Just before lawmakers left the capital for the Town Meeting Day recess week, the administration proposed a new approach to finding $2.25 million in the fiscal year 2017 budget.
The new suggestion replaces one originally included in Gov. Peter Shumlin’s budget that would have lowered the eligibility threshold for Medicaid for pregnant women.
Under current state policy, pregnant women with incomes at or below 213 percent of the federal poverty level qualify. The proposal would have lowered the eligibility to 138 percent of the federal poverty level — the same cutoff for nonpregnant adults.
The administration had predicted the state could save about $2.25 million by moving the women in that income class to coverage on Vermont Health Connect, instead of Medicaid.
The idea drew immediate criticism, and just one day after publicizing his budget, the governor shelved that proposal — leaving his budget with a $2.25 million hole.
In late February, Finance and Management Commissioner Andy Pallito proposed a replacement.
According to the Green Mountain Care Board, net patient revenue for hospitals came in $49 million above target in fiscal year 2015. According to calculations by the Department for Vermont Health Access, the excess hospital revenue will garner an extra $2.25 million for the state through the provider tax.
That excess tax revenue ordinarily would go into the state health care resources fund. Pallito proposes to put it toward the $10.3 million tab for the so-called Medicaid 53rd week — an occurrence similar to a leap year when the state reconciles payments for the extra days in each year.
Using the excess provider tax revenue from fiscal 2016 to help pay for the 53rd week would reduce the amount needed out of the fiscal 2017 budget.
