Kaine Proposes Millions For Health

Insurance Plan Limited by Budget

RICHMOND, Dec. 12 -- Gov. Timothy M. Kaine proposed an expansion Wednesday of Virginia's effort to subsidize health care for the uninsured, targeting some women and small-business employees.

But a tight budget forecast kept the governor from expanding the proposal to hundreds of thousands of other residents who lack coverage.

Kaine's $25 million plan, part of the 2008-10 budget he will present Monday, also seeks to boost spending on community-based health clinics that serve the uninsured. It would pump additional money into programs that offer free or low-cost dental care.

About 1 million Virginia residents, one-seventh of the population, have no health insurance. Kaine (D) said this is unacceptable, given the state's relative wealth.

"We have tried to meet that dilemma and chart a path to improvement," the governor said at a news conference Wednesday.

Kaine has hoped to make expanding access to health insurance a cornerstone of his administration. He created a commission last year to study the issue; this fall, the panel recommended more than $130 million in new programs.

But Kaine is hampered by a projected $600 million budget shortfall. Because he has ruled out a tax increase, he said, Virginia will not be able to match other states' efforts on a system of universal health care for the uninsured.

The biggest component of Kaine's program is a proposal to spend an additional $7.7 million over two years to launch the VirginiaShare health insurance program, which would partner with small businesses to offer coverage to employees.

Under the program, the state, employers and employees would divide the costs of acquiring a health insurance policy. To qualify, an employee's income could not be greater than double the federal poverty level.

Kaine said the additional money could allow 5,000 more Virginians to receive health insurance.

A second component of Kaine's plan calls for spending $7.4 million over two years to offer prenatal coverage to an additional 400 women. The plan also would expand the program that offers free breast cancer and cervical cancer tests to some uninsured women.

Kaine also is proposing to spend an additional $5 million each on the Virginia Health Care Association, the Virginia Association of Free Clinics and the Virginia Health Care Foundation, community-based providers of care for the uninsured.