'Obamacare' raises concerns

Written by Jerick Sablan
Pacific Daily News
Published in the Nov. 9, 2012 edition

A forum on the impact of the Patient Protection and Affordable Care Act showed how uncertain officials are about how the laws applies to Guam.

Sen. Dennis Rodriguez Jr. sent a variety of questions to the attorney general's office with issues brought up at a previous forum.

Phillip Tydingco, chief deputy attorney general at the AG's office, said interpretations of the act through other legal cases are hard to find. Because the act is relatively new there haven't been many cases against the measure to provide a deeper legal analysis.

The first two questions were in regards to an individual and employer mandate applying to Guam.

Another major issue discussed in the forum was the payment of about $74 million from the government of Guam to pay for tax credits to buy health insurance.

The federally mandated "premium tax credit" takes effect in 2014 as part of national health-care reform. It would mean $74 million less each year for the government of Guam, which already is trying to cut as much as $72 million a year in spending so it can afford to pay tax refunds and vendors.

Guam mirrors federal tax law, which means changes to national tax policy, including those related to health care reform, must be adopted by the island.

The new tax credit is about 12 percent of GovGuam's projected General Fund revenue for the current fiscal year.

The tax credit is supposed to help individuals and families afford health insurance coverage purchased through an "Affordable Insurance Exchange," according to the Internal Revenue Service website. The tax credit can be paid to taxpayers or directly to their health insurance carriers.

The federal government will provide $75 million a year to be shared among the territories. But any other funding will need to come from the local government. Guam will be liable for any lack of funding to the exchange.

If Guam chooses to not establish a health exchange there is a possibility for a class-action lawsuit such as the one currently being done for income tax credits.
Officials weigh in

Republican Sen. Chris Duenas said because this is a federal mandate the federal government should help pay for it. Duenas said another unfunded mandate isn't needed and the $74 million would hurt GovGuam.

Public Health Director James Gillan shared his concern that the local government can't make the 45 percent match needed for more federal money.

"We have so many unfunded mandates it's incredible we operate at all," Gillan said.