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GHLI’S new 3rd party administrator out this week
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Posted on Mar 27 2006
The NMI Retirement Fund is expected to complete its negotiation with a company to serve as the third party administrator for the Group Health Insurance program this week.
Fund administrator Karl T. Reyes said yesterday that the committee tasked to negotiate with the company would complete it within the month.
“It should be made within the month,” said Reyes.
He said the selection committee, chaired by Fund board member Steven King, is still doing conference calls with the company.
The Fund has asked not to divulge the company’s identity name yet, pending negotiations.
Reyes earlier said that the committee would choose another proposer in case of a failed negotiation.
The Fund received four applicants for the project. They included Hawaii Pacific Medical Referral, Calvo’s Insurance, Aetna, and PharmaCare.
HPMR is currently the third party administrator of the group health insurance program.
If another company is chosen, HPMR would be given a 90-day termination notice as provided in its latest contract with the agency.
HPMR has been working for the Fund since August 2001. Its initial contract had expired in July 2004 amid plans by the government to privatize the program.
When the privatization plan was cancelled last year, the Fund decided to retain the company for another year or until a new contractor is selected.
Meantime, HPMR recently clarified that its latest proposal to the government included a coverage for prescription drugs benefit management services. It said that it would continue with its present setup, which is to keep a subcontractor for this particular area.
Currently, HPMR subcontracts the prescription drugs services to Rx America.
The Fund said Aetna and Pharmacare proposals also covered this service.
The Fund will award two separate contracts for a third party administrator and a prescription drugs benefit management service.
