Velázquez Sends Letter to Leadership to Avoid Looming Medicaid Cliff in Puerto Rico

Washington D.C.-Today, Rep. Nydia M. Velázquez (D-NY) led four Members of Congress in sending a letter that urges Leadership to avoid a looming Medicaid cliff in Puerto Rico by temporarily increasing Puerto Rico's FMAP to 100 percent and upholding the CMS' determination to extend the Medicaid annual funding cap for Puerto Rico at FY 2020 levels, or $2.9 billion, in any end of the year government funding package.

Although Puerto Rico deserves additional legislative action to receive an equal, permanent, and stable funding stream to operate its Medicaid program, Congress should at least adopt temporary actions to prevent yet another disastrous Medicaid cliff in the island.

If Congress fails to act now, Puerto Rico will lose more than $2 billion in federal funding to serve half of its population over the next fiscal year. "This scenario would trigger immediate and detrimental cuts to the program's eligibility, benefits, and provider payments. The cliff would also deal a further blow to Puerto Rico's balance sheet, as the territorial government would be forced to pull funding away from other critical investments, such as the newly made pension trust for public sector workers, long-term capital investments, and emergency reserves," wrote Congresswoman Velázquez.

The letter also highlights that "For a territory that is still grappling with economic decline, bankruptcy, a pandemic, and the aftermaths of multiple natural disasters, additional financial burdens could prove to be catastrophic."

In addition to Velázquez, this letter was signed by Representatives Alexandria Ocasio Cortez (NY-14), Ritchie Torres (NY-15), Adriano Espaillat (NY-13), and Darren Soto (FL-09).

A PDF of the letter is online here.