Insurance premium hike means more cost-cutting, revenue-generating bills

Gov. Eloy S. Inos cancelled on Friday a request for proposals for a government health insurance program and a new one may be issued soon, even as retirees, public servants and the government itself brace for a 40-percent increase in health insurance premium under an up to 60-day contract extension with current provider Aetna International.

The governor, at the same time, issued an RFP last week for a group life insurance coverage.

The additional millions of dollars that the government may have to pay as a result of a 40-percent hike in health insurance premiums will mean more cost-cutting measures and revenue-generating bills, lawmakers said yesterday.

“Locally-funded travel will have to be cut by 50 percent. Giving the Department of Finance more authority to enforce the Sales Receipts Act will generate additional revenues that can be used to pay for the increased health insurance premiums,” Rep. Christopher Leon Guerrero (Cov-Saipan) told Saipan Tribune yesterday.

Rep. Lorenzo Deleon Guerrero Guerrero (Ind-Saipan), however, said the administration should not resort to work hour cuts again “because there are still other areas where we can cut like not giving salary increases, stop more hiring especially on an election year [2014].”

“The 40-percent premium increase is mainly a result of Obamacare. That’s another example of the U.S. government unilaterally imposing on the CNMI. We are treated as a state when we shouldn’t be treated as one,” he added.

The governor earlier spoke of a 30-day contract extension with Aetna. Without this contract extension, more than 2,000 individuals would be left without health insurance until the government signs a new agreement with another firm.

As of Thursday last week, the governor said StayWell already “withdrew,” while Calvo’s SelectCare was “still in the running” related to an RFP issued in November. But the governor said it’s likely that the RFP will be cancelled and a new one will be issued. A day later, the RFP was cancelled.

The government determined that the submissions received were not in the CNMI’s best interest.

One estimate for healthcare benefits received, for example, would increase premiums by 43 percent, which would increase total annual costs from approximately $18 million to $25 million.

House minority leader George Camacho (R-Saipan) said yesterday that the CNMI needs to continue seeking new revenue, promote tourism, support small businesses and streamline the government.

“I know these are not overnight solutions. However, every help we can get goes a long way. It’s not rocket science. Everyone just needs to pitch in and be on the same page,” Camacho added.