THE $65 million that the federal government has allocated to the CNMI Medicaid Agency “was entirely depleted,” leaving the Commonwealth with a $30 million shortfall, Gov. Arnold I. Palacios told U.S. Department of Health and Human Services Secretary Xavier Becerra.
In his letter to the U.S. health official on April 3, 2024, the governor said the funding gap in Medicaid “impacted our ability to compensate our healthcare providers, particularly the Commonwealth Healthcare Corp.”
To date, the governor told Becerra, the CNMI government owes CHCC nearly $9 million for services rendered to Medicaid recipients in the Commonwealth.
Palacios is urging Becerra to closely review and consider CNMI Medicaid’s request to use the Medicaid funds allotted to the Commonwealth for fiscal year 2024 to address the payment of $8.7 million for healthcare services in FY 2023.
“As governor, I am deeply committed to ensuring that all residents of the CNMI have access to quality healthcare services,” Palacios said.
Like other U.S. territories, he said the CNMI “grapples with funding limitations, including a cap on Medicaid funding. This structure, although designed to manage resources, significantly hampers our ability to respond effectively to unforeseen healthcare needs and emergencies,” Palacios said.
“This was starkly evident when the number of Medicaid enrollees tripled due to presumptive eligibility during the Covid-19 pandemic. Despite the unprecedented increase in demand for Medicaid services, our Medicaid funding remained static, not reflecting our community’s critical need,” Palacios said.
He told Becerra that by the end of FY 2023, the allocated $65 million for the Commonwealth’s Medicaid program was entirely depleted, “leaving us with a $30 million shortfall.”
The governor said since October 2023, representatives from the CNMI Medicaid Agency and the Centers for Medicare & Medicaid Services’ Region IX Office “have been in discussions to identify viable solutions to this pressing issue.”
“I wish to extend my gratitude for your team’s ongoing support and engagement as we navigate these challenges,” the governor said.
He respectfully requests that HHS “explore all possible avenues and resources at its disposal to assist in resolving the outstanding Medicaid payments owed to the CNMI’s healthcare providers.”
He said addressing this matter is “not only critical for the sustainability of the CNMI’s healthcare system but essential for ensuring that its residents continue to have access to necessary medical care.”
