Congresswoman Madeleine Z. Bordallo announced the passage of an amendment in the Deficit Reduction Act of 2005, H.R. 4241, which provides a 33% increase in Medicaid funding in Fiscal Year 2006 and an additional increase of 66% in Fiscal Year 2007 to Guam, the U.S. Virgin Islands, American Samoa and the Commonwealth of the Northern Mariana Islands.  The amendment was a joint effort between Congresswoman Bordallo (D), Congressman Eni Faleomavaega of American Samoa (D), Congresswoman Donna Christensen (D) of the U.S. Virgin Islands, and Congressman Dan Burton (R) of Indiana.

“This amendment was included in the budget reconciliation measure by Chairman Joe Barton at our request. This is the culmination of an effort to increase the Medicaid cap for the past two years,” Congresswoman Bordallo said. “Two years ago, we brought an amendment to the floor during debate on the FY2005 budget for the Department of Health and Human Services.  We agreed to withdraw the amendment with the commitment from Chairman Joe Barton to work with the territorial Delegates and Chairman Dan Burton on this issue.  Chairman Barton worked with us to include the Medicaid increases in the portion of the reconciliation bill that his committee had jurisdiction over.”

“This significant increase in the Medicaid funding for the territories will make a difference in providing adequate health care in the territories.  The increase of 66% brings us closer, and in some cases actually achieves, full Medicaid parity.” Bordallo added.

The Medicaid cap proposal involved securing an extra provision in the Budget Reconciliation for 2006 by amending a section of the Social Security Act.  The bill provides an increase in yearly Medicaid funding for Guam, the U.S. Virgin Islands, Puerto Rico, American Samoa, and the Commonwealth of the Northern Mariana Islands (CNMI) for the next five years.  The breakdown is as follows:

·        Guam will receive $2.5 million for fiscal year 2006 and $5 million for fiscal year 2007

·        CNMI will receive $1 million for fiscal year 2006 and $2 million for fiscal year 2007

·        America Samoa will receive $2 million for fiscal year 2006 and $4 million for fiscal year 2007. 

These increases, added to the Medicaid funding in FY 05, become the new floor for annual increases that are adjusted for inflation. The House bill passed on November 18 by a slim vote of 217 to 215.  The Senate budget reconciliation bill does not include the Medicaid provision for the territories, among other differences.  A House and Senate conference committee will have to resolve the differences between the House and Senate versions of the budget reconciliation bill.  Congresswoman Bordallo and the territorial Delegates will urge the conferees to adopt the House-passed Medicaid increases for the insular areas.

“This is a major increase in Medicaid funding, and coupled with the past increase in Compact-impact assistance ($14.2 million per year for Guam), puts us on a path to giving the territories the same level of federal health assistance as the states.  I particularly want to thank Congressman Dan Burton and Chairman Joe Barton for supporting the effort to help all American citizens in the insular areas receive the Medicaid funding increases to make Medicaid more accessible,” Bordallo concluded.