CONGRESS OF THE UNITED STATES
HOUSE OF REPRESENTATIVES
PUERTO RICO RESIDENT COMMISSIONER
LUIS G. FORTUÑO

SAN JUAN, P.R. – The U.S. Department of Health and Human Services (HHS) disclosed mismanagement of Ryan White federal funds destined to HIV/AIDS patients by the Commonwealth Government in a report made public today by the Resident Commissioner, Luis Fortuño. The report by HHS’s Inspector General recommends the return by the Commonwealth Government of $24 million in Ryan White funds and concluded that the Commonwealth Government does not have systems in place to ensure that recipients comply with the program’s eligibility requirements.

“For some time I have been expressing concern and dismay as to the irresponsibility of this administration with respect to HIV/AIDS patients in Puerto Rico, many of whom are homeless; today’s report confirms my previous expressions on the matter,” said the Resident Commissioner. According to the 28-page report, the Commonwealth Government must reimburse the federal government over $24 million in overcharges made between 2002 and 2004, while Sila María Calderón was governor and Aníbal Acevedo Vilá was the resident commissioner in Washington.

“The negligence and ineptitude in managing these funds during the last eight years has put at risk the health and quality of life of HIV/AIDS patients in Puerto Rico, many of whom depend on Ryan White funds for much needed medicines and services,” said Fortuño. After an exhaustive investigation, HHS’s Inspector General determined that the Government of Puerto Rico overcharged the federal government $24 million in medicines not eligible for coverage under the Ryan White program.

Under Title II of the Ryan White program, Puerto Rico receives an annual grant to fund the purchase of life-extending medicines for HIV/AIDS patients who lack health insurance or who are underinsured. The law states clearly that these funds cannot be used to buy medicines for patients that have private or public health insurance, such as Medicaid, that cover these drugs.  This is known as the “payer of last resort” requirement.

“The Commonwealth Government was not only negligent in managing these funds, but when the federal government gave the Acevedo Vilá administration the opportunity to explain how it was planning to correct the situation, the federal government did not receive an answer,” the Resident Commissioner observed.  Fortuño explained that, as indicated in the report, the current government did not address the Inspector General’s recommendations when the Inspector General provided the current government a draft of the report and allowed for comments.

On various earlier occasions, Fortuño has denounced the Commonwealth Government and Acevedo Vilá’s administration for its mismanagement of federal funds that the Island receives, especially under the Ryan White program. In May of this year, the Resident Commissioner sent a letter to the Secretary of HHS, Michael O. Leavitt, describing the magnitude of the problem as it pertained to Ryan White funds: “Despite the significant federal funding allocated to Puerto Rico, too many of my constituents living with HIV/AIDS find it terribly difficult to obtain – and, in some cases, cannot obtain at all – the services they need to stay healthy and enjoy life. This state of affairs is the direct result of chronic mismanagement of federal funds on the part of the government of Puerto Rico.” In February, Fortuño introduced legislation, co-sponsored by Congressman José Serrano, that would empower HHS to directly administer federal grants if HHS determines that a state or territory “substantially failed” to make appropriate use of previous federal grants. This legislation aims to ensure that Ryan White funds actually reach those who need it:  HIV/AIDS patients on the Island.

In his report, the Inspector General recommends that the Commonwealth Government develop procedures to bill HIV/AIDS drugs to the Federal, State, or private health insurance plans with primary payment responsibility.
 

(####)