Policy Center Says Medicaid Funding Critical to Remedying Puerto Rico’s Budgetary and Economic ...

[TexasTowelie]

Policy Center Says Medicaid Funding Critical to Remedying Puerto Rico’s Budgetary and Economic Problems.

Puerto Rico receives much less federal healthcare assistance as a territory than it would as a state. Puerto Rico’s Resident Commissioner and other members of the legislature have been expressing concern about this inequality for some time. Fixing the inequity has been part of a number of proposals as the federal government looks for ways to improve Puerto Rico’s economic position without creating hardship for the people living on the Island.

Especially with the rise of Zika and the continuing exodus of doctors from the territory, helping with Puerto Rico’s healthcare problems is increasingly seen as an important humanitarian effort.

But repair of the Medicaid situation in Puerto Rico may also help get Puerto Rico’s economy back on track. The Center on Budget and Policy Priorities has recently issued a report concluding that the funding issues played a big part in causing the financial problems that Puerto Rico faces now. Fixing them will be essential going forward.

All 50 states and the District of Columbia pay part of the cost of Medicaid. The part the federal government pays is known as the federal Medicaid matching rate or FMAP. The average FMAP for the States is 57%; the specific amount depends on the average income in each State. Since Puerto Rico has a lower per capita income than any state, it may be surprising that the federal government covers just 55% — only slightly more than the average. If the FMAP were calculated for Puerto Rico as it is for States, the CBPP says, federal funds would cover 83% of the costs.

Read more: http://www.puertoricoreport.com/policy-center-says-medicaid-funding-critical-remedying-puerto-ricos-budgetary-economic-problems/