CHARLESTON, W.Va. — Gov. Jim Justice’s proposal to take $150 million out of current Medicaid funds to create a trust fund will be considered by the full Senate following approval Thursday by the Senate Finance Committee.
File photo
Senator Corey Palumbo
The bill, SB 633, would create the Medicaid Families First Reserve Fund. It was described as being like a Rainy Day Fund for the possibility of Medicaid funds running short in future years.
The Justice administration is expected a $309 million surplus in Medicaid funds.
Senator Corey Palumbo, D-Kanawha, wondered Thursday, given the current situation with hospitals closing, could the money be used to meet current needs.
“Are there not immediate needs for this money now that could be put to use rather than putting into an account for some time later?” Palumbo asked.
Jeremiah SamplesState Department Health and Human Resources Deputy Secretary Jeremiah Samples said saving $150 would help protect the Medicaid fund and its recipients in the years ahead.
“If we do not have this $150 million set aside we will be facing in the Medicaid program of $6 million as soon as we hit 2022,” Samples said.
The Justice administration proposing using another $108 million of the surplus to bridge a revenue gap in the coming fiscal year. A third use includes nearly $50 million on child health and welfare initiatives such as eliminating the waiting list for intellectual and developmental disabilities waivers along with dedicating more money for child protective services.
The bill passed the committee on a voice vote and was sent to the full Senate for consideration.