Budget Concerns Remain Center Stage

VHCA (1/15/2010)

On both the state and federal levels, budget concerns and related health care spending are front and center as policy makers struggle with declining government revenues and increased demands for services.

In his farewell budget, Governor Tim Kaine is proposing $2.3 billion in cuts, accompanied by a one percentage-point increase in the income tax to raise $1.9 billion as a strategy to lessen the need for additional cuts.  Incoming governor Bob McDonnell, along with a Republican controlled House of Delegates, oppose new taxes and will likely seek an additional $2 billion in budget cuts.

The national recession continues to take its toll on Virginia where $7 billion in spending reductions have been enacted since April 2007.  While the Commonwealth’s jobless rate is well below the national figure of 10 percent, tax revenues continue to falter, which triggers the need for yet another round of expenditure cuts.

The message from both the outgoing and incoming Administrations and key budget writers in the General Assembly remains consistent.  With education, health and public safety accounting for more than 80 percent of the general fund side of the budget, it is certain that these core services will not escape unscathed.  Estimates are that Medicaid funding for health care could be chopped an additional $419 million.

Earlier this week, VHCA staff met with the legislative analysts that serve the two General Assembly money committees – the House Appropriations Committee and the Senate Finance Committee.  While these staff members are already very familiar with the ongoing struggle to adequately fund Medicaid nursing facility care, we shared information about the added difficulty now experienced by our members as they face reductions in payment for Medicare skilled services.  VHCA will be providing these analysts with Virginia-specific impact estimates of both the Final Rule and anticipated additional cuts to SNF payment included in health care reform proposals now being negotiated.

It is critical that all long term care professionals continue to communicate the hardship that facilities are already facing as they deal with existing cuts to both Medicaid and Medicare payment rates and the devastating impact that additional cuts would create.  To contact your congressional representatives in Washington, click here.  For resources and contact information for communicating with members of the General Assembly, please click here.

Please make plans now to attend the Winter Legislative Conference in Richmond scheduled for February 23-24.  There is no more effective way to communicate the message about the critical need to adequately fund health care services in the Commonwealth than meeting face-to-face with members of the General Assembly.  To register for the conference please go to the VHCA website.