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Puerto Rico Health & Insurance Conference

Governor Jenniffer Gonzalez Colon opened the Puerto Rico Health & Insurance Conference, organized by the Puerto Rico Chamber of Commerce, with a speech acknowledging recent improvements in federal healthcare funding and also pointing out current and future challenges.

“The Puerto Rico healthcare system performs well,” she began as the conferenced opened on March 20, “and yet it operates under structural constrains and budgetary restrictions not seen anywhere on the mainland.”

She also pointed out that healthcare is different for Puerto Rico. Because of the high poverty rate on the Island, 1.3 million — nearly half — the residents are Medicaid beneficiaries. Even though Puerto Rico faces fewer penalties for reporting and other errors than many states do, Puerto Rico is more dependent on the federal government for healthcare funding than the states are. Unfortunately, Puerto Rico also receives less funding as a territory than it would as a state. As a result, the Island must frequently beg Congress for additional funding.

The Danger of Medicaid Cliffs

“Temporary improvements do not equal sound healthcare policy,” she said. “Medicaid is the key component to our entire health system.”

“We do more with significantly less resources,” she said. “Those are not just numbers. They’re our parents, our grandparents.”

The most serious issue

60-70% of the population of Puerto Rico has at least one chronic condition, including diabetes, cancer, or heart disease. And one third of the people in Puerto Rico say their health is fair or poor. One reason for these differences is the higher poverty rate, but the aging population is another significant factor.

Unlike the states, Puerto Rico has capped federal funding for health care. States receive reimbursement of up to 83% of the actual amount they spend, but Puerto Rico has a defined limit on funds. If the need is greater than the amount provided for the residents of Puerto Rico,  the territory government must make up the difference or the people must go without.  What’s more, Puerto Rico is reimbursed at the rate of just 55%.

This means that healthcare in Puerto Rico is, quite simply, underfunded.

Other speakers

The agenda for the meeting included a wide range of other speakers, from insurance company executives to Rep. Greg Murphy, M.D. (R-NC), a member of the Way & Means Committee and the Chairman of the Congressional Doctors Caucus. The Hon. Gabriel Rodríguez Aguiló, Chairman of the Health Committee of the Puerto Rico House of Representatives, and the Hon. Víctor M. Ramos-Otero, MD., Secretary of the Puerto Rico Department of Health, represented the territory government.

Former Governor Luis Fortuño was a member of a panel with journalists, and Dr. Mehmet Oz, Administrator of the U.S. Centers for Medicare and Medicaid Services sent an encouraging video message.

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