General Assembly Meets for "Veto" Session

VHCA (4/23/2010)

On Wednesday, the 2010 General Assembly reconvened to address Governor McDonnell’s amendments to legislation, including the Budget Bill.  (Governor McDonnell did not veto any legislation.)  Most of the Governor’s amendments to health care related legislation were clarifying amendments and passed with no opposition.  Some of the Governor’s Budget amendments, however, were controversial.

Two of the Governor’s Budget amendments were of particular interest to health care providers including long term care – FMAP dedicated funding and Medicaid managed care.

Governor McDonnell amended the Budget item which dedicated any extension of enhanced federal matching (FMAP) Medicaid funds that Congress may approve to the health and human resource area.  His amendments were designed to give the Administration flexibility in the use of the funding.  The language, however, was so broad that there was great concern that the funds might be used for purposes other than health care as the General Assembly had intended.  Governor McDonnell issued a letter to the General Assembly stating that he would carry out the intent of the General Assembly and use any enhanced federal funding for health care. The Administration believes it needs flexibility because the Budget as passed by the General Assembly overestimated the amount that Virginia might get by $13.8 million.  With the Governor’s assurance that he would follow legislative intent of spending the money on health and human resources, the General Assembly approved this amendment.

Another Budget amendment would have given the Governor the ability to implement capitated Medicaid managed care for all patient groups, including long term care.  Because there had been no discussions about the plan either with legislators or with affected groups, the General Assembly defeated this amendment, believing that such a policy change requires comprehensive study and discussion.