Northern Mariana Islands (CNMI) Medicaid Overview
“The Medicaid program in the Commonwealth of the Northern Mariana Islands (CNMI) differs from Medicaid programs operating in each of the 50 states and the District of Columbia. Some of the key differences are:
- CNMI became a territory in 1978 and its Medicaid program was established in 1979. It is a 100% fee-for-service delivery system with one hospital servicing the territory. There are no deductibles or co-payments under the CNMI Medicaid program. Unlike states, CNMI residents are not eligible for Medicaid Part D low-income subsidies; instead the Medicaid program receives an additional grant through the Enhanced Allotment Plan (EAP) which must be utilized solely for the distribution of Part D medications to dual-eligible or low-income Medicare eligible individuals.
- CNMI operates its Medicaid program under a broad waiver granted under the authority of Section 1902(j) of the Social Security Act. This provision allows the Secretary to waive or modify any requirement of Title XIX, in regards to CNMI’s Medicaid program, with the exception of three: the territory must adhere to the funding cap set under Section 1108 of the Act; the territory must adhere to the statutory Federal Medical Assistance Percentage (FMAP); Federal medical assistance payments may only be made for amounts expended for care and services described in a numbered paragraph of section 1905(a).
- Effective October 1, 2017 CNMI elected to allow individuals whose income is in excess of the established income criteria to spend-down to become Medicaid-eligible. Additionally, effective January 1, 2021 CNMI elected to cover otherwise eligible individuals who lawfully reside in CNMI in accordance with the Compacts of Free Association (COFA) between the US and Micronesia, the Marshall Islands and Palau.
- Through Section 1108 of the Social Security Act (SSA), each territory is provided base funding to serve their Medicaid populations. Over the past decade Congress has temporarily increased federal funding for the territories’ Medicaid Programs via a number of specific statutory provisions. For federal fiscal year 2021 CNMI’s ceiling is $62.3 million.
- Unlike the 50 states and the District of Columbia, where the federal government will match all Medicaid expenditures at the appropriate federal matching assistance percentage (FMAP) rate for that state, in CNMI the FMAP is applied until the Medicaid ceiling funds and any other specified federal funds are exhausted. The statutory FMAP rate increased to 55%, effective July 1, 2011. Starting in January 2014 Congress has temporarily increased the FMAP along with federal funding, bringing CNMI’s FMAP to 83% for federal fiscal year 2021.”