Virginia Medicaid Cost Overruns
RICHMOND, Va. (AP) - Virginia is facing a huge bill for unexpected Medicaid costs that hamper proposed new spending on schools or giving tax breaks for the poor.
State officials said Friday that Virginia has about $460 million in unforeseen Medicaid costs.
The news was first reported by the Richmond Times-Dispatch.
Secretary of Finance Aubrey Layne said much of the new costs come from faulty forecasts overestimating the benefits of a using private health insurers to cover a greater number of Medicaid recipients.
The price of covering the new costs could limit lawmakers' ability to put spending in other areas: like improving some of the state's crumbling public schools.
The new unexpected costs are not due to Virginia's recent decision to expand Medicaid eligibility to low-income adults under the Affordable Care Act.