Congress has clinched a deal to avert a lapse in critical dollars for Puerto Rico’s Medicaid program for five years and permanently beef up federal dollars for the other U.S. territories, according to two people familiar with the negotiations.
The safety net program is funded differently in the states than it is in the U.S. territories, requiring Congress to periodically re-up certain dollars the federal government provides to their Medicaid programs. The beefed up dollars the territories receive are set to lapse at the end of the week without action from Congress.
for the territories’ Medicaid programs, raising the specter of cuts to optional benefits and reduced payments to hospitals. To pay for the change, lawmakers would get rid of a controversial Biden administration move, according to one congressional aide. There is a cap on the amount of money the territories’ Medicaid programs can receive from the federal government each year. The Biden administration last year interpreted language from recent laws to mean the federal government could give at leastand Republicans have been itching to get rid of the move.
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