News Release

August 5, 2004
For Immediate Release

VIRGINIA RECEIVES GRANT TO FURTHER STATE'S EFFORTS TOWARD
MEDICAID BUY-IN PROGRAM

Richmond, VA - Virginia received another $500,000 from the U.S. Department of Health and Human Services to further enhance employment options for workers with disabilities by targeting improvements in the state's health care system.

"A major disincentive for people with disabilities who are willing and able to work is the fear of losing crucial health care coverage if their earnings reach a certain level," said Governor Warner. "These funds will ultimately help bring changes in our system so that workers with disabilities will no longer have to choose between employment or health care."

This is the third year that Virginia has received a grant award under the Medicaid Infrastructure Grant program. The program was authorized by the Ticket to Work and Work Incentives Improvement Act, a law that was passed in 1999 to encourage people with disabilities to work without fear of losing eligibility for health benefits such as Medicare and Medicaid.

The current focus of Virginia's Medicaid Infrastructure Grant project is to establish a Medicaid Buy-In program for the state. Through this program, workers with disabilities will be allowed to pay a premium to participate in the State's Medicaid program, as though they were purchasing private health care coverage. A Medicaid Buy-In will permit higher income and resource levels for workers with disabilities while ensuring continuation of crucial health care coverage, thus providing an opportunity and incentive to seek gainful employment.

"This initiative is another example of Virginia's commitment to removing barriers that discourage people with disabilities from reaching their fullest employment potential," Governor Warner said.

Funding to implement a Medicaid Buy-In program as a waiver (limited to 200 recipients in the first year) was included in the Governor's budget and presented to the General Assembly in December 2003.