Medicaid owes private dental clinics $1.6M

The CNMI Medicaid Office disclosed yesterday that due to the government’s severe cash flow problems, its ability to fulfill obligation to providers was hampered resulting in the private dental clinics’ decision to temporarily hold services to eligible clients.

Medicaid administrator Helen Sablan told Saipan Tribune yesterday that to date the agency owes a total of $1,561,291.75 to four private dental clinics on island.

Sablan revealed that of the four providers, Medicaid owes the biggest to Seventh Day Adventist, amounting to $889,465.50. The company, due to the payment delinquency, suspended the services since March 13 until further notice.

Smile Marianas has the second biggest collectibles from the Medicaid program, with $426,976 to date, while Toothworks is owed $207,871, also resulting in the immediate stop of the service to Medicaid clients until payments are received from the program.

The administrator added that Dental Care has unpaid obligations worth $36,979.25, which is also the reason why it suspended service to Medicaid customers two months ago.

Since the recent shutdown of the dental clinic at the Commonwealth Health Center, many parents of mostly Head Start students are finding difficulty in getting a dental provider from the private sector, as these clinics stopped accepting Medicaid clients due to growing receivables from the government.

Dental service is among the major requirements for all children enrolling for the Head Start program of the Public School System.

Sablan cannot immediately say yesterday as to when the obligations to providers will be paid, or when will the next payment will be made. She stressed the issue of the government’s financial condition.

“The issue is the cash flow. We have the federal funding, however, it requires 45 percent local funding matching and our local budget allocation is only $2.4 million for fiscal year 2012,” she told Saipan Tribune. Medicaid, which used to be under the Department of Public Health, was transferred to the executive branch along with the off-island medical referral program when the new healthcare corporation took over last year.

Sablan emphasized yesterday that the $1.6 million obligation cited above has not yet been transmitted to the Department of Finance.

“Finance is working on the report to see how much is the payable that is still pending in their system for our Medicaid providers,” added Sablan.

Press secretary Angel A. Demapan said yesterday that cash-flow problem is the reason why Gov. Benigno R. Fitial is pushing for the removal of matching funds for the Medicaid program.

“Obviously the issue is cash flow. This is why Gov. Fitial previously asked Delegate Kilili to help the CNMI by pushing legislation to reduce the local match requirement, just like other states and territories. While it is noble to secure tens of millions in federal Medicaid dollars, it has no impact when the local government’s ability to meet the 45 percent match is incapacitated,” said Demapan, adding that the Fitial administration had hoped that the CNMI delegate would have helped the Commonwealth secure a much lower matching requirement, and in turn, increase the local government’s ability to ensure that payments are made to providers.

“What’s the use of securing millions of federal dollars when the only way to use it is to match it with local dollars that the Commonwealth does not have?” added Demapan.