After protracted debate that largely centered on whether the Commonwealth should extend Medicaid coverage to adults aged 19-64 who meet certain income limits under the Affordable Care Act, the General Assembly passed the fiscal year (FY) 2019-2020 budget on Thursday. The budget bill includes full funding of the inflationary adjustments for nursing center and specialized care services for fiscal years 2019 and 2020.

We anticipate that the Department of Medical Assistance (DMAS) will release its rate update memo to providers as soon as the budget is signed by Gov. Ralph Northam, which may be as early as today. This memo will indicate an inflationary update of 3.6% for fiscal year 2019, which begins July 1. DMAS is likely to post the 2019 rates on its website concurrent with release of the memo. The posted rates will reflect inflation applied to the relevant components, as well as an updated FRV (capital) component rate.

The budget also authorizes up to $1 million per year for special projects using the civil monetary penalty (CMP) fund. This total reflects the association’s efforts to advocate for an increase in the authorization of $675,000 per year over the amount proposed in the introduced budget to provide DMAS the flexibility to authorize multiple and/or larger-scale grant projects. This funding will be used to fund grants for special projects to assist in improving the quality of care in nursing centers across the Commonwealth.

In addition, of interest to assisted living facilities with residents on the auxiliary grant, the budget increases the monthly amount to $1,271 beginning 7/1/18 (an increase of $35) and $1,296 beginning July 1, 2019 (an additional $25 increase).

Four Republican Senators broke with their caucus to join the 19 Democrats passing the budget on a 23-17 vote. The four Republicans were led by Sen. Emmett Hanger (R-Augusta County), a staunch supporter of VHCA-VCAL priorities, Sen. Ben Chafin (R-Russell County), Sen. Jill Vogel (R-Fauquier County), and Sen. Frank Wagner (R-Virginia Beach). The House of Delegates met after the Senate vote to approve the budget and forward it to Gov. Ralph Northam for his signature. Gov. Northam’s office issued a statement stating his staff would work quickly to ensure that there are “no technical issues or unintended problems that may warrant an amendment.” He is expected to sign the budget.

Sen. Hanger and Del. Chris Jones (R-Suffolk), chairman of the House Appropriations Committee, brokered a compromise earlier this month which set up yesterday’s votes.  Throughout the budget process, legislators and the governor included funding for nursing center services.  VHCA-VCAL is grateful for their support of this important issue.