The Puerto Rico government and a healthcare coalition are lobbying to prevent cuts in healthcare spending that they say would hurt the island's economy.
The U.S. Center for Medicaid and Medicare Services (CMS) plans to cut reimbursement rates for Medicare Advantage companies in Puerto Rico by 11% on June 1, according to the coalition. Companies in Medicare Advantage provide most or all of the services the government normally provides in Medicare parts A and B.
The cuts will not only jeopardize care for millions of Puerto Rico residents but "could result in a dramatic blow to Puerto Rico's weak economy," the Puerto Rico Healthcare Crisis Coalition said in a press release.
Healthcare represents 20% of Puerto Rico's gross domestic product, according to the coalition. Puerto Rico's economy has been either in contraction or weak for eight years, pressuring its ability to pay off its debt.
"Timely action is critical," said Pedro Pierluissi, Puerto Rico's nonvoting representative in Congress. "Inaction would be unacceptable from a moral and public policy perspective."
Puerto Rico residents pay full Medicare and Social Security taxes but the Medicare Advantage program is capped even before the planned cuts at 60% of the average rate in the United States.
The CMS cannot legally change the planned Medicare Advantage rates published on April 6, a CMS spokesman said.
"CMS is committed to making the Medicare Advantage program a high-quality option for all Medicare beneficiaries, including those residing in Puerto Rico," the CMS spokesman said in an email. "CMS appreciates the comments we received on the proposed Medicare Advantage rates and policies, including those that described the unique circumstances in Puerto Rico. In the final Rate Notice, we committed to examining an issue regarding how our rate setting policies work in Puerto Rico to determine whether an adjustment should be made for the 2017 rates."
In response to the CMS statement, Dennis Rivera, chair of the Puerto Rico Healthcare Crisis Coalition said: "We are disappointed that CMS refuses to take responsibility for this crisis, but we are hopeful that President Obama and [Health and Human Services Department] Secretary [Sylvia] Burwell will intervene so that the people of Puerto Rico do not lose access to the healthcare they need."
