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Medical account for gov’t workers eyed
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Posted on Apr 25 2001
The Legislature is eyeing the installation of a measure that would give government employees flexible spending healthcare accounts to meet their and their dependents’ medical needs.
Rep. William S. Torres recently introduced the CNMI Public Employee Medical Care Savings Act of 2001 which should allow health care expenses that are not included in the standard CNMI plan to qualify as pre-tax contribution.
Mr. Torres pointed out that by establishing the medical savings account, the CNMI government can provide civil service workers a high deductible health plan which are not compensated for by an insurance.
Under the proposal, an employee shall purchase a high-deductible health plan that provides basic benefits, extended basic benefits, and major medical expense benefits for covered health care services.
The bill also stipulated that an employer shall make a payment on behalf of the personnel where unused accounts can be remitted to medical savings account.
Mr. Torres explained that employees covered by the said medical savings account should submit complete documents of qualified medical expenses to prevent possible problems in the future.
Medical expenses incurred by the employee shall be reimbursed and withdrawn from the established medical savings account.
“Upon the death of the employee, balance of the medical savings account shall be distributed to the estate of the employee, unless a beneficiary has been identified earlier on,” said the legislator.
The proposal is consistent with the Internal Revenue Code Section 125 or successor legislation, and any regulations promulgated that allows for flexible spending accounts on health care on a pre-tax basis, said Mr. Torres.
Although stricter austerity measures are encouraged among government offices, Gov. Pedro P. Tenorio has repeatedly assured that his administration is not sacrificing essential public services despite deeper cuts in budget allocation.
Public health officials are coordinating with private medical providers for possible partnership aimed at improving the provision of better health and medical services at a reduced cost for the government. (EGA)
