A revised and re-branded version of the long-resisted "sick tax" has been proposed in Virginia as a way to reap more Medicaid money and expand healthcare coverage for uninsured Virginians.
Virginia Gov. Terry McAuliffe and the VirginiaHospital and Healthcare Association presented the concept of 'provider contributions' Thursday.
Under the program, a hospital would be eligible to collect additional federal Medicaid funding by paying a "contribution" to the state. The federal money would help contribute to uncompensated care and graduate medical education costs at hospitals.
"The association has traditionally opposed provider contributions," said VHCA President Sean T. Connaughton in a letter to the state's general assembly. "However, the mounting financial burden of diminished reimbursements, increased uncompensated care and federal funding cuts necessitate the exploration of even the previously unthinkable."
The McAuliffe administration estimates net savings in state funds of $157 million by supplanting state healthcare spending with federal funds, according to The Daily Progress.
Republican legislative leaders made clear they will actively refute Gov. McAuliffe's attempts to expand the joint federal-state program.
"I fully expect Medicaid to be embedded in the budget," Rep. S. Chris Jones (R-Va.), told The Daily Progress. "We're prepared to deal with it by removing it from the budget."