NMIRF eyes new premium hike

The Retirement Fund is looking at the possibility of another premium rate increase to salvage the Group Health and Life Insurance Program from deep financial woes.

Fund Board Chair Vicente M. Camacho disclosed that a comprehensive study and review of the premium hike is now underway to justify the needed rate increase and how it can fuel the operation of the government health program.

He said the proposal stemmed from the continued operational expenses and outstanding debts to off- and on-island health providers, and the seeming inability of the Legislature to provide the NMIRF additional fund to finance GHLI operations.

The premium rate increase is only one of the alternatives being considered by the Retirement Fund as measures to seek financial assistance continue, said the board chair.

“We are exploring other options and this is one that we believe is good for us,” added Mr. Camacho.

The NMIRF has sought the assistance of the Legislature to allocate additional funds for the hiring of Hawaii-based review utilization board and to retire outstanding debts to health providers.

Early this year, the NMIRF increased the premium rates of more than 659 retired government employees to generate the additional $2.9 revenues for the group health program. From $13.48 contributions for subscribers of 1993 and $60.30 in 1995, the rate was pegged at $93.03 semi-monthly for high option plan.

The additional revenue expected to generate from the rate increase was seen to pump up the needed financial assistance of the NMI Retirement Fund for the immediate implementation of an off-island review firm.

Because of the new rate implemented on January this year, the GHLI Branch will be able to source out the much needed $1 million revolving fund for the hiring of an off-island utilization review board. It will infuse the needed capital this year with over $2 million additional funds.

The present active employees’ contribution amounts to more than $6.7 million per year. The GHLIP’s operation solely depends on the revenues it generates from the premium collections.

Last year, the NMIRF increased the premium rates by more than 50 percent to cover its operational cost but hundreds of retired employees were not included in the said increase.

In a much effort to source out the funds for the utilization review firm, the Fund also asked the Legislature to allocate over $5 million additional funds to startup the program.

Mr. Camacho said to correct the continued double charging of medical services, medical treatments should be reviewed by an independent firm to ensure that payments are made only to legitimate treatments.

With the assistance of Honolulu-based HMAA, GHLI is expecting to realize a savings of $1.2 million a year. The review firm will also scrutinize all medical billings and negotiate for lower medical rates in various health providers in behalf of the CNMI.

Mr. Camacho said, the branch was able to pay off 1996, 1997, and 1998 debts, but has to catch up with the remaining two years of debt.

In addition, the board chair said, the HMAA will provide GHLI subscribers with a card that will guarantee that members will be provided with medical services in various hospitals in Hawaii. (EGA)