The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, February 24, 1996            TAG: 9602240356
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Short :   45 lines

PLAN TO TURN MEDICAID OVER TO STATES DRAWS FIRE

The National Governors Association's proposal to give states more flexibility in managing Medicaid funds jeopardizes the health of thousands of poor and disabled Virginians, critics said Friday.

Representatives of eight Virginia health care, religious, consumer, labor and disability organizations spoke against the plan to send Medicaid money to states in the form of block grants.

``What they're doing here is patently absurd,'' said Dow Chamberlain, executive director of the Virginia Interfaith Center for Public Policy. ``We have to ask how much further we can push our children, our elderly and our unemployable.''

Julie Holt, director of Virginia Citizen Action, said a study by the Children's Defense Fund shows that about 69,500 Virginia teenagers would lose guaranteed Medicaid coverage under the NGA plan. Also, thousands of disabled or elderly Virginians could lose eligibility, she said.

``Now I ask you, if these people are not taken care of through these programs, who will pick up the slack?'' she asked.

Chamberlain said sick people still will have to be treated at hospitals, and the bill ultimately will be paid by other patients.

``It's not cutting costs, it's just shifting costs,'' he said. ``It really amounts to a tax.''

Gov. George F. Allen supports the NGA plan.

``Clearly we believe that we have the ability as a state to run the system better and more efficiently than the federal government,'' said Allen spokesman Ken Stroupe.

Administration officials who manage the Medicaid money in Virginia said in interviews that the critics' complaints are off base.

``In the NGA proposal, the four categories protected are women, children, elderly and the disabled,'' said Joe Teefey, state executive director of Medicaid. ``States have to have coverage for them.''

KEYWORDS: MEDICAID by CNB