# What This Bill Does

This bill changes how U.S. territories like Puerto Rico and the U.S. Virgin Islands can use federal money to help low-income seniors pay for prescription drugs. Right now, when these territories receive special federal funding to cover prescription medications for Medicare beneficiaries who can't afford them, they have to contribute their own money to match the federal dollars. This bill removes that matching requirement, meaning the federal government would cover 100 percent of the cost instead of asking territories to chip in their share.

The practical effect is straightforward: territories would get more help from the federal government without having to spend their own limited budgets. For low-income seniors living in these territories, it means the federal government would fully fund their prescription drug assistance programs rather than splitting the cost with the territory's government. This is particularly significant because U.S. territories generally have fewer resources than states and often struggle with higher poverty rates and healthcare costs.

The bill specifically targets Medicare Part D drugs, which are prescription medications covered under the standard Medicare program. By removing the matching requirement, the bill essentially treats territories the same way the federal government treats certain other healthcare programs—by covering the full cost rather than requiring a local contribution. The change would take effect retroactively to October 1, 2020, meaning territories could potentially recoup some costs from that date forward if the bill passes.

To amend title XIX of the Social Security Act to remove the matching requirement for a territory to use specially allocated Federal funds for Medicare covered part D drugs for low-income individuals.

González-Colón, Jenniffer

 <p>This bill establishes a&nbsp;Federal Medical Assistance Percentage (i.e., federal matching rate) of 100% with respect to a U.S. territory's&nbsp;use of specified federal funds to&nbsp;provide covered drugs to low-income individuals who are eligible for the Medicare prescription drug benefit.</p>