Guam Congressman Michael San Nicolas has confirmed that the U.S. House of Representatives has passed a disaster aid bill, which includes language raising the Federal Medical Assistance Percentage program subsidy for Guam from 55% to 100% under the Affordable Care Act.
The measure already has passed in the U.S. Senate and it now moves to the White House for final approval. President Donald Trump already has said he supports the legislation.
If the measure becomes law, it could save the government of Guam $5.6 million by eliminating the need to come up with local matching funds to access the remaining $47 million dollars in Medicaid funding still available to Guam until the end of this fiscal year on Sept. 30.
Gov. Lou Leon Guerrero issued a statement saying she is "glad" the measure has been approved by Congress and she is "optimistic that President Trump will honor his word" and sign the bill into law.
Congressional approval came as the Guam legislature’s appropriations committee was conducting a hearing on a bill to provide an additional $5.6 million to cover the current shortfall in Medicaid funding.
“Public health has exhausted its 2019 local Medicaid appropriation for this fiscal year with three months left unfunded,” said Sen. Therese Terlaje, who introduced Bill No. 78-35. She said $61 million in federal funds is waiting to be tapped, but no local matching funds are available.
However, midway through the hearing, Edward Birn, director of the Department of Administration, arrived to testify and announced passage of the measure in the U.S. House.
“It’s certainly good news as far as Guam is concerned,” Birn said.
Assuming the wording remains unchanged in the final version of the bill, it provides a 100% match and there will be “no need for local funds for Medicaid expenditures,” Birn said.
Tess Arcangel, the chief administrator for the Division of Public Welfare at the Department of Public Health and Social Services, also confirmed that if Guam can access 100% of its remaining Medicaid funds with the need for a match, the $5.6 million appropriation proposed in Bill No. 78-35 “will not be needed.”
Arcangel noted that millions more might also become available if the effective date for the 100% subsidy remains unchanged at January 1, 2019.
That would mean that GovGuam can apply for a refund of the 45% in matching funds its spent since the start of the year in order to qualify for the Medicaid dollars.
However, Arcangel said additional funds will still be needed for the Medically Indigent Program, which is 100% locally funded.
She said there only is $400,000 to $500,000 left in MIP funds, but there is about $3 million in unprocessed MIP claims.
“The MIP program will need additional funding” to cover its needs through the end of the fiscal year, she said.
Arcangel also pointed out that as of May 31 there were $24.5-million in outstanding Medicaid claims on the remaining $47 million in Affordable Health Care Act funds. $20.3-million of that amount are claims filed by Guam Regional Medical City.
In addition Arcangel says GRMC has notified her that they intend to submit another $35-million more in claims.
