HAGÅTÑA (The Guam Daily Post) — Negotiations to procure group health insurance for nearly 26,000 GovGuam employees won’t be completed in time to meet a deadline for the fiscal 2024 budget.
Department of Administration Director Edward Birn, in a letter to Speaker Therese Terlaje on Wednesday, said “the negotiating team is currently in the procurement process” and didn’t anticipate a final recommendation to be provided to Gov. Lou Leon Guerrero until Aug. 4.
Birn told the speaker the negotiating team wouldn’t meet the July 31 deadline to inform the Legislature of the accepted proposal, as required for budget purposes.
As a result, Sens. Frank Blas Jr. and Chris Duenas introduced Bill 154-37, which would extend and roll over the current Government of Guam Group Health Plan until Sept. 30, 2024.
“Bill 154-37 would introduce stabilizing fiscal impact due to its predictability, especially in contrast to the uncertainty surrounding this year’s insurance bid. The potential shift towards GovGuam self-insurance is concerning, as it may lead to greater instability and adverse fiscal consequences,” Sen. Duenas told the Post Sunday.
Under the bill, “all payment terms, promises, requirements, conditions, provisions and representation contained and specified in the Government of Guam Group Health Plan shall remain the same” until the new expiration date.
A request for proposals was issued in May seeking a third-party administrator for a fully self-insured policy for fiscal 2024 for medical, dental and pharmacy coverage.
Birn previously told the Post the intent of the procurement is to obtain the most economic and beneficial group health insurance plan for the government, which covers about 26,000 active, retired and dependents.
Roundtable
Vice Speaker Tina Muña Barnes has said she will seek more information about the proposed change in coverage. Although a member of her office is on the negotiation team, the vice speaker’s office had little to share about the ongoing procurement and negotiations as the member isn’t on the team as a representative of her office, the Post was told earlier this month.
That member represents retirees and is barred from sharing information.
“We have received a few inquiries about the same subject,” Chirag Bhojwani, Barnes’ chief of staff, previously told The Guam Daily Post. “As we did when the provider switched over to Aetna, we called for an informational briefing on the matter.”
A date for the hearing has yet to be announced.
When asked what impact a third-party self-insurer would have on the fiscal 2024 budget, Barnes’ office couldn’t say, however, Bhojwani indicated the office anticipates it would be cheaper. He said Barnes wasn’t taking a position on the move, as he said questions remain unanswered.
The RFP was issued under Section 4302 of Title 4 of the Guam Code Annotated, which also requires notices in national and international journals.
The Post was able to confirm at least one local company, NetCare, has put in a proposal.
Sen. Chris Duenas gestures during session of the Guam Legislature, July 24, 2023, at the Guam Congress Building in Hagåtña. Sen. Frank Blas Jr. and Duenas introduced Bill 154-37, which would extend and roll over the current Government of Guam Group Health Plan until Sept. 30, 2024.
