Revenue Secretary Dave Hardy presented highlights of the upcoming fiscal year’s budget, including a brief overview on a proposed Medicaid Families First Fund.
Hardy, along with Deputy Revenue Secretary Mark Muchow, addressed the House Finance Committee Monday morning, going over West Virginia’s revenue figures.
Hardy outlined the surplus in Medicaid, which he said is projected to be $309 million at the end of the 2020 fiscal year. Some of the reasons, he said, for this surplus included a drop in people enrolled in Medicaid, projected savings of $54.5 million from the DHHR’s pharmacy benefits program, and a 1.7% increase in the federal match.
One recommendation, which was mentioned in Gov. Jim Justice’s State of the State address Wednesday night, is the creation of a Medicaid reserve fund, named Medicaid Families First Fund. Establishing this fund would require legislative action. Hardy said the recommendation is for the Legislature to dedicate $150 million to that reserve fund. Hardy said five other states have created similar Medicaid reserve funds.
Other recommendations in the budget is to dedicate about $24 million base-building funds for CPS, about $19 million toward eliminating the wait list for the Intellectual/Developmental Disabilities (IDD) waiver, $2 million toward backpack programs, and $1 million toward food banks.
