A BILL to direct the Department of Medical Assistance Services to increase the earned income disregard for workers with disabilities.
HB267 directs the Virginia Department of Medical Assistance Services (DMAS) to seek federal approval to adjust the Medicaid Works earned income disregard in line with the Social Security Administration’s annual cost-of-living adjustment. In practical terms, the bill would allow the income amount that certain Medicaid Works participants can disregard when determining eligibility or benefits to rise over time with inflation, rather than remaining fixed.
The bill authorizes DMAS to pursue the federal actions needed to implement the change, including submitting state plan amendments, waiver requests, and related regulations. The adjustment would not take effect until federal approval is obtained, and any necessary initial regulatory changes would be exempt from the Administrative Process Act. The measure is aimed at workers with disabilities who participate in Medicaid Works and whose earnings can affect their Medicaid eligibility.
If enacted and approved by the federal government, HB267 would amend how Virginia administers the Medicaid Works program by tying the earned income disregard to the Social Security cost-of-living adjustment. This would likely make the program more responsive to inflation and could help preserve coverage for workers with disabilities as wages and living costs rise. The bill would affect DMAS administration, Medicaid eligibility rules, and participants in the Medicaid Works program, while leaving implementation contingent on CMS approval and any required state plan or waiver changes.
The available record suggests the bill was generally supportive in concept, as it was introduced to help workers with disabilities and align Medicaid policy with inflation. However, there is no committee transcript or recorded vote history in the provided materials, and the bill ultimately was left in the House Appropriations Committee. That procedural outcome indicates the measure did not advance, but the record provided does not show explicit opposition or debate.
The main policy issue is whether Virginia should expand or automatically adjust the Medicaid Works earned income disregard, which could increase program costs or affect eligibility administration. Potential points of contention likely include fiscal impact, the need for federal approval, and whether the change should be implemented through statute versus administrative action. Because no transcripts or votes are provided, no specific member or stakeholder objections are documented in the record supplied.