Health insurance contract missed July 31 deadline | Guam News


As the discussion of a budget for the next fiscal year begins, there is little information about the government’s health insurance contract, which last year was estimated at around $ 109 million to the government.

The final cost depends on the level of coverage chosen by the Government of Guam for employees and retirees.

“An announcement will be made soon,” Department of Administration director Edward Birn responded to questions about the status of GovGuam’s health insurance contract.

Adelup did not respond to questions about whether the governor had received any recommendations.

“This is to inform you that the bargaining team is in the process of concluding its final recommendations to the governor. We expect a final recommendation by the end of the week or early next week. final approval will be given by the governor, ”Birn said in a letter to President Tina Muña Barnes on July 30. “In light of this timeline, in accordance with 4GCA Chapter 4 paragraph 4302 (c) (9), the negotiating team will not be able to meet the July 31 deadline informing I Liheslaturan Guahan of the accepted proposal for the purposes of the budget for fiscal year 21. “

Birn, as director of the DOA, is a member of the health insurance negotiating team. Other members include representatives from the Legislative Assembly and members of the Adelup tax team.

The current contract is with Aetna International and expires at the end of the fiscal year. Aetna’s contract was valued at around $ 108.9 million, about $ 10 million more than the contract cost of the previous year, according to Guam Daily Post records.

The $ 109 million price tag included premiums payable by people who subscribe to Aetna’s health plans, as well as GovGuam’s much larger premium contribution, which is borne by all taxpayers in Guam.

In fiscal 2017, it cost taxpayers $ 76.3 million to provide health insurance for Guam government employees, retirees and their dependents. This represented 79% of the total cost of the plan that year, according to the audit.

Based on this percentage, the taxpayer’s share of the $ 109 million Aetna contract could rise to over $ 85 million.


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