Guam § 4302 - Guam Health Insurance Review Committee.

§ 4302. 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;

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(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-of-

pocket 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.

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(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.