Dive Brief:
- Virginia governor Terry McAuliffe announced Friday that he will veto an amendment in the state budget that bars Medicaid expansion (or the private option) without approval of both legislature houses.
- McAuliffe said that his staff has enlisted the aid of federal government, insurance plans, hospitals and others to create a plan to expand healthcare coverage to 400,000 low-income residents. He has ordered Secretary of Health and Human Resources Bill Hazel to produce an expansion plan by September 1.
- Nothing is set in stone yet: The House GOP leader called the move a "blatant executive overreach" that the party is prepared to challenge "through all available avenues, including the court system."
Dive Insight:
The expansion of Medicaid can have a dramatic impact on providers' bottom lines: Harborview Medical Center, Seattle's largest safety net hospital, said it expects to boost its revenue by $20 million this year — double its initial projection — due to a drop in uninsured patients from 12% in 2013 to 2% this spring. State wrangling over the expansion of Medicaid under the ACA is going on across the nation, and McAuliffe's executive decision may have implications for hospitals in other states whose legislatures have been reluctant to comply.