Government to reduce healthcare contribution

Meriang said from 2.5 percent it will be reduced to 1.5 percent from each employee and employer’s contribution as mandated by the law.

Meriang said this will be possible through the amendment of the existing law. He added that the president has brought up the issue to the members of the Olbiil Era Kelulau and has agreed to change the law to accommodate the president’s request.

He said the reduction of health care contribution was due to demands from both individuals and small businesses which affected by the law and may resulted to close down their business.

“A lot of request from both individuals and also small businesses because obviously the employer will pay for their share.”Meriang said in an interview

Meriang also explained that from Oct. 1, 2010 the health care law will be moved to Oct 1, 2011 because the government wants to fund the program before it is be implemented.

He said part of the green fee fund will be used by the government and from the proposed taxes from sodas and beverages to provide seed money for the medical services of the health care program.

Meanwhile, Meriang also added that the health care law will not affect those employees who already have their own private insurance company coverage.

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