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Fund begins evaluation of RFP on group health insurance
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Posted on Feb 08 2006
The NMI Retirement Fund has formed a committee to open and evaluate the four proposals for the administration of its health insurance program.
The committee, chaired by Fund board member Steven King, held its first meeting yesterday afternoon, said Fund administrator Karl T. Reyes.
“The procedures task the committee to open up the proposals,” said Reyes.
Another group will be formed to evaluate and negotiate with the top two proposers. This committee will include a member from the Department of Public Health.
Reyes said the four companies that submitted proposal to the Fund are Hawaii Pacific Medical Referral, Calvo’s Insurance/Select Care, Aetna, and U.S.-based PharmaCare.
HPMR is currently the third party administrator for the Fund’s group health insurance program. Its contract with the Fund initially provided for a three-year service beginning August 2001 to July 2004. This was extended for another year pending the government’s evaluation of its earlier plan to privatize the program.
When the privatization plan was rejected late last year, the government opted to sign another one-year contract with the company, subject to a 90-day termination notice.
Reyes said it was Calvo’s, which previously represented Select Care on the privatization proposal, that responded to the Fund’s request for a third party administrator.
The local government had turned down Select Care’s privatization proposal last year following findings that it would result in higher costs.
Aetna and PharmaCare are both new proposers.
The Fund issued last month an RFP for a three-year service contract with a third party administrator.
