The federal government granted the state of Vermont a new waiver Wednesday to use Medicaid dollars flexibly for another three years.
Mark Larson, commissioner of Vermont Health Access, told legislators Wednesday that the state was given a new federal 1115 waiver, which allows the state to run its Global Commitment program for another three years, or until the end of 2016. That program caps the total amount of Medicaid dollars the state can use, but gives the state leeway in how they can use them.
“The renewal that extends the global commitment waiver beyond 2013 and includes federal participation in the state-based premium assistance program approved by the Legislature was approved today,” Larson said.
The feds match state Medicaid spending at a level of 55 percent. Larson said the state has never hit its Medicaid cap, and the program spends about $1.2 billion a year — of which 55 percent comes from the feds.
Legislators voted last legislative session to spend $2.87 million from the general fund for these premium subsidies, and the state will therefore receive $3.5 million in federal match money because of this new waiver. The program gives the state the ability to pay out a total of $6.4 million for premium assistance. The premium assistance will help reduce the amount that Vermonters earning between 133 and 300 percent of the federal poverty level must pay for premiums.
The state can also use these funds for mental health programs and to help Veterans pay for care at the Vermont Veterans’ Home.
“Rather than just simply reimbursing (the state) for every specific service that Medicaid pays for, we have more of a global understanding of how we manage our Medicaid program to meet the needs of Vermonters,” Larson said.
