Last Updated on Wednesday, 10 October 2012 18:33 Written by Clynt Ridgell Wednesday, 10 October 2012 16:14
Guam News - Guam News
Guam - The Calvo Administration has received a report from the Hay Group that they say proves that Bill 513,? the GovGuam health insurance procurement bill, won't result in lower costs to GovGuam employees.
The Department of Administration asked for an independent actuary from the Hay group to look into the effects of bill 513. The measure would change the way that health insurance is procured. Senator Ben Pangelinan has said that it was introduced because of the numerous procurement protests against the current contract held by Calvo's Selectcare. Instead of awarding the contract to one company Bill 513 would allow for multiple companies to provide health insurance to GovGuam employees as long as the companies are pre-qualified. The idea is to prevent procurement protests spark competition and keep the cost of healthcare down.
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?However, the governor's director of communications Troy Torres says that according to the hay group it won't keep costs down. "Because the legislature's been saying the majority's been saying that this bill will keep costs down but the information that we have from the independent actuary is saying that's not possible it's completely unrealistic and the cost for retirees especially and for active employees will go up if because of this bill if this bill is implemented,? said Torres.
?Torres adds that the measure is under review by Lt. Governor Ray Tenorio rather than Governor Eddie Calvo in order to alleviate any conflict of interest. The current health insurance provider for GovGuam is Calvo's Selectcare. Torres says that the deadline to take action on the measure is this Friday. Although no decision has been made yet it appears as if the administration is leaning towards vetoing the bill. "DOA has previously sent in testimony opposed to the bill for a number of reasons including the circumvention of the procurement process including pointing out that a previous actuary has said that this sort of process won't work,? said Torres.
?There are other concerns that the administration has for example the opinion put out by the Attorney General's office. The A.G.'s office sent a letter to the legislature saying that "The legal ramifications if the government of Guam tried to implement the provisions of bill 513 while there is a pending procurement appeal and stay are uncertain at this time." They also note that the federal HIPPA law required the extension of health coverage under Calvo's Selectcare while the contract is under protest. If the protests are resolved and if a new contract is awarded this health coverage can't be terminated without 60 days notice. The A.G.'s opinion also says that if there were no ongoing protests the bill "could be implemented subject to the 60 day termination clause of the extension agreements."
?However, the A.G.'s concerns probably aren't the biggest concern for the administration. "I think what will concern the Lt. governor the most is the increase in cost for retirees and active employees,? said Torres.
?During the public hearing for the bill Netcare, Staywell, and Takecare all testified in favor of the measure because they felt it allowed for fair competition and because they felt the current procurement process is flawed. Only Calvo's Selectcare testified in opposition to the measure.
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