Creation of the Government of Guam Self-Funded Employee Health Benefits Trust Fund

Accounts, Herein Referred to as “Trust Fund Accounts.”

(a)The Trust Fund Accounts are hereby created and shall not be commingled with the General Fund or any other funds of the government of Guam;

(b)A separate bank account for all Trust Fund Accounts shall be established for each Self Funded Health Benefits Plan;

(c)All employer and employee premium payments shall be deposited in the respective Self Funded Health Benefits Plan Trust Fund Account. Any foster children covered by a Self Funded Health Benefits Plan shall be fully paid for by the government of Guam;

(d)Moneys in the Trust Fund Accounts shall be used by the Department of Administration to pay health benefit related claims and associated administrative costs for any Self Funded Health Benefits Plan negotiated by the team authorized in § 4302

(c)of Chapter 4, Article 3, Title 4, Guam Code Annotated;

(e)Income earned on the moneys in the Trust Fund Accounts shall be credited to the respective Self Funded Health Benefits Plan’s Trust Fund Account;

(f)Moneys in the Trust Fund Accounts are continuously appropriated in accordance with this Section and are not subject to any transfer authority of I Maga’håga/Maga’låhi; CH. 4 PERSONNEL POLICY AND THE CIVIL SERVICE COMMISSION

(g)The Trust Fund Accounts shall maintain a minimum reserve equal to twenty-five percent (25%) of prior fund year coverage claim payments including incurred but not reported

(IBNR)claim liability for the same period;

(h)There shall be an annual audited report based on generally accepted accounting principles and generally accepted auditing standards, and supported by actuarial review and opinion of IBNR claims and other future contingent liabilities. The report shall include at a minimum, but not limited to, the following:

(1)Opinion of Independent Certified Public Accountant;

(2)Balance Sheet;

(3)Statement of Revenues and Expenses;

(4)Statement of Changes in Fund Balances;

(5)Statement of Cash Flows, direct method;

(6)Notes to Financial Statements; and

(7)A premium equivalency charge developed from total fund year expenditures, including an estimate for IBNR claim cost.