Medicaid Costs to Grow by $300 Million, as McAuliffe and Northam Continue Calls for Expansion
News broke Tuesday that Virginia’s Medicaid costs will continue to grow, with a 2017 increase of nearly 7.4%, nearly $300 million. This on the heels of Virginia’s $1.48 BILLION budget shortfall leaves the Governor’s office in a policy wasteland. McAuliffe has committed to his quixotic quest for a legacy, with his fourth attempt to expand Virginia’s Medicaid system in as many years, in the face of overwhelmingly rising costs, facts, and figures.
Recall that Arkansas, Ohio and Kentucky are just a few of the states dealing with the ballooning costs of expanding Medicaid in their respective states. All three have appealed to the federal government to charge a premium to Medicaid expansioners signing up, in order to help recoup costs and damage to their state budgets. Also recall that in Virginia, Medicaid expansion would only provide the Commonwealth with $211 million in 2017, not even enough to cover Virginia’s new burden for existing Medicaid.
In case Governor McAuliffe wasn’t aware that his fourth attempt was already DOA, House Republicans were readily available:
“The official consensus forecast shows the ongoing challenges we face with our Medicaid program,” said House Speaker William J. Howell (R-Stafford). “We continue to see costs on an unsustainable trajectory, even when enrollment levels stay the same. We must look at ways to reform Medicaid in order to protect precious taxpayer’s dollars. This forecast reinforces the wisdom of our decision not to expand Medicaid under the Affordable Care Act.”
Speaking about the report House Majority Leader Kirk Cox (R-Colonial Heights) said, “We cannot ignore the truth on Medicaid. Medicaid remains the largest growth driver in our budget. Medicaid expenditures will consume the largest share of available revenue, limiting our options in K-12 education, higher education and public safety as we try to make up an already large shortfall. This strengthens our position that Virginia must continue to reform its current Medicaid program before we consider expansion.”
“Virginia’s Medicaid program continues to grow at an unsustainable rate consuming more resources, putting more pressure on other areas of the budget “said House Appropriations Committee Chairman S. Chris Jones (R-Suffolk)
“We face significant challenges this coming General Assembly session. Not only do we need to close a significant budget shortfall, but we must now do so with even fewer resources due to significant growth in Medicaid,” said House Appropriations Committee Vice-Chairman R. Steven Landes (R-Augusta). “Every additional dollar we spend on Medicaid takes away from our ability to invest in education. It’s time to look for ways to implement reforms that will achieve savings for the Commonwealth.”
Compounding matters for McAuliffe’s office this week, his administration has also advised both state agencies and all Virginia public colleges to prepare for a 7.5% cut across the board. So we’re now talking about cutting education funding while seeking a program that will only further contribute to Virginia’s deficit, leading to further educational cuts in the near-future.
Well played.
