shows the Governor's proposed budget for the next two years and the agency's official budget for the previous six years.
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Biennium Fiscal Year Source GF NGF Total
2010-2012 2011 Chapter 2, 2012 Acts of Assembly $2,822,298,324 $4,710,248,288 $7,532,546,612
2010-2012 2012 Chapter 2, 2012 Acts of Assembly $3,367,186,774 $4,045,504,873 $7,412,691,647
2012-2014 2013 Chapter 1, 2014 Acts of Assembly $3,547,761,312 $4,525,123,550 $8,072,884,862
2012-2014 2014 Chapter 1, 2014 Acts of Assembly $3,669,406,166 $4,829,310,906 $8,498,717,072
2014-2016 2015 Chapter 732, 2016 Acts of Assembly $3,846,847,641 $4,786,951,421 $8,633,799,062
2014-2016 2016 Chapter 732, 2016 Acts of Assembly $4,266,731,052 $5,073,691,875 $9,340,422,927
2016-2018 2017 Chapter 1, 2016-2018 $4,450,859,097 $5,472,509,199 $9,923,368,296
2016-2018 2017 Previous Legislative Appropriation $4,450,859,097 $5,472,509,199 $9,923,368,296
2016-2018 2017 Governor's Amendments $0 $0 $0
2016-2018 2017 General Assembly Adjustments $0 $0 $0
2016-2018 2018 Chapter 1, 2016-2018 $4,785,782,724 $5,892,680,250 $10,678,462,974
2016-2018 2018 Previous Legislative Appropriation $4,729,698,510 $5,623,286,311 $10,352,984,821
2016-2018 2018 Governor's Amendments $52,887,014 $265,863,989 $318,751,003
2016-2018 2018 General Assembly Adjustments $3,197,200 $3,529,950 $6,727,150
Positions Budget Summary
Biennium Fiscal Year Source GF NGF Total
2010-2012 2011 Chapter 2, 2012 Acts of Assembly 169.82 194.18 364.00
2010-2012 2012 Chapter 2, 2012 Acts of Assembly 176.32 204.68 381.00
2012-2014 2013 Chapter 1, 2014 Acts of Assembly 183.82 212.18 396.00
2012-2014 2014 Chapter 1, 2014 Acts of Assembly 198.32 226.68 425.00
2014-2016 2015 Chapter 732, 2016 Acts of Assembly 210.37 216.63 427.00
2014-2016 2016 Chapter 732, 2016 Acts of Assembly 225.02 234.98 460.00
2016-2018 2017 Chapter 1, 2016-2018 232.02 241.98 474.00
2016-2018 2017 Previous Legislative Appropriation 232.02 241.98 474.00
2016-2018 2017 Governor's Amendments 0.00 0.00 0.00
2016-2018 2017 General Assembly Adjustments 0.00 0.00 0.00
2016-2018 2018 Chapter 1, 2016-2018 240.02 249.98 490.00
2016-2018 2018 Previous Legislative Appropriation 240.02 249.98 490.00
2016-2018 2018 Governor's Amendments 0.00 0.00 0.00
2016-2018 2018 General Assembly Adjustments 0.00 0.00 0.00
Operating Budget Addenda (in order of greatest impact)
Fund FY 2018 Medicaid utilization and inflation Decision Package
  Provides funding for the FY 2018 cost of Medicaid as estimated in the most recent forecast expenditures.
 
  FY FY
General Fund $0 $86,746,623
Nongeneral Fund $0 $198,323,090
Adjust FY 2018 Health Care Fund appropriation Decision Package
  Modifies the appropriation for the Virginia Health Care Fund to reflect the latest revenue estimates. Tobacco tax revenue is projected to fall below the current budget by $9.2 million in FY 2018 based on the Department of Taxation's revised forecast. Conversely, Medicaid recoveries exceed budgeted projections by $21.6 million in FY 2018. The estimates also account for a $28.1 million prior year cash balance carried over from FY 2017. Since the fund is used as state match for Medicaid, any change in revenue to the fund impacts general fund support for Medicaid.
 
  FY FY
General Fund $0 ($40,503,418)
Nongeneral Fund $0 $40,503,418
Fund FY 2018 Family Access to Medical Insurance Security (FAMIS) utilization and inflation Decision Package
  Adjusts FY 2018 funding for utilization and inflation in the Family Access to Medical Insurance Security (FAMIS) program based on the most recent forecast of expenditures. Funding assumes that current enhanced federal match (88 percent) is maintained for federal fiscal years 2018.CHAR(13) + CHAR(10)
 
  FY FY
General Fund $0 $2,716,734
Nongeneral Fund $0 $19,922,723
Fund FY 2018 medical assistance services for low-income children utilization and inflation Decision Package
  Adjusts FY 2018 funding for the Commonwealth's Medicaid Children's Health Insurance Program to reflect the latest expenditure forecast. Funding assumes that current enhanced federal match (88 percent) is maintained for federal fiscal years 2018.CHAR(13) + CHAR(10)
 
  FY FY
General Fund $0 $654,928
Nongeneral Fund $0 $4,802,805
Fund FY 2018 medical services for involuntary mental commitments Decision Package
  Increases FY 2018 funding for the cost of hospital and physician services for persons subject to an involuntary mental commitment. The most recent forecast of expenditures projects higher costs than previously estimated.
 
  FY FY
General Fund $0 $2,160,194
Provide health care coverage to the uninsured Decision Package
  Provides funding to cover administrative costs for the Department of Medical Assistance Services to begin the work necessary to expand Medicaid by October 1, 2018.
 
  FY FY
General Fund $0 $611,953
Nongeneral Fund $0 $1,111,953
Fund Medallion 4.0 program mailings Decision Package
  Covers the one-time printing and mailing costs associated with informing Medicaid members transitioning into the Medallion 4.0 program, of changes in program requirements, assignment processes, and open enrollment periods.
 
  FY FY
General Fund $0 $500,000
Nongeneral Fund $0 $500,000
Increase use of civil money penalty funds in FY 2018 Decision Package
  Appropriates revenue generated from Civil Money Penalties (CMP) to support additional activities as approved by the Centers for Medicare and Medicaid Services. CMPs are sanctions collected from nursing facilities for being out of compliance with federal long term care requirements. A portion of these penalties are retained by Virginia to address emergency situations and support activities that benefit nursing facility residents.
 
  FY FY
Nongeneral Fund $0 $700,000
Contract for assistance with Medicaid waiver application General Assembly Adjustment
  This amendment provides $3.5 million from the general fund and an equal amount of federal Medicaid matching funds to the Department of Medical Assistance Services to contract for services to assist in the transformation of the Medicaid program for newly eligible individuals pursuant to the Patient Protection and Affordable Care Act (ACA). Services include the development and implementation of the waiver application and other related activities designed to prepare the agency for federal approval to serve newly eligible individuals. Language requires the agency to ensure vendors have prior experience in designing or assisting in the development and implementation of similar activities waiver and allows for the agency to carryover the funds into fiscal year 2019 for such purpose.
 
  FY FY
General Fund $0 $3,500,000
Nongeneral Fund $0 $3,500,000
Account for savings associated with repayment to the Virginia Health Care Fund General Assembly Adjustment
  This amendment reduces the general fund by $166,375 the second year and increases the Virginia Health Care Fund by a like amount from a repayment to the Department of Medical Assistance Services from a provider who received a prior year Disproportionate Share Hospital payment. Funds in the VHCF are used to offset the general fund cost of the Medicaid program.
 
  FY FY
General Fund $0 ($166,375)
Nongeneral Fund $0 $166,375
Reduce Disproportionate Share Hospital (DSH) payments for nonparticipating hospital General Assembly Adjustment
  This amendment captures $136,425 in savings to the general fund and a like amount of matching federal Medicaid funds in fiscal year 2018 in Medicaid Disproportionate Share Hospital (DSH) payments because an out of state hospital has chosen not to participate in the program. Language is added to clarify that these amounts will not be reallocated to other DSH eligible hospitals in fiscal year 2018. Language provides the Department of Medical Assistance Services with the authority to make these changes upon passage of House Bill 5001.
 
  FY FY
General Fund $0 ($136,425)
Nongeneral Fund $0 ($136,425)
Provide for Medicaid expansion and transformation General Assembly Adjustment
  This amendment adds language to provide authority for the Department of Medical Assistance Services to seek approval from the Centers for Medicare and Medicaid (CMS) to enhance Medicaid coverage to certain low income individuals pursuant to the federal Patient Protection and Affordable Care Act (ACA) within 45 days of the effectiveness of this act. Language requires DMAS to seek federal approval for a State Plan amendment, while simultaneously seeking approval for a Medicaid demonstration waiver to promote efficiency, accountability, personal responsibility, and competitive, value-based purchasing of health care to provide a model of health coverage for participants that is fiscally sustainable and cost effective. Language requires the Department of Medical Assistance Services to transform the Medicaid program for newly eligible individuals pursuant to the federal Patient Protection and Affordability Act (ACA) and the existing Medicaid program. Language requires that DMAS submit the § 1115 demonstration application to CMS for approval no later than 150 days from the passage of this act. If the State Plan amendments are affirmatively approved by CMS prior to the submission of the waiver, Medicaid coverage for newly eligible individuals may be implemented; however, if the State Plan amendment becomes effective without affirmative action by CMS, coverage may begin upon submission of the completed § 1115 demonstration application, but no later than January 1, 2019. If the demonstration waiver cannot be completed by 150 days, despite a good faith effort to complete the application, the department may request an extension from the Chairmen of the House Appropriations and Senate Finance Committees. Language requires DMAS to provide updates on the progress of the State Plan amendments and waiver applications to the Chairmen of the House Appropriations and Senate Finance Committees upon request and provide for participation in discussions with CMS staff. The department is required to respond to questions from the federal Centers for Medicare and Medicaid on the proposed state plan amendments and demonstration waiver application in a timely manner. Further, the agency is required to notify and submit a copy of the demonstration waiver application at least 10 days prior to federal submission to the Chairmen of the House Appropriations and Senate Finance Committees. If an objection to the demonstration waiver application is made by either Chairman, the department shall make all reasonable attempts to address the objection(s) and modify the waiver. Language requires DMAS to include several provisions through the State Plan amendments, contracts or policy changes such as, referrals to job training, education and job placement assistance for all unemployed, able-bodied adult enrollees. In addition, DMAS is required to include provisions to foster personal responsibility and prepare enrollees for participation in health insurance plans to include use of Medicaid private managed care health plans, premium support for employer-sponsored insurance, health and wellness accounts, appropriate utilization of hospital emergency room services, healthy behavior incentives, and enhanced fraud prevention efforts. The demonstration waiver requires the development of a premium assistance program for individuals between 100% and 138% of the federal poverty level. It provides for a robust benefit package, which includes mental health services and addiction recovery and treatment services. The premium assistance program would include the development of a health and wellness account for eligible individuals comprised of individual contributions and state funding, monthly individual contributions based on a sliding scale not to exceed two percent of monthly income, provisions for the date coverage begins, provisions for a grace period followed by a waiting period prior to re-enrollment if the premium is not paid, and provisions to recover premium payments owed through debt set-off collections. The waiver also requires cost sharing to encourage personal responsibility for individuals with incomes between 100% and 138% of the federal poverty level. However, individuals meeting one of nine exemptions to the Medicaid Training, Education, Employment, and Opportunity Program (TEEOP) would not be subject to cost sharing requirements more stringent than existing Medicaid law or regulations. Enrollees who comply with provisions of the demonstration program, including engaging in healthy behaviors, may receive a decrease in their monthly premiums and copayments, not to exceed 50 percent. Individuals with incomes between 0 and 100% of the federal poverty level would be enrolled in existing Medicaid private managed care plans with existing Medicaid benefits, subject to existing Medicaid cost sharing requirements. The language includes requirements that the demonstration waiver engage individuals enrolled in Medicaid in the TEEOP to enable them to increase their health and well-being through community engagement leading to self-sufficiency. Individuals meeting certain exemptions would not be subject to the TEEOP requirements, however, individuals who do not meet the TEEOP requirements three months out of a 12-month period beginning with the first day of enrollment would be disenrolled from the program and will not be permitted to re-enroll until the end of such 12-month period, unless the failure to comply or report compliance was the result of a catastrophic event or circumstances beyond the beneficiary's control. However, the individual may re-enroll in the program upon demonstration of compliance with TEEOP requirements. Language also directs the agency to develop a supportive employment and housing benefit for certain high risk Medicaid beneficiaries who need intensive, ongoing support to obtain and maintain employment and stable housing. Language is also added to require both the State Plan amendments and demonstration waiver application to include systems for determining eligibility for participation in the program, provisions for disenrollment if federal funding is reduced or terminated and an evaluation component for the project. Finally, language is added to authorize the agency to implement the provisions of the language prior to the completion of the regulatory process.


p3_bullets - Official Enacted Budget - 07-19-2025 10:16:15