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‘HPMR reduced rates for members’
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Posted on Dec 05 2005
The NMI Retirement Fund said it would be able to save on its monthly payments to Hawaii Pacific Medical Referral following the company’s decision to reduce its rates per member.
Fund administrator Karl T. Reyes said HPMR reduced its rate from $9.50 each member to $8.75.
There are 10,000 registered members in the Fund’s group health insurance program.
“It would be down to $87,000 a month,” said Reyes.
He said HPMR made the reduction during a recent negotiation for its contract extension.
The Fund has agreed to extend HPMR’s Dec. 31 contract for up to 12 months in view of the government’s failure to privatize the health insurance program this year.
HPMR has been providing services to the Fund as a third party administrator since 2001.
During its first three years of service, it said that it saved the government some $8 million.
Meantime, the Fund said that the new extension agreement with HPMR would call for a 90-day termination clause.
This developed as the Fund is set to re-issue a Request For Proposal for a third party administrator.
It means that the Fund has to choose a new TPA 90 days prior to the end of HPMR’s revised contract.
When the RFP was issued last month, the Fund received no proposals.
Reyes said the Fund expects to receive proposals this time because the RFP would be advertised in Hawaii and other places.
