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Aetna postpones contract’s renewal to January
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Posted on Nov 03 2011
By Moneth Deposa
Reporter
Reporter
Health insurance carrier Aetna Global has agreed to postpone the renewal date of its contract by two months while it waits for the Fitial administration to decide on its proposal to raise premium rates under a new contract.
Retirement Fund administrator Richard Villagomez said yesterday that the postponement means that coverage and premiums for all retirees and members will remain intact.
Aetna’s contract, renewed every year, was up for renewal on Tuesday, Nov. 1.
At a recent Fund board meeting, Villagomez said that the Fitial administration has yet to decide on the company’s new proposed premium rates.
The insurance carrier had presented the government two options, both of which would increase the amount of premiums that will be paid by members. The specifics of these options were not made public.
“While we sort this out, Aetna has agreed to postpone the implementation date of the renewal terms from Nov. 1, 2011, to Jan. 1, 2012. Coverage and premiums will remain intact and the same until Jan. 1, 2012,” Villagomez said in an email yesterday, adding that he cannot divulge specifics of the proposal until the administration selects a renewal option.
According to Villagomez, most members have reported being “very satisfied” with the health insurance coverage provided by Aetna.
The Group Health and Life Insurance Program, or GHLIP, is a government program and is only administered by the Fund. Any final decision on the contract with Aetna lies with the Executive Branch.
Villagomez also disclosed that the applicability of the federal Health Care Reform Act to the CNMI plan is being re-assessed at the request of some lawmakers and the Fitial administration. “If applicable, the coverage mandated by the Act is nice but is not free. It will increase premiums that we all have to pay for-active employees, retirees, and the CNMI government,” he said.
Since the Fund pays 50 percent of premium contributions for GHLI, board chair Sixto Igisomar said that the options presented by Aetna would also mean a substantially increased burden for the Fund.
