Guam News - Guam News
Guam - The cost of providing health care for GovGuam employees has become a campaign issue. Lt. Gubernatorial candidate Senator Frank Aguon has filed a complaint with Rev & Tax calling for the insurance commissioner to investigate what the Gutierrez-Aguon campaign charges is a nearly 300% increase in rates for GovGuam employees next year. Calvo's SelectCare, the only health care provider for GovGuam, calls the charge false and misleading.
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Of the 18 plans, 4 have increases above 200%.
The SelectCare2000 [$2000 deductible] Class V plan for 2 GovGuam Employees would boost the monthly premium from $45.24 a month now, to $175.18 a month next year. A 287.21% increase.
The same plan for retirees raises the monthly premium from 45.24 to $175.16, a 287.18% increase. 2 other plans have increases of 257.54% and 257.60%.
The other 14 plans have increase of under 200% with 4 plans showing increases under 100%.
Calvo SelectCare Plan Administrator Frank Campillo said the contract was negotiated with representatives from a variety of GuvGuam branches, including a representative from the legislature.
Campillo said rates have risen as a result of the new mandates required by the Obama Health Care Act, some aspects of which took affect Thursday. That impact of Obama Care, averaged out over all the plans, is about 12%, he said. Costs of medical services have also risen.
When you look at the combined monthly premium a GovGuam employee will pay in 2011, plus GovGuam's contribution, most of the increases are in the 70% range, said Campillo.
Campillo acknowledged that the monthly premium paid by an individual GovGuam employee would be higher. But he said that is because the cash-poor Government of Guam was unable to increase its contribution to the plan next year.
He provided the below examples of the combined monthly premium increases that would be paid by a GovGuam employee for an individual and a family plan.
Monthly Premium Paid by GovGuam PLUS GovGuam Employee
2010 2011 Increase
Monthly - Individual [Class I] $104 $182 75%
Monthly - Family [Class IV] $313 $533 70.3%
Monthly Premium Paid by GovGuam Employee Only
2010 2011 Increase
Monthly - Individual [Class I ] $0 $10.01 100%
Monthly - Family [Class IV] $74.60 $186.55 150.07%
Monthly - 2 GG & Family [Class V] $45.24 $175.18 287.21%
Even with these increases, Campillo argues that the Government of Guam's health insurance plan for its employees remains generaous and compares favorably to higher cost plans for U.S. Governmnet employees on Guam and the insurance plans offered to public employees in California.
The contract has not yet been signed. Spokesman for the Attorney General's office Bryan Cruz states that the GovGuam select care contract is being transmitted to the governor's office for his signature.
Open enrollment for the health insurance plan ends on Monday.
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