Retirement Fund Chairman Sixto K. Igisomar told senators on Wednesday that NMI Group Health and Life Insurance administrator, Richard Villagomez, had been advised that all government employees unable to work during the shutdown period must pay 100 percent of their life and health insurance premium if their employer, thegovernment, fails to pay its share.
The government cannot withdraw funds from its coffers without a new budget.
Currently, government employees pay only 50 percent of their premium while the government pays the other 50 percent.
Nonessential government employees who learned that they had to pay for their premiums called lawmakers yesterday and urged them to pass the budget. Staffers of some lawmakers said they received threats over the phone.
“They are seriously concerned about losing 40 hours of work and their health insurance benefits,” said a staffer who requested anonymity.
Igisomar urged the Senate to pass the House budget bill to avoid “serious negative direct and indirect” consequences to the Fund and its more than 6,000 members and their families.
Most of those affected by the shutdown, Igisomar said, are defined benefit plan members.
The longer the shutdown continues, he said, the bigger problem it brings to the Fund because employee and employer contributions will not be remitted, which means a significant reduction of revenues for the Fund.
Over 1,000 employees are unable to work due to the shutdown.
Igisomar said the drop in the number of enrollees below a certain threshold percentage will result in the cancellation of policies.
And because both life and health policies are part of a “group” coverage, nonperformance by one part of the group jeopardizes coverage of the entire group, he added,
The Fund, Igisomar said, is ready to pay a portion of the retirees’ life and health insurance premiums; however, its members’ policy is at risk of cancellation due to the prolonged shutdown.
The Senate, once again, amended the budget bill, which now returns to the House.
