Puerto Rico needs a realistic Fiscal Plan that guides it toward a more sustainable economic future. Instead, the Oversight Board created by Congress to be in charge of Puerto Ricos recovery has developed its current Fiscal Plan based on unreliable data and assumptions, according to an analysis published on RevitalizePuertoRico.com, a project of Assured Guaranty Ltd. The analysis of the plans flawed federal Medicaid funding projections is summarized below and available in detail at RevitalizePuertoRico.com/medicaid.
Federal Medicaid funding has a critical role in providing affordable health care to the people of Puerto Rico, especially as the island works toward a sustainable recovery, and Congress has a record of providing support for the program, averaging 55% of Puerto Ricos total Medicaid spending over the past 11 years. Yet, the Oversight Boards current Fiscal Plan assumes that federal support of the islands Medicaid program will drop precipitously.
Why Does the Oversight Board Assume Congress Will Drastically Reduce Puerto Ricos Medicaid Funding?
- The Oversight Boards current Fiscal Plan illogically assumes that the federal share of Puerto Ricos Medicaid funding will plunge from 83% in fiscal year 2019 to 10% in fiscal years 2021-2023.
- Whats more, the Oversight Board counterintuitively accepted the implausible assumption that as Puerto Ricos population declines by almost 6% from fiscal 2018 to 2023, Medicaid spending will rise 35%.
Flawed and inadequately disclosed Fiscal Plan assumptions stand in the way of Puerto Ricos ability to achieve fiscal responsibility and regain capital market access essential steps toward a sustainable recovery and brighter future for Puerto Ricos residents.
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See a detailed analysis of the financial impact of Fiscal Plan Medicaid projections at RevitalizePuertoRico.com/medicaid.
For a deeper understanding of the financial issues involved in Puerto Ricos recovery, including history, news and informed opinion, visit RevitalizePuertoRico.com.
The Revitalize Puerto Rico effort is funded by Assured Guaranty. Assured Guaranty helps provide funding for public projects such as the construction of hospitals, schools, roads and bridges. We have done this in Puerto Rico and in cities and communities across America. Our goals are to help municipal governments gain access to funding for essential public projects at more affordable rates and to protect investors in the bonds we insure from defaults on principal or interest payments. Once we insure a bond, we are committed to make up any shortfalls in payments by the issuer until the bond matures, which means we have a long-term investment in the health of the Puerto Rico economy.
Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Managing Director, Investor Relations and Corporate Communications
Vice President, Corporate Communications