In response to our story yesterday about the lack of local match for the $84 million that Congress approved last year for American Samoa’s Medicaid Program Congresswoman Aumua Amata highlighted two major reforms made during the current Congress that directly benefit American Samoa.
First, instead of the longstanding 55-45 percent split, American Samoa benefits from a much better long term 83-17 percent split, in which the federal government takes on the “lion’s share” of 83 percent of the cost.
Secondly, the cap was raised from $12 million to $84 million, meaning that’s the highest limit that American Samoa is allowed to spend — giving much more room and flexibility than before.
“Our new federal share is a big improvement. It’s the highest possible rate except in major emergencies like Storm Gita, and it equals the best rate under the FMAP funding formula anywhere else in the United States,” said Aumua Amata.
“This greatly reduces ASG’s cost share, and means no state in the country has a better federal rate than ours. That’s such a major change, because the states no longer have a built-in Medicaid formula advantage in federal support over a small territory like they did before. Then, because of COVID-19, Congress actually increased the federal share even more for now to nearly 90 percent.”
She added, “Congress also raised the cap up to $84 million so that American Samoa would not be unnecessarily constricted by hitting a spending ceiling, like the old cap of only $12 million, which could cause tough choices.
“I want to be clear, the higher cap is a blessing. That space is there now if we need it in unpredictable times and as health costs change.
“These are millions of dollars in clear improvements for American Samoa,”
Amata concluded. “We should not under any circumstances want to return to the constraints of a low $12 million cap, or the burden of the former 45 percent FMAP share. We are much better off with these important changes.”
