Group Health privatization still uncertain

The privatization of the government’s group health insurance program remains uncertain this year amidst unresolved points of discussion between parties.

Fund administrator Karl T. Reyes said yesterday that government consultant Karen Bauder would advise the NMI Retirement Fund board of trustees in November this year “whether to privatize or not.”

He said the health insurance program will “mostly likely be privatized” but “there is a possibility it may not.”

He said that if the current proposer, Select Care, agrees to the consultant’s conditions, privatization would go on.

“Again, we’d know it by November,” said Reyes, adding that it takes a considerable time to come up with a final agreement due to major concerns, especially on costs and types of services.

The Fund official earlier said that the agency extended the Request for Proposal to allow both parties to resume discussions on the matter in November.

Bauder, who also serves as the Guam government’ healthcare insurance consultant, is currently tied up with Guam matters.

In the meantime, the CNMI government extended up to Dec. 31 this year its contract with third party administrator for group health insurance, Hawaii Pacific Medical Referral.

Reyes said that HPMR will continue to provide services until a new health insurance company is chosen to handle the entire program.

The Fund has been extending HPMR’s contract for over a year now.

HPMR’s three year contract with the Fund originally expired in July 2004.