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Fund rejects one, left with one provider
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Posted on Apr 09 2005
The NMI Retirement Fund said that it has rejected one health insurance proposal, leaving it with only one provider to offer “a cafeteria-style” program.
Fund administrator Karl Reyes said Thursday that one of the only two companies that submitted proposals to provide health insurance coverage for government retirees and employees was turned down after a review.
Right now, he said the Fund is left with Select Care.
Reyes said there is no decision yet whether the Fund would issue another RFP to invite other players. He said the Fund board may decide on the matter during its meeting later this month.
“We would know then if we’re going to issue out another RFP,” said Reyes.
In the meantime, he said the Fund is giving Select Care an opportunity “to show what they can do.”
He conceded that the goal of having a cafeteria-style program would not happen if there is only one available provider.
The Fund had wanted to award contracts to at least three heath insurance providers to offer members a variety of insurance packages. This is in line with the government’s plan to fully privatize its Group Health and Life Insurance Program.
Right now, only its life insurance program is privatized.
The health program is run by the Fund through a third party administrator, Hawaii Pacific Medical Referral.
The Fund has been working for over a year now for the privatization of the health program component. The Fund said it hopes to finally make the transition by July this year.
The Governor’s Office is paying a Hawaii-based health insurance consultant, Karen Bauder, to help with the privatization program.
Bauder is reportedly paid by the hour or a total of some $90,000 a year.
