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Thursday, March 18, 2010

Historic Achievement for Puerto Rico in Health Care Reform Legislation

WASHINGTON, DC- The Resident Commissioner, Pedro Pierluisi, characterized the provisions contained in the health care reconciliation bill released today as a unprecedented triumph for Puerto Rico. The bill will be voted on by the House of Representatives and the Senate in the coming days.

After months of long and intense negotiations, Puerto Rico has achieved a result that will triple the funding that the Island receives for its Medicaid program and that will enable Puerto Rico, beginning in 2014, to establish a health insurance exchange, which is a new insurance market regulated and subsidized by the federal government.

Specifically, the reconciliation bill will increase the current federal contribution to Puerto Rico’s Medicaid program by about 182%, which means that Puerto Rico is estimated to receive a total of $8.624 billion in federal Medicaid funding over the next nine years (2011-2019). Unlike the bill previously approved by the Senate and the proposal recently put forward by the White House, the reconciliation bill would provide the government of Puerto Rico with flexibility to determine how it can most effectively use this new Medicaid funding to improve services and expand coverage.

In addition, the reconcilation bill allows Puerto Rico to establish a health insurance exchange and provides $925 million to subsidize the cost of insurance for Island residents of modest means who earn too much to qualify for Medicaid.

“This battle has been long and difficult, but I made a pledge to the people of Puerto Rico that I would not rest until they were treated fairly. Today I can say that the reconciliation bill—which will be voted in the next few days—substantially improves the treatment that Puerto Rico would have received under the Senate bill and the initial White House proposal. It guarantees that the government of Puerto Rico will have the resources it needs to improve services and expand coverage for our people,” said Pierluisi.

On February 22, the White House released a proposal intended to bridge the gap between the health care bills passed by the Hosue and Senate. The proposal was immediately denounced by Pierluisi as discriminatory towards Puerto Rico, insofar as it provided an insignificant increase in Medicaid funding, imposed new mandates and restrictions on how that funding could be used, and excluded Puerto Rico from the health insurance exchange.

Last Thursday, Pierluisi served as the spokesperson for Puerto Rico and the other territories before President Obama, when the members of the Congressional Hispanic Caucus were invited to the White House to discuss the President’s proposal. During the meeting, Pierluisi reiterated his opposition to the proposal and urged President Obama to intervene in favor of fair treatment for Puerto Rico.

“Today we see the results of our countless efforts, not only from my office, but also from our Governor and his team in Washington, our local legislative leaders, and so many others who fought for this cause. The next and final step will be an up-or-down vote by the House and the Senate—and the rest will be history,” said the Resident Commissioner.

“I want to thank the entire leadership of the House of Representatives for their support, as well to convey my deep gratitude to our principal allies in the Senate: Robert Menéndez (D-New Jersey), Chris Dodd (D-Connecticut) y Charles Schumer (D-New York), who fought so valiantly on our behalf. I also want to recognize and express my gratitude to President Obama; the director of the White House Office of Health Reform, Nancy-Ann DeParle; and the director of the White House Office of Intergovernmental Affairs, Cecilia Muñoz,” the Resident Commissioner said.