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NMIRF seeks to double gov’t insurance premium
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Posted on Mar 24 1999
Government finance officials are finding ways to raise approximately $400,000 in additional funds to cover expenses for the planned increase in government health insurance premiums, according to Gov. Pedro P. Tenorio.
Yesterday the governor met with his finance advisers and Northern Mariana Islands Retirement Fund Board chairman Vicente C. Camacho to discuss a proposal seeking to double the present health insurance plan rates.
The NMIRF has put forward the proposal to ensure that it has sufficient funds to pay claims. A periodic actuarial assessment underscores the need to adjust upward the enrollment rates because of increasing medical costs.
During the first half of the year, actual claims reached $3.2 million to outpace premium payments by almost $1 million. The NMIRF is worried that if the trend continues, it would deplete the agency’s resources and unable it meet its obligation to members.
“We have to look at the possibility of increasing the government insurance. There was a study made that says that we need to increase the premium because medical costs now are very expensive,” Tenorio said in an interview.
Tenorio said it would cost the government between $400,000 and $450,000 in additional annual expenditure if the plan pushes through. Every year, the Commonwealth spends a little over $100,000, or 20 percent, to pay portion of the health insurance coverage for its employees.
The NMIRF, which administers the CNMI Group Health and Life Insurance Plans, says even if the rates were adjusted the amount would still be lower compared to healthcare plans offered by private insurance companies.
Under the present GHLIP plan, a government worker’s biweekly contribution amounts to $57.25 for self and family high option, while for a self only high option is $21.86. Biweekly premium rate for self only option is $13.75 and self and family option is $8.40.
Doubling the enrollment rate is still far lower than the $400 charged by some private companies per month for health insurance plans.
According to the governor, another meeting has been set for next week to further discuss the proposal.
