Campillo said while the benefit of providing health coverage for more people cannot be argued, it ultimately comes down to who will foot the bill for more residents to have access to affordable health care.
“Whether you like it or not, prices will go up,” Campillo said, qualifying that it is too premature to know when and by how much insurance costs will increase as any extra income for companies will be offset by the low price of government plans.
Campillo said there will be two plans offered, a government plan and a private plan. He said it is very likely the government plan will be considerably cheaper than the plan offered by the private insurer. “It’s very possible that the parent insurance company will disappear as the government takes over,” he said.
Equality
While the healthcare bill represents progress, Guam Memorial Hospital administrators said more could have been done to ensure equality for the territories.
Since one out of every four patients at GMH is a self-payer, hospital administrators said the healthcare bill is a step forward. But even though the law increases Guam’s Medicaid cap, hospital administrators said the hospital will still hurt financially as a result.
Starting in fiscal year 2011, the Medicaid cap will increase to approximately $24 million. The increases will continue until fiscal year 2019 when Guam’s Medicaid funding will be roughly $58,000.
However, even with the Medicaid increases, GMH administrators say the hospital will still only receive about 57 cents to the dollar for Medicare patients.
Murky details
Francis Santos, associate administrator of StayWell Insurance, said some details of the healthcare reform bill are still murky. Health insurance companies need to know how to apply the bill’s provisions to Guam customers, he said.
“Some of the provisions will take effect within six months, and for a business that’s considered immediate,” Santos said.
Santos said several questions need to be answered and clarified before insurance companies can know what the bill will mean for existing and new insurance customers.
The insurance exchange provision and definitions like pre-existing conditions need to be clearly explained, he said, to see where island residents fit in.
“It’s a 2,000 page bill,” said Santos. “It needs to be clarified.”
Santos said StayWell representatives will be meeting with Bordallo within the coming weeks to determine the impacts on Guam insurance companies.
Confusion
Democratic Sen. Frank Aguon said he will also be holding a community roundtable meeting to discuss the implications of the healthcare reform law on Guam.
The chair of the health committee said the comprehensive reform law has created confusion and a number of questions as far as Guam residents are concerned.
Public health officials, representatives from health insurance companies, and small businesses will be present to discuss the implications of the bill.
The discussion will be held on April 6 at the legislative building.
The core of the massive law is the extension of health care coverage to 32 million who now lack it, a goal to be achieved through a complex cocktail of new mandates for individuals and employers, subsidies for people who can’t afford to buy coverage on their own, consumer-friendly rules clamped on insurers, tax breaks, and marketplaces to shop for health plans.
