HAGÅTÑA (The Guam Daily Post) — Dependents of government of Guam retirees who are not enrolled in Medicare will see an increase in premiums under the self-insured medical plans for fiscal year 2024.
According to the Department of Administration letter sent out to GovGuam employees, currently enrolled members under the SelectCare PPO 1500 and HSA 2000 plans “will continue to pay the same premium amount or will see a reduction in premiums effective Oct. 1, 2023.”
However, in reviewing the SelectCare Premium Rates FY 2023 as compared to the Self Insure Premium Rates for FY 2024 it appears that a group of retirees who are currently covered by SelectCare will see their premiums increase by $600 next year.
“A unanimous decision of the negotiating team to charge $25 to dependents of retirees who are not covered by Medicare. The plan bears the cost for all their claims, because Medicare is not primary,” DOA Director Edward Birn said.
This group falls within Class IIb, Class III and Class IV are identified as Retiree Supplemental Plan Subscribers and non-medicare spouse or domestic partner and children.
Previously there was zero semi-monthly fees under the FY23 SelectCare plan for RSP Class IIb, Class III, and Class IV subscribers. But according to Birn the $25 semi-monthly premium is still lower than what they would pay if GovGuam did not move to a self-insured health plan.
“The premium is highly subsidized since they (Class IIb) would have to pay $125.83 (209.64-83.81) per pay period if the primary member were not in the RSP plan,” Birn said.
“At the time of establishing these rates, I was advised that there were no members currently subscribed to RSP Class IIb.”
SelectCare premiums for the self insured plan as compared to the FY23 SelectCare plan do show a decrease for active and retired GovGuam employees.
For example the self-insured subscriber under Class I, active employee with no dependents enrolled in HSA 2000 will pay $2.04 each pay period. The same class under the PPO 1500 will pay $77.36.
Under the FY23 SelectCare fully insured rates this class paid $55.08 bi-weekly for HSA 2000 and $157.80 bi-weekly for PPO1550.
Similar subscriber rates apply to retirees under the self-insured health plans.
For example, Class I retirees with no dependents would pay $2.21 semi-monthly under the HSA 2000 and $83.81 under the PPO 1500 as compared to previous fully insured rates at $125.05 for HSA 2000 and $168.33 under PPO 1500.
Edward Birn
