NMIRF seeks HPMR extension

The NMI Retirement Fund Board has decided to seek an extension in Hawaii Pacific Medical Referral’s contract—possibly up to December this year—due to the lack of a transition program.

This is a turnaround from two months ago when the Fund decided not to renew HPMR’s contract, which expires July 31 this year.

HPMR is the third-party administrator for the health insurance aspect of the Fund’s Group Health and Life Insurance program. The board has initially decided not to renew HPMR’s contract in preparation for the privatization of the program

In an interview yesterday, however, Fund board chairman Joseph Reyes said the board sees it prudent to keep HPMR services so as not to jeopardize the program.

“The contract expires July 31 and no transition plan is in place. We don’t want to jeopardize the program and the subscribers. The subscribers are our biggest concern. The board is looking at the option, probably extending the contract up to December this year,” he said.

He acknowledged that the transition work has not been easy as expected. “So we are very, very mindful of it. It has to be done right.”

The Fund, he said, simply has no time to put everything in order before July 31, considering that it still seeking out proposals to put out a program criteria.

Further, Reyes said that the Fund has to settle important issues such as the inclusion of retirees in the program.

“We want retirees to be part of the package. We can’t leave them behind. So how would new carriers respond to such big and pre-existing conditions? We have to look at it carefully again because of its great its impact on the premium,” he said.

He said the Fund is concerned about its negotiation with providers as to whether it could get the same or better deals than HPMR.

This came even as he noted that health insurance payments to providers are not timely.

He said the Fund wants to know whether discounts would still be available if they are owed by the Department of Public Health.

“We need to be responsible here. Although the question with HPMR has been publicized for some time now, we should make sure the program is not leaving anyone behind.”

The Saipan Tribune tried to obtain comments from HPMR’s offices on Saipan but messages left with them were not returned.

Following a letter from Gov. Juan N. Babauta, the board voted last March not to renew the contract of HPMR.

Babauta, who is pushing for the privatization of the health insurance program, favors the conversion of GHLI to a private, cafeteria-style health insurance program for government employees and retirees.

If this is not possible before July 31, the governor had suggested that the board take over the management of the government health insurance program “with your in-house resources for the relatively short period until the new system is fully operational.”

The governor’s proposal allows subscribers to choose specific health insurance providers that they want.

This would become possible when the government solicits bids from private health insurance providers, in which a group of three or more would be selected.

This came as previous findings by the Attorney General’s Office and the Office of the Public Auditor said that HPMR contract, which was signed in August 2001, did not follow the CNMI Procurement Regulations, putting into question the validity of the contract.

The Fund had also said it found that some clauses that are usually included in standard government contract forms were missing.