Guam § 4302 - Creation of Section 2718 Fund.

§ 4302. Creation of Section 2718 Fund.

(a) There is hereby created, separate and apart from other funds of the government of Guam, a fund

known as the Section 2718 Fund (hereinafter Fund). The Fund shall be separate and apart from all other

funds of the government of Guam, shall be kept in a separate bank account, and shall not be subject to any

transfer authority of I Maga’hågan/Maga’låhen Guåhan, or any inter-fund transfers.

(b) All proceeds from rebates paid to and entitled to the government of Guam pursuant to Section

2718(b)(1)(A) of the Public Health Services Act, as amended by the Patient Protection and Affordable Care

Act (PPACA), Public Law 111-148, shall be deposited in the Fund.

(c) All proceeds from reductions in quarterly premiums for non-compliance with the requirements of

P.L. 30-093 relative to disclosure of detailed claims utilization and cost information, shall be deposited in

the Fund.

(d) Notwithstanding the general provisions of § 22406, Title 5 GCA which require that unused and de-

appropriated funds revert to the General Fund, or any other provision of Guam law to the contrary, all de-

appropriated or unused funds appropriated from the Fund shall, in all circumstances, and whether in whole

or in part, be returned to the Section 2718 Fund, and not the General Fund.

(e) Notwithstanding the provisions of Title 5 GCA, § 21103, § 21107 and § 21110 or any other

provision of Guam law to the contrary, all interest earned on the Fund shall be returned to the Fund.

(f) The Director of Administration shall submit a report on a quarterly basis to the Speaker of I

Liheslaturan Guåhan of the revenues and interest earned, collected, and expended from the Fund, and shall

post such report on the Department’s website.

(g) All proceeds as a result of an Experience Refund or a positive Actual Experience from the

Experience Participation provisions in the Health Insurance Contract between the Health Insurance

Provider and the government of Guam shall be deposited into the Fund. For the purposes of this Subsection

(g), “Target Experience” means the amount calculated by multiplying (1) the total premiums earned by the

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Health Insurance Provider for the full twelve (12)-month Plan Year ending the last day of the fiscal year

under the Participating Policies issued to the government of Guam with respect to such Plan Year, by (2) a

percentage not lower than eighty-six percent (86%); “Actual Experience” means an amount calculated by

subtracting from the Target Experience all claims incurred during such Plan Year under all the Participating

Policies; and “Experience Refund” means a positive Actual Experience.