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Fund completes its negotiation for Group Health privatization
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Posted on Nov 14 2005
The NMI Retirement Fund has completed its negotiation with a lone health insurance provider applicant for the privatization of the government’s group heath plan.
The result of the negotiation will, however, remain confidential for about two weeks, or until the government’s Hawaii-based consultant, Karen Bauder, completes her written report.
“We can’t divulge the result yet,” said Fund administrator Karl T. Reyes yesterday.
Bauder’s report, he said, would reveal whether the government would pursue the privatization or not.
The Fund negotiated with Select Care, the only company that submitted a complete proposal for the program.
The Fund began its efforts to privatize the group health insurance since two years ago following advice from the Governor’s Office.
As a result, the Fund board decided to terminate its three-year contract with its third party administrator, Hawaii Pacific Medical Referral, in July 2004. But due to the government’s lack of preparedness, the contract with HPMR got extended on a monthly, and later on a quarterly, basis. In July, the Fund board approved the contract extension of HPMR until the end of this year.
Meantime, the board recently put out a Request for Proposal for a third party administrator. Reyes said yesterday the RFP is open to HPMR.
“HPMR is welcome to re-apply. The RFP is open to everybody,” said Reyes.
HPMR earlier told the Fund that after December this year, it would no longer accept extensions that would last less than a year.
As third party administrator, HPMR negotiates and processes billings issued by healthcare providers to the government.
It said that since its hiring in 2001, it has saved the CNMI government millions of dollars.
