In a nine-page order, the court ruled that the public interest in implementing the new health care plan is strong.
“Article VI of the Constitution tasks that the national government to take positive action to promote the health and social welfare of the citizen of the Republic of Palau by providing free or subsidized health care,” the order stated.
It added that any further delay in its implementation will inhibit the citizen’s access to free and subsidized health care.
Earlier 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.
However the order stated that “the purported financial difficulties of two individuals do not outweigh the strong public interest in affordable health care for everyone.”
The order also ruled that the plaintiff will not suffer any irreparable harm if a preliminary injunction is not issued.
Since the preliminary injunction has not been issued, starting Oct. 1 , the amount will have to be deducted from the employees’ paychecks.
The proposed payment into the plan are the following; for employees: a minimum of 2.5 percent of their insured earnings; for employers: a minimum of 2.5 percent 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 five percent of insured earnings.
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