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May 21, 2013

Virginia Takes Another Step on the Pathway to Medicaid Expansion

Virginia has taken a significant step toward Medicaid expansion, keeping the state on track to extend health insurance to nearly 400,000 low-income Virginians.

Today, Virginia gained approval for an innovative demonstration project to better coordinate the care for individuals who receive care through both Medicare and Medicaid, according to an announcement from Governor McDonnell. This new program, called Commonwealth Coordinated Care, will launch in early 2014, and will serve more than 78,000 Virginians eligible for both Medicare and Medicaid.

This reform holds the potential to not only help better manage people’s care, but also to save the state money. The state projects this demonstration project will save $11.3 million in fiscal year 2014 and $22.6 million in 2015. These, along with other reforms required for Virginia to expand Medicaid, stand to save the state up to $341 million over the next nine years.

The creation of Commonwealth Coordinated Care is great news for Virginia since moving forward with this project satisfies one of the requirements for Virginia to expand Medicaid as part of health care reform.

–Massey Whorley, Senior Policy Analyst

The Commonwealth Institute

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