Palacios vetoes budget provision allowing HNP to use funds for inter-island medical referrals
Gov. Arnold I. Palacios has vetoed a section on the fiscal year 2025 budget that allows the Health Network Program (previously known as the Medical Referral Program) to use its funding to subsidize inter-island medical referrals.
According to a letter addressed to the Legislature following the signing of House Bill 23-115, House Draft 1, House Schedule 1, Senate Schedule 2, Palacios expressed that there were parts of the bill he vetoes before signing the legislation into Public Law 23-26.
One of the vetoes made was the disapproval of subsection (e) regarding the use of HNP funding for inter-island medical referral.
“I have disapproved the requirement in subsection (e) that the CNMI Medical Referral Program/ Health Network Program will include stipends, airfare, and lodging for patients and escorts in inter-island medical referral services,” he said.
Palacios explained that the appropriation will not suffice and if inter-island medical referral is necessary, the Commonwealth Healthcare Corp. should identify outside funding sources.
“The appropriation for the Health Network Program is insufficient to cover such costs. CHCC should have the flexibility to identify outside sources to address the budget gap,” he said.
The fiscal year 2025 budget sets aside $800,000 for the Health Network Program.
According to the budget proposal submitted by the Office of the Governor to the Legislature, the Office of the Governor is proposing a $800,000 allocation for the HNP program.
“This budget proposal allocates $800,000 of the total $6.5 million requested by CHCC for the operations and activities of the Health Network Program to defray the cost of medical care not available in the Commonwealth,” said the governor’s proposal.
However, based on CHCC’s projected expenditure for HNP for FY24, an allocation of $800,000 may not suffice.
Just last month, the program, under the CHCC, sent out a letter to its beneficiaries regrettably informing them that their subsistence benefits will be suspended Sept. 1, 2024.
Subsistence funding is money given to patients referred off-island for medical treatment—and their primary escort —for essential resources like food.
“We regret to inform you that beginning Sept. 1, 2024, subsistence benefits will be suspended until adequate funding for the beneficiaries is appropriated and made available to the Commonwealth Healthcare Corp.,” said the letter.
The letter further explained that the program is significantly underfunded resulting in this suspension.
“Per Commonwealth of the Northern Marianas Islands Public Law 22-33, the CHCC must operate the program ‘within budgetary appropriations.’ Unfortunately, the program continues to be significantly underfunded, with the last appropriation made in May 2024 via Saipan Local Law 23-15. Furthermore, a notice from the Office of Management and Budget said that HNP funding would be reduced by 2.15% for the remaining months of the current fiscal year,” said the letter.
“We are truly sorry for the inconvenience of this unavoidable but necessary actions,” the HNP letter further stated.
Fortunately, the suspension of the Health Network Program’s subsistence benefits was short lived with the CNMI government working in tandem to appropriate $380,000 to continue to provide these essential benefits to patients and escorts who are sent off-island for medical treatment.
In a press release from CHCC, they announced that subsistence benefits will continue for beneficiaries of HNP
This is thanks to allocations from Palacios and the Saipan and Northern Islands Legislative Delegation totaling $380,000.
Arnold I. Palacios
