Last Updated on Tuesday, 25 September 2012 18:36 Written by Clynt Ridgell Tuesday, 25 September 2012 17:09
Guam News - Guam News
Guam - Calvo's SelectCare was the only health insurance provider to testify in opposition to a bill that would allow GovGuam employees to pick their health insurance provider from a list of qualified companies. Bill 513 which is sponsored by 11 senators received testimony in support of the bill from three other health insurance providers.
Staywell, TakeCare, and NetCare insurance providers all submitted written testimony in favor of bill 513. The measure introduced by Senator Ben Pangelinan and co-sponsored by ten other lawmakers would change the way that health insurance is procured by GovGuam.
Dim lights Embed Embed this video on your siteInstead of the current request for proposal process that involves negotiations that whittle choices down to one insurance provider for all of GovGuam, bill 513 would allow all providers who qualify to offer their services to GovGuam employees. Staywell, TakeCare and NetCare all have problems with the current procurement process.
TakeCare writes that "the existing request for proposal process for health insurance is flawed and chaotic and has hampered the government of Guam's ability to promote competition within the existing Guam health insurance program." NetCare states in their letter that "We support the proposal as it simplifies the process and levels the playing field for all potential health carriers." Staywell writes that it supports bill 513 "and it's intent to simplify the procurement process and provide a choice of insurance carriers for the employees of the Guam health insurance program."
Calvo's SelectCare is the only insurance company to testify in opposition to the bill. For the last three years SelectCare has been the sole provider of health insurance to GovGuam employees and this year procurement protests were filed by TakeCare, Staywell and SelectCare themselves. Nevertheless SelectCare is opposed to the bill. SelectCare Health Plan Administrator Frank Campillo says that it lowers the qualifying threshold.
"The bill bypasses procurement processes that had been established by GovGuam to ensure that companies have the ability to perform the required services based on prior service and fiscal soundness to pay claims,? said Campillo. He also says that the bill bypasses established insurance regulatory requirements that have been in place for years for the public's protection and safety. Another reason for SelectCare's opposition to the bill is because they believe that allowing GovGuam employees to pick from more insurance carriers won't necessarily result in lower rates.
"Industry studies have shown that multiple carriers may bring the cost up due to the price and adjustments for uncertainty and adverse selection, in fact based on both our internal and industry standard rate and protocols rates are higher when multiple carriers are present,? said Campillo.
?Senator Pangelinan on the other hand has maintained that the bill would bring costs down by allowing for more competition and thus more competitive rates. Department of Administration Director Benita Manglona also submitted testimony in opposition to the bill as it removes the negotiation process reducing the ability to negotiate for lower rates.
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