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Torres hopes legislature provides money to pay debt
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Posted on Oct 12 2000
Northern Mariana Islands Retirement Fund Administrator Juan S. Torres yesterday expressed hopes that the legislature will be able to provide funding to wipe out the debt of the government health insurance and hire a company that will eventually takeover its management.
Mr. Torres said the Fund does not have any money to pay the $5 million debt of the government health insurance. The Fund also needs about $1 million to hire the Hawaii Management Alliance Association which has been approved in principle by the board.
HMAA will not only provide utilization review services but also ensure that the members of the government health insurance gets 20 to 50 percent discount in different hospitals. The company has in-house doctor to analyze the billings and a pharmaceutical benefits manager who will keep track of the charges for medicine.
Board Chair Vicente Camacho said the hiring of HMAA will result in $1 million savings to the Fund.
Mr. Camacho is relying on the pledge of legislators that they will try to borrow money from the Marianas Public Land Trust to wipe out the debt of the government health insurance and hire HMAA.
The legislature’s assistance is also dependent on the hiring of the company that will provide review utilization services to prevent similar problems of questionable billings.
Operation of the Government Health, Life Insurance was turned over to NMIRF in June 1996 without providing any funding which left the Fund without any choice but to settle its liabilities.
Documents submitted to the House Committee on Health and Welfare showed that of the $5 million debt, the Fund has only processed claims amounting to $1,794.243.
Rep. Malua Peter, Chair of the Committee has asked the Office of Management and Budget to identify some funds that can be earmarked by the Legislature for payment to these health providers.
She said the schedule of payments can only be made until such time the funds are identified. However, she has expressed concern on the possibility that off-island members of the government health insurance may be turned away by the hospitals in Hawaii in cases of emergency because the Fund has not settled its obligation. (LFR)
