NMI prospects bright for increased Medicaid funding

The U.S. House of Representatives has approved a measure that increases Medicaid funding for the CNMI and the other territories this fiscal year, and by up to 70 percent for fiscal 2007.

The provision is part of the Deficit Reduction Act of 2005, which was passed by the Senate last year and is expected to be signed into law by President Bush shortly.

The bill was passed by a vote of 216-214.

Additional federal Medicaid funding authorized by the provision in this law includes:
• CNMI—$1M more for fiscal year 2006 and $2M more for fiscal year 2007
• American Samoa—$2M more for fiscal year 2006 and $4M more for fiscal year 2007
• Guam—$2.5M more for fiscal year 2006 and $5M more for fiscal year 2007
• Puerto Rico—$12M more for fiscal year 2006 and $12M more for fiscal year 2007
• Virgin Islands—$2.5M more for fiscal year 2006 and $5M more for fiscal year 2007

“This is an historic event for the territories, since the last time base amounts for Medicaid payments to the territories were adjusted was in 1997 under the Balanced Budget Act,” said CNMI Washington Rep. Pete A. Tenorio.

In 2004, a hearing was held to address the substandard health care conditions of the CNMI and other territories shortly after Rep. Dan Burton, who is chair of the Committee on Health and Wellness and Human Rights, visited Saipan and toured the hospital facilities and dialysis unit.

Burton later proposed an amendment to the Department of Health and Human Services 2005 Appropriations bill to raise the ceiling on Medicaid funding for the territories. However, the appropriations bill amendment was withdrawn at the request of Rep. Joe Barton, chairman of the Committee on Energy and Commerce, which oversees Medicaid, who vowed to later revisit the issue in his committee.

The CNMI’s federal Medicaid funding is currently capped at $2.38 million, with the local government contributing more than $11 million to meet the island’s actual Medicaid needs. Once Bush signs this bill into law, the CNMI will receive an additional $1 million for FY 2006 and will increase to $2 million in FY 2007. Future years will take into account this adjustment, and will be further adjusted to account for inflation.

“This is a major step forward in remedying healthcare disparities in the CNMI and the territories. Although this amount does not come close to the level of federal Medicaid assistance that the states receive, it does help close the gap and is definitely a step in the right direction,” Tenorio said.

He acknowledged the help of Rep. Madeleine Bordallo of Guam, Rep. Eni Faleomavaega of American Samoa, and Rep. Donna Christensen of the Virgin Islands in pushing for the measure.

“Without their assistance, it would be difficult to keep the federal government aware of the CNMI’s needs. Until we get a delegate to champion our own causes, we must rely on their generosity. This is a great example of inter-territorial cooperation,” Tenorio said. (PR)