NMIRF taps private firm to study new GHLI rates

The Northern Mariana Islands Retirement Fund will hire an accounting firm to conduct an actuarial study on the effect of new premium rate being paid by the retirees to the government health and life insurance.

Vicente Camacho, Board Chair of the NMIRF, said the firm will also assess the effect of the planned transfer of retirees 65 years old and above who are currently GHLI members to the Medicare Program.

A year after the increased premium contribution of its more than 5,000 members implemented last Jan. 1, 2000, the CNMI Group Health Insurance Program adjusted the rate to cover the retirees so as to cope with the skyrocketing cost of medical expenses.

This developed as the Fund hired a utilization reviewer to assist the private accounting firm hired to examine the $5 million debt of GHLI to different off-island health providers.

Mr. Camacho said the utilization reviewer and the accountant will look into the accounts since January 1996 to give NMIRF a clear picture on how much exactly the health insurance must pay to the private health providers.

In addition, the Fund also wants to find out the real amount which the health insurance owes to the Commonwealth Health Center. GHLI’s debt to the hospital is estimated at $10 million but the Fund believes that the amount should be lower because the health insurance will only cover the expenses based on the insurance policy of its members.

Currently, off-island health providers have been turning away members of the government health insurance who are seeking medical treatment unless they can pay in cash.

The legal counsel of the Fund has warned the Board of Trustees that they can be sued if anything happens to any of its member who does not get immediate medical attention. NMIRF has asked the government health insurance members to pay for their medical expenses first to be reimbursed later by the Fund.

The Fund has asked the Legislature’s assistance for funding to pay off the government health insurance’s debt but nothing has been done to resolve the problem.

NMIRF Board has approved the hiring of Hawaii Management Alliance Association to provide review utilization services and eventually handle the functions of the government health insurance. (LFR)