Guam – The Guam Department of Administration has estimated that the total cost for the new SelectCare health insurance plan is about $70.4 million dollars. And according to a memorandum obtained by PNC News, that”s a bargain compared to the initial $91 million dollar cost that SelectCare put on the table when negotiations began earlier this year.
DOA’s Supervisor of Benefits Leonora Candaso confirmed for PNC News that the memorandum was written in July by DOA Director Lourdes Perez to Governor Felix Camacho.
It lists the total cost of the 2011 Fiscal Year SelectCare health insurance plan for GovGuam employees at $70.4 million dollars.
$55 million of that is the cost that GovGuam, or Guam’s taxpayers must contribute, plus the estimated $15.5 million is what GovGuam employees would pay in premiums.
Total Cost of 2011 SelectCare Health Insurance Plan
GovGuam share: $55 million
GovGuam Employees share: $15.4 million
FY 2011 Total: $70.4 million
However the $70.4 million dollar costs is a good deal compared to the initial $91 million dollar on the table when the negotiations began.
According to the memorandum: “The GovGuam healthcare negotiating team, in partnership with Aon consulting successfully negotiated savings versus proposed renewals of over $21 million for fiscal year 2011.”
Benifits Superviosr Candaso confirmed SelectCare initially offered the coverage for about $91 million and that GovGuam’s negotiators managed to reduce that by about $21 million.
SelectCare Proposed Cost vs. Final Cost for FY 2011 Health Insurance Plan
Initially Proposed: $91.4 million
Negotiated Savings: $21 million
Final Cost: $70.4 million
However, despite the GovGuam negotiating team’s success in reducing the initial proposal, the 2011 plan still represents a 40% increase over the $50.3 million dollar cost for GovGuam employee health insurance in Fiscal Year 2010. That is a 40% increase
FY 2011 vs. FY 2010
2011 $70.4 million
2010 $50.3 million