Senate president asks Kennedy to end health care funding disparities

Senate President Thomas Rivera Schatz

By THE STAR STAFF

Senate President Thomas Rivera Schatz has called on U.S. Health and Human Services Secretary Robert Kennedy to take administrative action to correct long-standing disparities in federal healthcare funding for Puerto Rico, arguing that chronic underfunding threatens the island’s healthcare system and accelerates the exodus of medical professionals.

In a formal letter addressed to Kennedy and the leadership of the Centers for Medicare & Medicaid Services (CMS), Rivera Schatz emphasized that Puerto Rico’s 3.2 million U.S. citizens remain at a significant disadvantage compared with residents of the mainland and even neighboring territories. He noted that the U.S. Virgin Islands receives roughly 29% higher Medicare reimbursement rates, despite frequently transferring patients to Puerto Rico due to their more limited healthcare infrastructure.

Rivera Schatz highlighted Puerto Rico’s strategic importance to the United States, describing the island as a regional hub for federal operations, humanitarian assistance, emergency response, and public‑health preparedness throughout the Caribbean and Latin America.

While Puerto Rico has the highest Medicare Advantage (MA) penetration rate in the nation, Rivera Schatz said the island continues to receive disproportionately low payments. He attributed this to a combination of statutory barriers affecting Part A calculations, unusually low Medicare Fee‑for‑Service participation that depresses benchmarks, and long‑standing data anomalies that require technical corrections.

“These factors have produced payment outcomes that do not accurately reflect beneficiary risk, cost of care, or access needs,” Rivera Schatz wrote, urging CMS to use its existing administrative and regulatory authority -- without requiring congressional action -- to adjust formulas, correct data issues, and refine methodologies ahead of the Calendar Year 2027 Medicare Advantage payment notice.

He warned that ongoing underfunding has weakened Puerto Rico’s physician workforce, strained access to care, and fueled migration of both patients and doctors to the mainland United States, further destabilizing the island’s healthcare system.

As part of his outreach, the Senate President extended a formal invitation for Kennedy and CMS leadership to visit Puerto Rico. He said such a visit would allow federal officials to observe directly the dual reality of the island’s contributions to U.S. strategic interests and the urgent challenges posed by inequitable healthcare funding.

Rivera Schatz affirmed the Puerto Rico Senate’s commitment to collaborating with the administration of President Donald Trump on policies that advance healthcare equity, stabilize local institutions, and promote long‑term economic sustainability.