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HPMR, Fund sign one-year contract
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Posted on Dec 18 2005
The NMI Retirement Fund and Hawaii Pacific Medical Referral have formally signed a contract extending the latter’s service for one year as the government’s third party administrator for health group plan.
Fund administrator Karl T. Reyes said Friday that the one-year extension contract provides that either party has an option to cancel the contract within a 90-day notice.
The HPMR’s previously signed extension contract is set to expire on Dec. 31.
HPMR, whose original three-year contract expired in July 2004, recently reduced its rate, the Fund said.
Reyes said HPMR lowered its rate from $9.50 each member to $8.75.
There are 10,000 registered members in the Fund’s group health insurance program.
Meantime, Reyes said that HPMR has expressed interest to submit a proposal for a new three-year contract with the Fund.
“They requested that they be given of the details about the RFP,” said Reyes.
The Fund issued this month a new Request for Proposal for a third-party administrator in view of its recent decision to reject the privatization plan for the group health program due to high costs.
HPMR earlier said that it had saved the CNMI government some $8 million during its initial three-year contract.
These savings are obtained through HPMR discounts with health providers, cancellation of invalid claims, and negotiations for reduced rates.
