Puerto Rico News: Budget Affects Thousands of Puerto Ricans Needing Medicine As Government Shutdown Looms
The financial crisis in Puerto Rico continues to wreak havoc upon the island's various public services, targeting now the most vulnerable.
Thousands who need medicine in the island are being affected because the government cannot pay insurance companies.
In an interview with EFE, opposition New Progressive Party (PNP) leader Jose Aponte said the government's financial problems had led to at least 5,000 Puerto Ricans not receiving needed medications. The problem is the government does not have enough funds to give money to the state-owned insurer ASES, which runs Mi Salud, Puerto Rico's version of Medicaid.
"The government doesn't pay its providers on time," Aponte said. He explained the insurance companies, because they have not been paid, refuse to pay pharmacies to provide medicine for those in need.
As the island's financial crisis continues, which includes a public debt of around $73 billion, the Government Development Bank, the government's financial institution, has cut back ASES funding. However, the insurance agency still owns around $39 million to private insurers only for medicine.
Although Gov. Alejandro Garcia Padilla has said his administration is dealing with this problem, the impending government shutdown could further destabilize or completely end government-funded services.
The government's finance officials, including members of the Government Development Bank, published an open letter addressed to Gov. Garcia Padilla and lawmakers explaining within three months Puerto Rico could face a government shutdown, according to Reuters.
"A government shutdown is very probable in the next three months due to the absence of liquidity to operate," the officials wrote. "The likelihood of completing a market transaction to finance the government's operations and keep the government open is currently remote."
The government's negotiations to save Puerto Rico's finances were not likely to succeed. As a result, the officials warned lay-offs as well as reductions in public services were expected.
If that were to happen, the crisis's aftermath would affect more than just the people not receiving medication.
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