Retirement Fund comptroller David S. Demapan said although the pension agency administers the GHLIP, the liabilities will be passed on to the central CNMI government.
“As of July 31, 2009, the deficit fund balances were $18.01 million. Total liabilities…exceeded total assets of $577,675.26. Deficit fund balances represent liabilities in excess of assets available to pay for liabilities. Public Law No. 10-19 stated that the CNMI government would be ultimately liable for the liabilities of the Trust Fund and not the [Fund],” Demapan said in his latest report to the Retirement Fund’s board of trustees.
Although the government already increased premiums for its health insurance program, total collections still exceeded actual medical expenses of the members.
The government earlier hired a third-party administrator for the program to cut on expenses.
The deficit includes $15.2 million claims from different health providers; $188,000 run-off claims from Aetna prior to Nov. 1, 2007; and $1.7 million to pre-Aetna run-off claims and all others.
Demapan said at least $100,000 is owed to other vendors.
“During the month of July 2009, $1.07 million of health insurance premiums was paid to Aetna Life & Casualty (Bermuda) and $386,543.75 of life insurance premiums was paid to NetCare Life & Health Insurance Company,” he said.
