NMIRF wants 30 percent of tobacco money for GHLIP

As the Legislature moves to identify how the funds received by the CNMI under the tobacco master settlement agreement must be spent, the Retirement Fund yesterday asked the Senate to set aside 30 percent of the total amount for use by the government’s Group Health & Life Insurance program.

In a letter to Senate President Paul Manglona, NMIRF Board Chair Vicente C. Camacho said medical expenses for the treatment of tobacco related diseases of the members have contributed to the depletion of the GHLI funds.

He warned the Legislature that failure to ignore such requests will result in continued premium increases. “Ultimately, if assistance is nowhere in sight and a government agency can declare bankruptcy, we will not hesitate to take that route,” Mr. Camacho added.

The House of Representatives passed recently a measure to ensure appropriation of the $30 million share of the Commonwealth in the $206 billion settlement reached by the U.S. states and territories with tobacco companies.

Sponsored by Health and Welfare Committee Chair Rep. Malua T. Peter, HB 12-290 will create a special account for the future payments under the settlement agreement to ensure that the money will be used to finance programs such as smoking prevention and treament of sick smokers.

While members pay a premium to be covered in the event they get sick, the use of tobacco has undeniably contributed to the decline of their health, he said.

Mr. Camacho said the GHLI program is entitled to such funds since the Legislature did not provide any funding when the enabling legislation which created the government’s insurance program came into effect.

“With the uncertainty in future direct funding from the Legislature, the negotiations we have with the firm in Hawaii that will takeover a major bulk of the GHLI program functions will be jeopardized,” he added.

The NMIRF Board has already approved the hiring of Hawaii Management Alliance Association (HMAA) to provide utilization review services and handle a major bulk of the functions of the government health insurance.

Aside from having a $1 million savings to the Fund, the Honolulu-based company will get at least 20 to 50 percent discount, depending on which hospital the members will be going.

The company has in-house doctors who will analyze the billing and a pharmaceutical benefits manager who keeps track on whether the charges for medicine are too high.

Mr. Camacho said identifying funds that are guaranteed will help maintain a financially sound contract with HMAA. Even the Office of the Public Auditor has already recommended the need to contract out specialized areas of the GHLI function which was a major requirement set by the Health Education Welfare Committee before providing financial assistance to the government health program.

The CNMI has received more than $800,000 since December 1999 which were mingled with the general funds to cut deficit of the government.