Washington, D.C. -- U.S. Representative Neil Abercrombie today convinced the House Energy and Commerce Committee to add federal funding for the cost of health care for compact migrants to America's Affordable Health Choices Act of 2009, the House plan for national healthcare reform.  Abercrombie’s amendment would make compact migrants from Micronesia, the Marshall Islands and Palau fully eligible for Medicaid benefits, which means the State of Hawaii will be reimbursed by the federal government $15 million per year, about half the annual cost. 

The Government of the United States entered into a Compact of Free Association with the Republic of the Marshall Islands (RMI) and the Federated States of Micronesia (FSM) in 1986 and with the Republic of Palau in 1994.  Under the compact, their residents could enter the U.S. and receive full education, health and law enforcement services.  When the agreements were initially executed, the federal government recognized that there would be a significant cost for services for any location to which the compact migrants moved, and Congress appropriated funds to offset these costs. 

“However, in 1996, the government walked away and left the states to pick up the tab,” said Abercrombie.  “Hawaii has spent more than $100 million every year on services to the 12 thousand compact migrants. Today’s amendment means the Hawaii taxpayer won’t get stuck with the whole bill any longer.”

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