RICHMOND — Virginia Gov. Terry McAuliffe signaled Thursday that Virginia’s tough fight over expanding Medicaid is going to recommence when he unveils his two-year budget plan soon.
McAuliffe said a new study by the General Assembly’s audit and review commission, which Republican leaders cite as a reason to keep Medicaid eligibility unchanged, is instead actually a reason to expand the program to cover people who make up to 138 percent of the poverty line.
Republicans cited the report’s findings that overall inflation-adjusted per capita spending from the general fund is down five percent over the last decade, even as the portion of the general fund budget dedicated to Medicaid spending rises.
In the past, Republicans have also expressed concern about what happens if or when federal dollars for the expansion are cut.
But McAuliffe says accepting federal funding available through the Affordable Care Act, also known as Obamacare, is the fiscally rational thing to do.
“I would make just the opposite argument — because of the increased Medicaid costs, if we have an opportunity to save money and bring this money back that will save our budget $300 to $400 million, we’d be foolish not to,” McAuliffe says.
On Tuesday, the House Republican leadership issued a statement warning of the risks of Medicaid expansion based on the new legislative report, calling current growth in Medicaid spending a sign that the existing program is “on an unsustainable path.”
The governor proposes a budget that can be amended by the General Assembly. While all 140 seats are up for grabs in the Nov. 3 election, the House of Delegates is all but certain to remain controlled by a large Republican majority that has opposed the Medicaid expansion. Control of the Senate is seen as up for grabs, based on several key races across the state.
The issue nearly led to a state government shutdown in 2014.
McAuliffe says he is meeting with individual lawmakers to discuss the budget before it is introduced, and that he is open to compromise.
“My door is open 24 hours a day, seven days a week — because you know I don’t believe in sleep,” he jokes.
“You have to negotiate; you have to compromise. Come sit, let’s talk. We can do this so there are no financial obligations to the Commonwealth of Virginia,” he says of Republicans.
McAuliffe says his top priorities in the budget will be K-12 education spending and expanding veterans programs.
