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Torres weighs in on Fund’s TPA contracts
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Posted on Apr 06 2006
A lawmaker demanded the NMI Retirement Fund Wednesday to disclose the terms of its new contracts for medical and drug prescription services.
Citing the Open Government Act, Rep. Stanley T. Torres asked the Fund to provide him with copies of the proposals submitted by Aetna and Pharmacare, as well as any contracts that the Fund signed with them.
Torres also requested information on any fee and rate structures proposed or being approved, and any proposed contingency plan if negotiations between the Fund break down with both Aetna and Pharmacare.
He also asked for the names of all members of the Fund’s Government Group Health and Life Insurance selection committee for third-party administrators.
Torres’ request followed the Fund’s decision to terminate its contract with Hawaii Pacific Medical Referral, which has been handling both medical and prescription drug services under the government’s group health program.
HPMR’s contract will expire June 30, 2006.
The retirement agency intends to hire Aetna as third party administrator for medical services and Pharmacare for prescription services for a term of three years.
Reports showed that the new rates for the services have yet to be finalized.
But proposed figures reportedly range between $24 and $33 per Group Health Insurance member (or government employee), a significant increase from the current monthly rate of $8.75.
Torres protested the expected increase.
“[T]his doesn’t even mention or include the monthly fees that Pharmacare will add to the burden of our government employees, who will inevitably have to shoulder the cost of NMIRF Selection Committee’s decision to terminate HPMR without apparently even securing the new monthly fees and rates,” Torres said.
