Fund takes back $1.10 premium fee hike

The NMI Retirement Fund has taken back its earlier proposal to impose an additional $1.10 premium fee for members of the Group Health Insurance Program.

In a recently adopted amendment to the GHI program rules and regulations, acting board chair Oscar C. Camacho said the published amended rules in the Commonwealth Registrar on Aug. 24, 2006, are true and correct “with the exception of the proposed increase of an additional $1.10 of premium contributions paid by employees…”

In an interview yesterday, Fund administrator Mark Aguon said it was just “a miscommunication” when they put out the proposed rules and regulations a couple of months ago.

“Some people thought it was an additional $1.10 but the whole idea was an additional fee to the third party administrator will be taken out from the total fee and not an additional fee that has to be paid out by the participant. The premium does not increase. A portion of the premium that gets recompensed to Aetna increased by $1.10 but the members will not pay an additional fee,” said Aguon.

He said the Fund decided to pay Aeta Global, its third party administrator, an additional pay of $1.10 for accepting an additional work—handling pharmaceuticals.

The Fund initially planned to award the prescription drugs management to another contractor, Pharmacare, but their negotiations had failed.

Aguon described its package with Aetna as “a very good deal.”

Earlier this year, the GHI program raised its premium rate by up to 52 percent in view of the change in TPA.

Aetna Global signed a three-year contract with the Fund as its third party administrator effective July 1 this year, replacing Hawaii Pacific Medical Referral, which had handled the program for four years.

As amended effective July 1, 2006, GHI member contribution rates would increase to $56.44 semi-monthly for single retiree and $52.55 biweekly for single active member.

Including the government’s contribution, total premium for a single retiree is $71.10 and $61.10 for active single.

For couples, a retiree’s semimonthly is increased $104.57 while an active’s biweekly is $91.59.

Total premiums for couple amount to $131.10 for retirees and $116.10 for active members.

Family enrollees would pay $140.61 for retirees and $134.50 for active members.

Total family premiums amount to $191.10 for retirees and $181.10 for active members.