Collegiate Times

Hospitals and health care organizations say the cuts to Virginia's Medicaid funds could result in layoffs and eventually a drop in patient care throughout the state.

Gov. Tim Kaine has cut Medicaid funding to help address a $2.4 billion dollar shortfall in the state's two-year, $77 billion dollar budget. Kaine has asked in return that the Commonwealth's cigarette tax be doubled from $0.30 to $0.60 per pack.

The revenue gained from the tax, which is estimated to be around $154 million, will then be distributed into Virginia's health-care fund, also used to support Medicaid. The tax has not been ratified, and is currently has state legislators embroiled in debate.

The House Finance Committee Panel, a Virginia House of Delegates subcommittee, rejected Kaine's proposal last week in an eight-to-two vote. Delegate James P. Massie III voted against the tax and cited to the Washington Post his desire to protect cigarette-maker Philip Morris. Philip Morris opened a research center in Richmond in recent years, according to the Post.

But the Virginia Hospital and Healthcare Association has now released data suggesting that if the cigarette tax is ultimately rejected in the Senate and additional cuts are taken away from Medicaid, 11,314 total Virginia jobs are at risk. Of these 11,314 jobs, it is projected that 6,321 losses would be directly from health-care related services while the other 4,994 would be from the indirect economic impact on the surrounding communities.

"When reimbursement (from Medicaid) is cut severely, it has to translate in people either having salaries frozen, or reduction of force or both." said Steve Morrisette, president of the Virginia Health Care Association.

The association is a membership organization made up of around 300 licensed nursing homes and assisted living facilities in Virginia. While there is concern for individuals facing layoffs from budget cuts, the fear that the cuts will translate into repercussions for patients is also present and perhaps more alarming.

"If you have cuts, it the affects number of caregivers, so obviously quality of care is impacted at some point because you don't have as many people to get around and help individuals." Morrisette said.

Jill Hanken, staff attorney for the Virginia Poverty Law Center, gave a presentation to the Senate Finance Health and Human Resource Subcommittee on Jan. 26 regarding the cuts.

"It's virtually impossible to (cut Medicaid) without slashing programs and dramatically affecting provider rates, patient services, and possibly eligibility," Hanken said. "Without the tobacco tax, there would need to be additional cuts."

In Virginia, there are currently 17,000 long-term Medicaid recipients, Morrisette said.

Carilion Clinic provides services to the southwestern Virginia region and is headquartered in Roanoke. The clinic serves 85 percent of Medicaid patients in the area. Between the two clinics the company presently operates, 11 percent of patients are Medicaid recipients, said Eric Earnhart, Carilion spokesman.

"We are committed to taking care of patients regardless, and so we will care for our patients no matter what obstacles face us," Earnhart said.

In regard to the current budget cuts, Earnhart said that, "We have to take a careful look at the budget and make good use of our resources now."