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Palacios: CHCC expanded on‑island care; Medicaid FMAP increased to 83% and $20M commitment planned
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Summary
The governor and Medicaid officials told the joint session CHCC expanded specialty services, reduced off‑island referral costs from $19 million to about $6 million, and that the Commonwealth secured a higher Medicaid federal medical assistance percentage; the administration pledged up to $20 million over four years through an 1115 waiver forprevent
Governor Arnold I. Palacios and Medicaid officials described steps to expand on‑island care and to reduce off‑island referrals during the joint session.
"CHCC has expanded on island services," Palacios said, noting hires of specialists, new clinics and upgraded equipment. He said the Commonwealth Healthcare Corporation reduced medical referral costs from $19,000,000 to about $6,000,000 in two years.
George Cruz, director of the Commonwealth Medicaid Agency, told the joint session that the agency covered a high share of the population under presumptive Medicaid during the public health emergency and that, going into 2025, the agency covered more than 18,000 beneficiaries (about 46% of the CNMI population as presented). He said the agency will streamline applications and processes with online options and work to reduce fraud, waste and abuse.
Palacios said the administration increased the Medicaid federal medical assistance percentage from 55% to 83% (as stated in the address) and committed up to $20,000,000 over four years through an 1115 demonstration waiver to support evidence‑based community prevention programs for chronic disease management, tobacco cessation and substance use disorder services.
The governor and Medicaid officials emphasized telemedicine expansion for Rota and Tinian, increased eligibility for cancer treatment to age 67, and a new Medicaid enterprise system to automate eligibility and claims processing. The transcript attributes these program changes to CHCC and the Commonwealth Medicaid Agency.
