Guam lawmakers support Medicaid tax breaks for providers

Lawmakers in Guam are considering two bills, Bill 118-38 and Bill 93-38, aimed at increasing access to healthcare for Medicaid patients by offering tax breaks to healthcare providers. Supporters, including doctors and government officials, argue that low Medicaid reimbursement rates and administrative challenges discourage many clinics from accepting Medicaid, resulting in limited access for over 40,000 residents reliant on the program. Bill 118-38 proposes a tiered business privilege tax reduction for providers based on the number of Medicaid professionals and locations served, while Bill 93-38 would offer a 100% rebate of business privilege taxes paid on Medicaid income. Testimony highlighted stories of patients struggling to find care, especially for prenatal services, due to provider shortages. While health officials believe these incentives could help address the issue, some senators expressed concern that the tax breaks might divert funds from the hospital and other public services. Overall, the proposed legislation seeks to strike a balance between incentivizing providers and maintaining critical government funding.