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No takers for privatized health insurance program
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Posted on Feb 01 2005
No private health provider submitted a proposal to participate in the NMI Retirement Fund’s health insurance program as of yesterday—the deadline for the submission of proposals to privatize the government’s health insurance program.
“We didn’t receive a single proposal. It’s sad,” said Fund administrator Karl T. Reyes in an interview yesterday morning. “But we’ll check with Procurement and Supply by 4:30 this afternoon.”
The Fund, through its Hawaii-based consultant, finished and issued last December the Request for Proposal for the privatization of its health insurance program.
The Fund aims to award contracts to at least three providers to give members a choice of their preferred health insurance provider.
Reyes said yesterday that StayWell, for one, has relayed a message that it is not interested in the program “because it’s too expensive.”
“That’s a common feedback. The health insurance program is really expensive,” said Reyes.
He said the privatization committee, composed of representatives from the Fund, Governor’s Office, Department of Public Health, and Procurement and Supply, has yet to meet to plan its next action.
“I can’t tell yet if we’re going to extend the RFP. We have yet to meet,” said Reyes.
The Fund said privatization can hopefully take place upon the termination of the Fund’s extended contract with its current health insurance third party administrator, Hawaii Pacific Medical Referral.
The Fund board had decided not to renew HPMR’s contract, which expired last July, in anticipation of the full privatization of GHLI in 2004. The Fund, however, decided to extend HPMR’s contract up to December 2004 to give more time to iron out the privatization plan. The contract was later extended to February 2005 and then to June 2005.
The Babauta administration favors the full privatization of the Fund’s Group Health and Life Insurance Program. Right now, only the Fund’s life insurance component is privatized.
The administration wants a private, cafeteria-style health insurance program to allow government employees and retirees a choice of their providers.
The Fund has about 8,000 members.
