Workers with disabilities; earned income disregard, cost-of-living adjustment.

Plain English Breakdown

The official source does not provide specific details on the timing of adjustments or potential delays due to federal approval processes.

Earned Income Disregard for Disabled Workers

This bill directs the Department of Medical Assistance Services to seek federal approval to adjust the earned income disregard for disabled workers based on Social Security Administration cost-of-living adjustments.

What This Bill Does

• Requires the Department of Medical Assistance Services to apply for federal permission to adjust the earned income disregard for disabled workers.
• Adjustments will be made according to changes in the Social Security Administration's cost-of-living adjustment.
• The department can submit state plan amendments, apply for waivers, and change regulations as needed to implement this bill.
• Initial adoption or amendment of regulations to follow this act is exempt from certain administrative process rules.

Who It Names or Affects

• Disabled workers who receive Medicaid benefits
• Department of Medical Assistance Services

Terms To Know

Earned Income Disregard

An amount of income that disabled workers can earn without losing their Medicaid eligibility.

Cost-of-Living Adjustment (COLA)

An increase in Social Security benefits to keep up with the rising cost of living.

Limits and Unknowns

• The bill does not specify when the adjustments will take effect.
• It is unclear how much federal approval might delay implementation.

Official Summary Text

Department of Medical Assistance Services; earned income disregard; cost-of-living adjustment.
Directs the Department of Medical Assistance Services to seek the necessary federal approvals to increase, as necessary based upon Social Security Administration cost-of-living adjustments, the earned income disregard for workers with disabilities.

Current Bill Text

HOUSE BILL NO. 267

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Health and Human Services

on February 5, 2026)

(Patron Prior to Substitute--Delegate Tata)

A BILL to direct the Department of Medical Assistance Services to seek the necessary federal approvals to adjust the Medicaid Works earned income disregard based upon the Social Security Administration's cost-of-living adjustment.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
The Department of Medical Assistance Services (the Department) shall seek
the necessary federal approvals to adjust the Medicaid Works earned income disregard
based upon the Social Security Administration
's

c
ost-of-
l
iving
a
djustment. The Department may submit state plan amendments, apply for waivers, and adopt or amend regulations as m
ay be necessary to implement the provisions of this act and secure
the necessary
approval
s
from the Centers for Medicare and Medicaid Services.
The adjustment to the Medicaid Works earned income disregard
shall be effective upon federal approval or consistent with the effective date of an approved state plan
amendment or waiver application, whichever comes later. The initial adoption
and amendment
of
regulations, if necessary,
to implement the provisions of this act shall be exempt from the provisions of the Administrative Process Act (§
2.2-4000
et seq. of the C
ode of Virginia).