Kaine proposes subsidized health care for uninsured

WASHINGTON (Map, News) - Virginia Gov. Tim Kaine on Wednesday proposed spending $25.5 million to subsidize health care for the uninsured.

The initiative targets citizens who earn twice the federal poverty level ($41,000 for a family of four), but are not eligible for Medicaid, the federal insurance program for the poor, and cannot afford insurance or do not receive coverage through their employers.

About 1.1 million Virginians are uninsured, according to a September report from the Virginia Health Care Reform Commission, which Kaine created last year.

Specifically, Kaine wants the General Assembly to approve allocating $10 million to clinics that care for the poor and uninsured, plus $7.5 million to expand the state-funded prenatal care program to cover another 400 women and provide free screenings for breast and cervical cancer to another 1,000 women.

The governor also advocates spending $7.7 million to subsidize health insurance for about 5,000 uninsured Virginians who meet the income requirements. The VirginiaShare initiative would subside one-third of a participant's monthly premium, up to $75. The participant and the participant’s employer would split the remaining premium costs.

“One in seven Virginians still lack health insurance because their employers don’t provide it or because they cannot afford it,” Kaine said at a Richmond news conference. “As more citizens rely on our health care safety net for their most basic health needs, we must strengthen that system.”

Kaine said funding for the endeavors will be included in the two-year budget package he is scheduled to present Monday to the legislature's budget and finance committees, but he did not specify where he would find the $25.5 million. Virginia is facing a $600 million revenue shortfall in the current budget and could have similar financial difficulties next year, when Kaine wants to institute his initiatives.

“Clearly expanding access to health care is an issue all Virginians support,” said Del. Phil Hamilton, R-Newport News, vice chairman of the House Appropriations Committee. “We are going to look very closely at how this is being financed. We have made it clear we are not excited about going into the [budget reserve account] to balance the budget to fund new programs. It’s not that we are against the concept but we have to find out how we're going to pay for it.”

jrogalsky@dcexaminer.com