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New rates allow NMIRF to cover health claims
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Posted on Feb 03 2000
As a result of the 50 percent increase in the member’s contribution to the CNMI Group Health Insurance Program, the NMI Retirement Fund is now able to cover all health claims, although the government’s contribution has remained the same, according to NMI Retirement Fund Administrator Juan S. Torres.
Total projected revenue of the CNMI’s Group Health & Life Insurance Trust Fund for FY 2001 amounts to $10.22 million based on the premium payment of some 5,932 active retirees.
However, the Fund is still keeping a close watch of its current members who may transfer to other health providers since other companies are offering equally competitive rates and attractive benefits to its clients.
The Fund was forced to increase its member’s contribution last month due to skyrocketing cost of medical expenses. It was the second time that Fund’s group health insurance program increased while private health insurance providers have been carrying out adjustments every year.
Mr. Torres said the Fund did not ask the government to adjust its rate because of the declining revenue primarily due to the slowdown in the island’s economy. The increase in deduction of premium contributions took effect in the Jan. 2, 2000 pay period.
The new bi-weekly contribution rates for High Option Category – Self Only (201) is $32.79; Self & Family (202) $85.88 and Low Option – Self Only is $20.63, Self & Family (205) is $49.65.
Before the rate increase was adopted by the board, the proposed amendment was published in the Commonwealth Register last Aug. 23, 1999. During that period, no objections were received on the planned rate adjustment.
