A hearing on the TRO is yet to be scheduled to hear the lawsuit. Chief Justice Arthur Ngiraklsong will be hearing the case.
The court has not acted on the motion for TRO.
Last week, the Koror State Government sued the national government and the National Healthcare Financing Committee to put a stop to the implementation of the new care plan by Oct. 1
The Koror State is seeking a temporary restraining order and an injunctive relief to the scheme that will require deductions from state employees to be paid in the mandatory health care plan.
Named defendants in the suit are members of the committee, Vice President Kerai Mariur, Stevenson Kuartei, Gregorio Ngirmang , Leilani Reklai and Mason Whipps.
The suit said that by Oct 1., KSG’s 266 employees already hold a commercial health insurance coverage and so are private companies such as Palau Pacific Resort, Palau Royal Resort, Palasia Hotel, Morita Corporation, Western Caroline Trading Corporation, Palau Community College, Palau Shipping Company, Palau Public Utilities Corporation, Palau National Communications Corporation, Palau Social Security Administration and Palau Community Action Agency.
The lawsuit stated that there are at least 1,000 people who are covered by private insurance company.
The government according to the plaintiff relied on “faulty assumptions” that no one in the country has obtained a commercially available health care coverage.
Under the new law all employees and employers in the country are required to participate in the new plan.
Earlier the private sector employers requested the government to delay the implementation.
The proposed payment into the plan are the following; for employees: a minimum of 2.5% of their insured earnings; for employers: a minimum of 2.5% their employee’s earnings; and for the self-employed, will pay both the employee’s and the employer’s share, for a total of minimum contribution of 5% of insured earnings.
Under the plan, a person becomes eligible for coverage by the health insurance benefit after two full quarters of paying into the health care system. The health insurance benefit will generally cover inpatient care at the Belau National Hospital and off-island care that is approved by the Medical Referral Committee. The coverage will be subject to a co-payment, which will be the responsibility of the covered patient. The amount of the copayment will be 20% of the cost of the medical service, but will be capped based on a sliding scale, to be determined by income.
For general medical services that cap will be from $200 to $400, and for inpatient care or medical referrals, it will be anywhere from $1,000 to $4,000.
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