HONOLULU — Hawaii will save about $21.5 million by tapping into federal funding to pay for health care for people living in the state under the Compact of Free Association, a newspaper reported Tuesday. ADVERTISING HONOLULU — Hawaii will save
HONOLULU — Hawaii will save about $21.5 million by tapping into federal funding to pay for health care for people living in the state under the Compact of Free Association, a newspaper reported Tuesday.
Roughly 7,500 adult migrants from the Federated States of Micronesia, Palau and the Marshall Islands will be able to sign up for medical coverage under the Affordable Care Act, the Honolulu Star-Advertiser reported.
Under the compact, Pacific Island citizens freely live and work in the U.S. with no time constraints in exchange for allowing the U.S. military to control strategic land and water areas in the region.
The federal government used to pay for health care for the migrant group, which qualified for benefits such as Medicaid. But the Welfare Reform Act of 1996 stopped that eligibility. Hawaii filled the funding gap for more than a decade.
In 2009, Gov. Linda Lingle’s administration sought to slash benefits with a program to deny coverage for chemotherapy and dialysis treatments, and limit doctor visits and prescriptions.
Implementation of the plan was blocked by a federal court injunction that was later overturned. However, state officials indicated they did not want to proceed with the plan.
Officials say medical expenses for Hawaii’s Compact of Free Association residents will be now be subsidized on a sliding scale based on income levels.
Children and pregnant women who are part of the migrant group will remain covered by Medicaid, using state and federal funds.
To avoid a gap in coverage, residents living in Hawaii under the compact must enroll by Feb. 15 by signing up with the Hawaii Health Connector.
