Pacific / Northern Marianas

US House and Senate approve $27m for CNMI's Medicaid program

10:21 am on 27 September 2024

Photo: RNZ Pacific/Mark Rabago

The US House of Representatives and Senate has approved US$27.1 million for the Commonwealth of Northern Mariana Islands (CNMI) Medicaid program.

Delegate Gregorio Sablan said this is ensuring that the local Medicaid program will begin fiscal year 2025 on 1 October debt-free.

The White House has said the President will sign the US Congress' Continuing Appropriations and Extensions Act of 2025, where the appropriations for CNMI Medicaid was tied in.

Sablan said the funds will allow the local Medicaid program to pay its bills to the Commonwealth Healthcare Corporation and private healthcare providers that have been piling up over the last two years.

"Our Medicaid program has been under severe financial pressure, because so many people became eligible for this form of federal health insurance during the pandemic, and during the on-going economic downturn in our islands," Sablan said.

"Medicaid's inability to pay its bills has put our hospital at risk and forced health providers to turn away patients.

"[This week's] action, appropriating an additional $27.1 million, will put Medicaid finances back on track, so those in need of health services are cared for."

Meanwhile, the Commonwealth Healthcare Corporation (CHCC) extended its appreciation for the passage of the Continuing Appropriations and Extensions Act of 2025.

"This significant legislation includes Section 211, which allocates $27.1m in Medicaid funding to the Northern Mariana Islands, addressing the healthcare funding shortfall for Fiscal Years 2023 and 2024," the CHCC said.

Through this financial support, CHCC explained that Medicaid will be able to settle the $8,698,852 owed to CHCC for services rendered between June 2023 and September 2023.

"While this funding offers temporary relief, it highlights the broader issue at hand - the need to eliminate the Medicaid cap for US territories to ensure sustainable, long-term healthcare funding."

Furthermore, the funding will mitigate prior shortfalls in the CNMI's Medicaid program, which faced unprecedented challenges due to increased enrollment during the peak of the Covid-19 pandemic and the economic strain caused by natural disasters.