32.7% increase in Medicaid beneficiaries

Commonwealth Medicaid Agency director Helen C. Sablan reports a 32.7% increase in Medicaid beneficiaries from February 2020 to July 10, 2020, and fears that the CNMI may lose millions of dollars in health care funding if the government fails to adequately fund the program.

Sablan informed Sen. Jude U. Hofschneider (R-Tinian), who chairs the Senate Fiscal Affairs Committee, that they have been working hard to ensure that the program complies with the requirements of Title IX and will meet the expectations of the U.S. Congress and the Centers for Medicare and Medicaid Services.

In her analysis and assessment of the Medicaid program that she submitted to the House of Representatives as it works on the agency’s budget for fiscal year 2021, Sablan said that, with the House proposed budget of $2.71 million for the agency, compared to the $8.93 million allocated for territory matching, that means the CNMI Medicaid will be short by $6.21 million.

She said they do not believe that it is in the interest of the CNMI to lose millions of dollars in health care funding especially in an economic time when federal expenditures are one of the few sources of economic input into the economy.

She noted that there has been a substantial increase in Medicaid beneficiaries due to the furloughs and layoffs, resulting from the economic impacts of the COVID-19 pandemic.

She said the funding her agency asked for is required to make reasonable and appropriate progress to administer the program and submit data and reports to the federal government.

“We are hopeful that the CNMI policymakers agree and in funding the Medicaid program,” the director said.

Sablan said the proposed House budget provides a total of $2.52 million for the Medical Assistance Program and Enhanced Allotment Plan of Medicaid, and $187,400 for the administration of the Medicaid program.

She said as a federal-state/territory program, the administration costs are set in Title XIX to be 50-50% for program administration.

Sablan said absolutely no funds were provided from the proposed FY 2021 House budget for utilities, office supplies, or any other operational expenses that would be funded at 50-50%.

The director noted two significant consequences that result from the budget shortfall.

First, the failure to fund the program would result in a loss of millions of dollars in health care funding that cannot be spent because of the lack of a territory match, she said.

Second, the director said, both the private providers and clinics of the Commonwealth Healthcare Corp. will not be paid for the “fee for services” or pharmaceuticals patients’ needs without the territory match until the next fiscal year.