Guam Health Insurance Review Committee

(a)Legislative Findings and Intent.

(1)I Liheslaturan Guåhan finds that during these challenging economic times, it is important that we make the most of every opportunity to bring affordable health insurance that will benefit the Government of Guam (GovGuam) active employees and retirees. Significant changes have taken place in recent years in the healthcare marketplace that require GovGuam to reevaluate how it can continue to provide affordable and accessible health insurance as part of the overall employee compensation/benefit package.

(2)In the past five

(5)years, health insurance premiums have been steadily increasing an average of ten percent (10%) every year. According to the Spring 2003 Health Care Trend Survey conducted by Aon Consulting, an average increase of sixteen percent (16%) in costs is expected in 2004. The Office of the Actuary, Centers for Medicare and Medicaid Services in Baltimore, Maryland, and Project HOPE conducted a survey that showed health care spending is expected to outpace economic growth over the next ten

(10)years. As a result, the health care “share” of the gross domestic product is expected to climb to nearly twenty percent (20%) by 2013. This all adds up to more costs for everyone. GovGuam, as an employer, is facing soaring premiums. The active employees and retirees are going to pay a greater share of it. Insurance companies have tried to keep the premiums down by shaving off benefits in the form of higher deductibles, and co-payments and premiums continue to rise.

(3)I Liheslaturan Guåhan finds that a study is needed to make recommendations that will be used as an analysis tool for decision makers, help facilitate data analysis and benchmarking of GovGuam’s health choices.

(4)It is therefore, the intent of I Liheslaturan Guåhan to establish a Government of Guam Health Insurance Review Committee dedicated to the study of improving the health of GovGuam active employees and retirees by increasing access to affordable, comprehensive and quality health care coverage.

(b)Establishment of the Government of Guam Health Insurance Review Committee. There is hereby established a Government of Guam Health Insurance Review Committee (Committee) which shall conduct a study regarding the costs of health care for Government of Guam active employees and retirees. The Committee shall issue, no later than six

(6)months from its initial meeting, a written report to the Speaker of I Liheslaturan Guåhan and I Maga’hågan/Maga’låhen Guåhan which shall include, but not be limited to:

(1)A health insurance program that covers GovGuam retirees alone;

(2)A health insurance program that covers GovGuam active employees alone;

(3)A health insurance program that covers GovGuam retirees and active employees;

(4)A health insurance program that covers GovGuam retirees enrolled in Medicare with GovGuam paying the premium for:

(A)Medicare Plan A - Hospital Insurance Coverage; CH. 4 PERSONNEL POLICY AND THE CIVIL SERVICE COMMISSION

(B)Medicare Plan B - Supplemental Medical Insurance;

(C)Medicare Plan A and B;

(5)How the relationship between health care providers and carriers is affecting access to and costs of health insurance coverage;

(6)General cost factors driving the rising health insurance premium rates for consumers of health insurance in all markets;

(7)How to access affordable prescription drugs and what are the general cost factors involved in prescription drug benefits, including, but not limited to, co-payments, deductible amounts, out-ofpocket expenses and the use of generic and name brand prescription drugs;

(8)Analyze the effectiveness of the insurance regulations and statutes in promoting a healthy, competitive health insurance market that meets the needs of the people of Guam by assessing such things as availability and marketing of individual and group products, rate changes, coverage changes, benefit trends, market share changes and accessibility;

(9)How self-funded health insurance plans may create an alternative to meet health care needs;

(10)Strategies to decrease the number of uninsured population; and

(11)Any other options that the Committee feels will meet sufficient benefits and costs savings for both active employees and retirees. The Committee may invite government, private sector, community entities and individuals to submit reports, provide testimony, data and other information that may assist the Committee to comply with its duties and responsibilities. The Committee is encouraged to create sub-committees as needed.

(c)Composition of the Government of Guam Health Insurance Review Committee. The Committee shall be composed of eleven

(11)members as follows:

(1)The Speaker of I Liheslaturan Guåhan or her/his designee;

(2)The Director of the Government of Guam Retirement Fund or her/his designee;

(3)The Director of the Department of Administration or her/his designee;

(4)The Chief Justice of the Supreme Court of Guam or her/his designee;

(5)The Director of the Department of Public Health and Social Services or her/his designee;

(6)The Director of the Bureau of Budget and Management Research or her/his designee;

(7)The Department of Revenue and Taxation Commissioner of Banking and Insurance or her/his designee;

(8)A Government of Guam active employee appointed by I Maga’håga/Maga’låhi;

(9)A Government of Guam retiree appointed of I Maga’håga/Maga’låhi;

(10)An expert in the field of the health insurance industry to be appointed by I Maga’håga/Maga’låhi; and

(11)The Administrator of the Guam Memorial Hospital or her/his designee. The Chairperson of the Committee shall be the Director of the Department of Administration or his or her designee. The Vice Chairperson shall be elected by the Committee at its first meeting. All Committee meetings shall be open to the public as mandated by 5 GCA, Chapter 8, Section 8107. CH. 4 PERSONNEL POLICY AND THE CIVIL SERVICE COMMISSION

(d)Term and Vacancy of the Government of Guam Health Insurance Review Committee. The Committee shall be formed and meet no later than forty-five

(45)days after the enactment of this Act. The members of the Committee shall serve for the duration of its existence. Any vacancy shall be filled in the same manner as the original appointment or selection, but only for the balance of the term. The Committee members shall serve without compensation. The Committee shall be terminated upon the acceptance of its report by the Speaker of I Liheslaturan Guåhan and I Maga’hågan/Maga’låhen Guåhan.

(e)Support Services. All Government of Guam agencies and offices shall assist the Committee in the performance of its duties and provide the Committee with appropriate studies, data and other information as requested.

(f)Appropriation. The sum of not more than One Hundred Fifty Thousand Dollars ($150,000) is hereby appropriated from the General Fund to the Committee for the purpose of hiring an Actuary for this study.

(1)The Actuary must possess the qualification of a Fellow Casualty Actuarial Society

(FCAS)in good standing with the American Academy of Actuaries and must have provided an actuarial study for any municipal, state or national government and demonstrate that this health plan(s) is currently in place.

(2)The Committee shall submit a detailed report of all monies expended to the Speaker of I Liheslaturan Guåhan and I Maga’håga/Maga’låhi. All unexpended monies shall revert back to the General Fund.