Resident Commissioner Calls for Fiscal Oversight Board Action to Prevent Medicaid Crisis

WASHINGTON, March 13 -- Res. Comm. Jenniffer Gonzalez-Colon, R-Puerto Rico, issued the following news release:

Resident Commissioner Jenniffer Gonzalez-Colon today demanded that the Puerto Rico Fiscal Oversight and Management Board fulfill its prime purpose of helping Puerto Rico balance its Budget and advise the President and Congress of the United States of the urgent need to replace the federal funding for health care for low income residents of the island, which will be exhausted at the end of this year and is essential to replace if the Budget is to be balanced.

In a letter today to all members of the Fiscal Oversight and Management Board, Gonzalez-Colon warned that if this funding need is not attended it would mean the loss of $1.3 billion in federal Medicaid contributions ones, due to the cap in total appropriations that under so-called Obamacare was imposed to the territories and not to the states. For Puerto Rico this would result in a nearly 80% cut in the federal funding representing 44% of the territory's total Medicaid expenditure.

"According to the U.S. Department of Health and Human Services, it would require the discontinuation of Medicaid coverage for more than 470,000 needy American citizens. This would also, however, increase needs for care that the territorial government could not ignore, with costs it would have to bear. The necessity would make it more difficult for the government to meet the Board's targets for healthcare savings", Gonzalez Colon pointed out.

Another consequence of this that the congresswoman emphasized to the members of the Board in her letter, is that ta situation would arise that would induce a greater rate of population flight to the other states, since individual Puerto Ricans doing so would be able to have access to fully funded Medicaid, including services the local program could no longer provide, being eligible to federal aid programs not available in the territory. "Such emigration would further depress the island economy, making it even harder for the local government to balance the budget".

Gonzalez-Colon pointed out that along with her, many others have joined together to raise consciousness among federal officials, Members of Congress and the HHS Secretary about the need to look into the Medicaid funding shortfall, and it is seemingly being understood and there is a desire to act about it. However, the Resident Commissioner indicated that the Board has not been Heard to advocate for this funding, despite being able to speak with authority about it, being responsible for the island's future budget.

"Additionally, Puerto Rico does not have the two Senators, five voting members of the House of Representatives, and seven Electoral Votes to ensure that its needs are met - although the problem would not exist in the first place if it did. The islands would be treated equally with the States in Medicaid and all other Federal programs. In Medicaid alone, this would provide several times as much in Federal assistance", Gonzalez-Colon stated.

The congresswoman added that she' s aware of the Board's sympathy about the need to replace the limited funds that will run out, but she was insistent about making clear that it is vital for them to act in an official quality advising Congress and the President of the problems that would arise if the current funding is not replaced.

"A president appointed each of you, and all but one of you were appointed at the recommendation of congressional leaders. Federal officials will hold your advice on this matter in the highest regard . . . and it could be pivotal. As of now, all that they know from the Board's letters to the Governor is that, despite your sympathy, you have recommended reducing spending for healthcare in the islands. These prescriptions can only undermine the effort to avoid the 'cliff.' So, I, again, respectfully request that the Board formally advise the Congress and the President of the problems that will result if the current funding is not replaced, making clear the current disparity with the States in Medicaid as well as the much worse one that would be a consequence of Federal inaction", Jenniffer Gonzalez wrote in closing.

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