GovGuam 2011 Health Insurance Price Tag Is $70.4 Million, And That’s a Deal


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.

Read the DOA memorandum to Governor 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

                  40%  increase