Hospital Assn. warns of potential loss of Medicaid coverage in 2027

By THE STAR STAFF

Puerto Rico Hospital Association Executive President Jaime Plá Cortés warned on Wednesday that between 700,000 and a million people could lose their “Plan Vital” coverage if Congress does not approve a new federal funding allocation for Medicaid before Oct. 1, 2027.

“Puerto Rico has just over a year to secure a solution in Congress, and that work must happen now,” Plá Cortés said in a written statement. “What is at stake is our people’s access to healthcare services and the entire system’s ability to continue meeting their needs.” 

Currently, Puerto Rico relies on temporary congressional allocations totaling nearly $19.6 billion over a five-year period, with a 76% federal matching rate.

If new legislation is not passed, the federal contribution could revert to the formula established under the Social Security Act starting Oct. 1, 2027 -- limiting funding to some $500 million annually with a 55% federal matching rate, according to the organization.

The Hospital Association believes that a reduction in available funds would affect not only Plan Vital beneficiaries but also hospitals, physicians and other healthcare providers.

“A reduction of this magnitude would directly impact providers’ ability to sustain the services their patients need,” Plá Cortés said.

Gov. Jenniffer González Colón has established a task force that includes the Hospital Association to address Medicaid funding.

The association maintained that a long-term solution must eliminate the annual cap on federal Medicaid funds applicable to Puerto Rico and reduce reliance on temporary allocations approved by Congress.