Senate panel carries Medicaid IT modernization study, asks ITAC to review costs

A Senate health subcommittee carried over House Bill 66 and asked that the study be reviewed by the Information Technology Advisory Council (ITAC), after lawmakers described Virginia’s Medicaid and benefits systems as antiquated and potentially costly to replace.

Delegate Kiggans, the sponsor, told the committee the measure would allow the Commonwealth to finish a procurement-ready plan using a third-party vendor and could produce a report by Dec. 1. He said a prior administration’s plan was roughly 75% complete and the study would help finalize requirements and cost estimates.

Committee discussion included a range of cost estimates. One presenter summarized his notes: "This cost about $1 million. And you've got a little more than $300,000 in your budget for it. But ultimately it could lead to cost between 100 and $200 million," reflecting what members said could be the full system replacement expense if modernization proceeds beyond a study. Committee members characterized those larger numbers as contingent on future decisions and the scope of procurement; the committee did not adopt any appropriation.

Members discussed whether ITAC could absorb the study or whether an independent third-party procurement specialist would be necessary; several senators urged sending the matter to ITAC for additional review. The committee voted to carry the bill over and directed staff to write a letter to ITAC asking for its analysis.

The committee did not adopt the underlying policy changes in this meeting. Lawmakers said the study is necessary to avoid later surprise costs and to produce a defensible procurement plan; any substantive modernization would require future budget approvals and procurement steps.

Action: The committee carried HB 66 and will send a letter to the Information Technology Advisory Council to request review and assistance. The committee recorded the carryover by voice; no roll-call tally is recorded in the transcript.