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Arc Action Alert: FMAP extension

August 20th, 2010

Arc of Virginia Action Alert

Enactment of enhanced FMAP extension.

On August 2, 2010, The U.S. Senate passed an extension of enhanced federal Medicaid funding (FMAP).  On August 10, The U.S. House of Representatives also passed this legislation.  President Obama signed the legislation into law on August 10, 2010.

While the passage of the FMAP extension was great news, the funding Virginia will receive is less than originally anticipated.  Virginia’s budget expected $430.8 million in new FMAP funding.  Many services for Virginians with developmental disabilities were to be restored with these FMAP funds, eliminating budget cuts.  The federal legislation, however, only provides $265.6 million, much less than Virginia originally anticipated.

What does this mean for Virginians with developmental disabilities and their families?

Governor McDonnell and Secretary of Finance Rick Brown presented to the General Assembly money committees today about the state of Virginia’s budget.  Among other topics, Secretary Brown discussed how Virginia’s budget (and services for people with developmental disabilities) would be affected by the recent enactment of the enhanced FMAP extension and some of the provisions of health care reform.

1. Virginia is mandated to eliminate the following cuts (and others) due to maintenance of effort requirements.  Therefore Governor McDonnell will do the following:

• Lift the 1 year freeze on HCBS Waiver enrollment (DS, ID, IFDDS, EDCD and Alzheimer’s Waivers)
• Maintain Medicaid Waiver eligibility at 300% SSI
• Maintain Medicaid eligibility (Aged, Blind and Disabled) at 80% of federal poverty level
• Restore optometry services

Funding for the services listed above would be available in BOTH years of Virginia’s budget.

2. Since there is less funding than what was expected, Governor McDonnell has the discretion to decide how the FMAP funds are allocated. Governor McDonnell has decided he will restore the following services from October 1, 2010 through June 30, 2011:

• Add 250 new Intellectual Disability Waivers for families on the waiting list (available October 1, 2010).
• Restore funding for HCBS Waiver reimbursement rates from October 1, 2010 through June 30, 2011. (Note funding lost between July 1, 2010 and September 30, 2010 cannot be recovered).
• Restore funding for environmental modifications and assistive technology, keeping the limit at 5K per person/per year, instead of proposed 3K per person/per year, through June 30, 2011.
• Restore funding for respite services, keeping the limit at 720 hours/year, instead of proposed 240 hour/year, through June 30, 2011.

Virginia has a two year, 2010-2012 budget.  These restorations only address the FIRST year of Virginia’s Biennium Budget, FY11 (July 1, 2010-June 30, 2011). It could be assumed that these cuts will go into effect in the second year in the budget, FY12 (July 1, 2011-June 30, 2012).

MOVING FORWARD

It’s important to remember that these services WOULD have been eliminated THIS year if it were not for the tremendous advocacy efforts of people with developmental disabilities, family members, advocates, providers and concerned citizens across the Commonwealth.  So while we can all breathe a collective (and temporary) sigh of relief knowing our services will be safe for Oct 2010-June 2011, we will need to stay in the fight to ensure they are funded after July 1, 2011.

What about the surplus?

You may have heard in the media that Virginia has reported a $400 million surplus.  It’s important to know that much of this surplus was already appropriated due to budget language and/or legislation.  It appears that the remaining discretionary funds total $71.2 million.  Sec. Brown reported that these funds can either be reappropriated to state agencies or the Governor can instead decide if he would like to use the funds for alternative use.  The Governor will make his decision about how to use these funds by November 1, 2010.    Members of the General Assembly can provide input by sending a letter to Governor McDonnell and Secretary of Finance Rick Brown.

What can you do now?

Call your Delegate, Senator and Governor. Thank them for the restoration of these critical services during the period of October 1, 2010 through June 30, 2011.  Remind them that the need for these services will not go away on July 1, 2011.  Ask them to support restoration of critical services for people with developmental disabilities and their families in the second year of the budget, FY12!

Take action!