By JOY BLACKBURN
Thursday, February 9th 2006
President Bush on Wednesday signed a bill into law that will provide a major cash infusion to the territory's medical assistance program for the poor.
A small provision in the Deficit Reduction Act of 2005, which cleared Congress Feb. 1, gives the Virgin Islands an additional $2.5 million in Medicaid dollars this year and an additional $5 million next year.
The increased funding level then will become the territory's new baseline for federal Medicaid funding.
"I'm very glad that we were able to get these additional dollars and sorry that it came in such a terrible piece of legislation that hurts Americans," V.I. Delegate to Congress Donna Christensen said Wednesday afternoon.
Ironically, the provision that increases Medicaid funding to all the territories is contained in legislation that curbs federal spending by some $39 billion over the next five years, targeting Medicare, Medicaid and some social programs.
Christensen said that because Medicaid funding to the territory already is so low, she does not think the Medicaid spending cuts contained in other parts of the bill will affect the Virgin Islands.
"We're below the radar screen," she said.
Each state or territory shares the costs of Medicaid with the federal government. However, while the states are not limited on federal reimbursements, all the territories are subject, by law, to a cap.
In the Virgin Islands, that cap had been set at about $6.9 million this year. The cap strains the territory's health care system and causes eligibility requirements for the Medical Assistance Program - the territory's Medicaid program - to be set far below the federal poverty level to restrict the number of residents who qualify for the limited resource.
While the new legislation does not remove the cap, it raises it, giving the Virgin Islands a total of about $9.4 million this year and about $11.9 million in Fiscal Year 2007. In later years, the baseline for Medicaid funding will remain at that level, with annual adjustments for inflation.
The chief executives at the territory's two hospitals, who had expressed guarded optimism as the bill was batted around between the U.S. Senate and the House, said Wednesday that they hope the hospitals will get top priority when the money is doled out.
"Obviously, any increase in health care funding to the territory is definitely good news because it will help us to be able to improve the quality of care in the territory," said Gregory Calliste, chief executive officer at Luis Hospital.
"I honestly didn't think it would make it," said Rodney Miller, Schneider Regional Medical Center chief executive officer. "We're pleased with the relief and can't wait for it to come. We'll be reaching out to the health commissioner."
Neither Calliste nor Miller knew how much of the money might make its way to the hospitals to pay outstanding bills owed by the Medical Assistance Program, but both said they are eager to meet with V.I. Health Commissioner Darlene Carty about it.
The V.I. Health Department administers the Medical Assistance Program. The Daily News was unable on Wednesday to reach Carty for comment and more information on how the money would be used.
Christensen said she suspects that the additional money, at least initially, will go toward paying outstanding bills rather than liberalizing the program's eligibility requirements. However, she said that she hopes as the increased funding is sustained, the program will be able to offer assistance to more Virgin Islanders.
The provision also provides additional Medicaid dollars for Puerto Rico, Guam, American Samoa and the Northern Mariana Islands.
Christensen and delegates from the other territories have pushed unsuccessfully for years to completely do away with the Medicaid cap.
"We can definitely see that the delegates' work paid off," Miller said. Calliste said he hopes those efforts to remove the cap altogether will continue.
Christensen characterized the provision as a joint effort by herself, Delegate Madeleine Bordallo of Guam, Delegate Eni Faleomavaega of American Samoa and Congressman Dan Burton of Indiana.
- Contact Joy Blackburn at 774-8772 ext. 303 or e-mail blackburn@dailynews.vi
© 2005, Virgin Islands Daily News
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