Senators, in the Senate version of the proposed FY2011 budget which was passed on third and final reading, voted to postpone the implementation of contributions to the to October 1 next year. The recommendation was made in response to requests by the country’s private sector employers, particularly those who already offer health care insurance for their employees.
According to Social Security Administrator Greg Ngirmang in a press statement, “The HCF working group strongly advises against postponing the program. There is no guarantee that the reasons they have now for postponing the program will be any different or better a year from now.”
On the issue that the program disregards employers who offer private health insurance to their employers, Carolyn Nakamura, who attended an HCF presentation to the staff of Belau Transfer and Terminal Co., said, “I admit that in the beginning, I was very opposed to the idea, especially because I have private health insurance. At the same time, I was hearing a lot of negative views that made me dislike the program even more. But now, after really understanding the program, I really like it. I don’t intend to get rid of my private insurance, but instead, I would like to see how the programs will complement each other.”
Ngirmang added that the program has gained much momentum since the law was enacted, “and many people are looking forward to it,” he said. “It would not make sense to delay this program at a time when so many people are anticipating its implementation and when expert advice pointedly states that the HCF will substantially reduce the long-term fiscal burden of the government.”
Last week, two experts visited Palau to provide assistance for the HCF program. Chay Yee, former Deputy General Manager of Singapore’s Central Provident Fund and Jean-Claude Hennicot, ADB Actuary, were on island to work with the HCF working group on implementation details.
According to Chay, “I think they have designed a workable healthcare financing program that will provide basic needs for Palau.”
Chay and Hennicot assisted the HCF working group in addressing critical key areas “to protecting the sustainability and financing of the program.”
“I believe that the team working under the leadership of Administrator Greg Ngirmang is in a good position to make a success of the HCF,” added Chay.
Hennicot, on the other hand, said, “I am very optimistic and pleased that this program was passed for implementation. It is a very good program and I am convinced all people of Palau will be glad to have this in place once it is up and running.
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