Celina R. Babauta
SENATOR Celina R. Babauta said she is working with group health and life insurance providers to look into the possibility of creating a regional insurance program.
She met with AETNA President Todd Lazar, the firm’s government and student programs director, Hassen Khraibani, and Pacifica Insurance Underwriters Inc. President and Chief Executive Officer Shirley Sablan on March 14, 2024 to discuss “the critical need for affordable access to group health and life insurance in Micronesia.”
After the “productive meeting,” Babauta, who chairs the Senate Committee on Judiciary, Government and Law, expressed her appreciation to the insurance executives’ receptiveness to conducting an actuarial analysis of the feasibility and sustainability of a regional insurance plan.
She said she was particularly encouraged by their willingness to explore, pro bono, a TRICARE-inspired model that would benefit stakeholders throughout Micronesia.
She said this regional approach “holds immense promise for driving down insurance premiums for our constituents and mitigating the fiscal impact on member jurisdictions.”
This model “envisions a comprehensive healthcare program offering significant advantages to the ‘Blue Continent’s’ residents,” she said, referring to the Pacific region.
Babauta said she recognizes the challenges, but she firmly believes that a collaborative and a well-planned, well-structured approach can lead to a sustainable and successful program that can bring significant value to the CNMI and other members of the Association of Pacific Island Legislatures or APIL.
She said the potential for improved health outcomes and reduced financial burdens for residents across the region “is a compelling reason to further explore and develop this proposal, despite the varying fiscal considerations of each island.”
“The current reality for many APIL island communities is a critical challenge: access to affordable and quality healthcare remains elusive. The fragmented healthcare systems and high costs prevalent in many APIL islands, due to factors like geographic dispersion and limited resources, can be effectively addressed through a regional insurance program. This program, inspired by TRICARE, has the potential to leverage economies of scale, leading to lower premiums, improved access to specialists, and a strengthened healthcare infrastructure across Micronesia,” Babauta said.
She expressed confidence that an actuarial analysis, based on the report she provided, will offer valuable insights into the feasibility and sustainability of this proposed regional insurance model.
“I eagerly await your work product and look forward to continuing this important conversation and to working collaboratively with AETNA International to bring this transformative vision to fruition,” Babauta said in her letter to the insurance executives.
