General Assembly Passes Budget

After a delay of more than a month, the Virginia Senate passed a two-year $85 billion budget on Wednesday.  The Senate’s 21 to 19 decision came after Sen. Chuck Colgan, a Democrat from Prince William, had a change of heart and decided to vote with Republicans for the budget plan that he had voted against on Tuesday.  Senate Democrats had held up the budget for weeks as they fought aggressively for an additional $300 million to pay for key transportation projects in Northern Virginia.

The previously reported Conference Committee recommendations for nursing facility funding are now a part of the budget that is on its way to the Governor for his approval.  These provisions include the inflation adjustments for Medicaid rates and ceilings previously agreed to by both the House and Senate, plus one-half of the funding related to restoring the rental rate floor under Fair Rental Value (FRV).  The FRV restoration represents a "split down the middle" in terms of the full restoration position taken by the House, and no restoration of funding in the Senate's version.  

The budget provides nursing facilities an increase of 2.2% to rates and ceilings and plus an additional 1% ceiling increase in 2013 ($23,058,430 total funds for 2013 and $35,041,246 total funds for 2014).  The budget approved on Wednesday by the Senate also raises the Fair Rental Value (FRV) rental rate floor to 8.5% floor for capital reimbursement (and provides an additional $5,000,000 total funds each year over current funding levels).   The total funding increase for SFY 2013 of $28.1 million translates to an average increase of $4.58 per Medicaid patient day.

For assisted living facilities that participate in the Auxiliary Grant program, the budget amendments include a $774,413 funding increase representing a 1.25% increase in monthly payment in each year of the biennium.  The increase raises the monthly auxiliary grant payment to $1,150 for all areas of Commonwealth excluding Planning District Eight in Northern Virginia where a 15 percent differential may be applied at the discretion of the Department of Social Services.

Please contact VHCA/VCAL at 804.353.9101 with any questions.