In a letter issued to governors of the U.S. territories, Sebelius stated that although the new healthcare reform law defines “state” in reference to the 50 states and the District of Columbia, the territories fall under the Public Health Service Act.
She said the new law amends the health service act, however, there is an ambiguity as to which definition applies to the provisions modified by the ACA. Therefore, she concluded that, “with respect to the provisions at issue, the territories are included in the definition of ‘state.’”
This means Guam is eligible for the grant programs in the healthcare package, specifically the consumer assistance grants and the rate review grant.
However, Guam is not eligible to apply for the exchange planning grants, which fall outside of the health service act.
However, she added that each territory has the option to receive funds to make coverage affordable through an exchange starting in 2014.
Meanwhile, Congresswoman Madeleine Bordallo responded to an earlier letter from Lt. Gov. Mike Cruz, clarifying in further detail the impacts of the Health Care Act on Guam, particularly the Medicaid program.
“The new law increases the amount of federal assistance our island receives for the Medicaid program. The Government of Guam currently receives approximately $13.7 million a year in federal assistance. This will nearly double to $24 million for fiscal year 2011,” she wrote.
“Medicaid assistance will also continue to rise for the rest of the decade and will reach approximately $58 million by 2019. The federal Medicaid assistance our island receives will nearly triple in amount after adjusting for inflation,” she added.
