AG Rules Health Transparency Act Inorganic; Legislature Can NOT Have Final Say Over Healthcare Contract

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Guam – The new insurance law that was supposed to give the legislature final approval over the group health insurance contract has been found to be in-organic.

The opinion was issued today [Monday] by Guam Attorney General Lenny Rapadis.

READ the AG’s Opinion

The law found to be inorganic is Public Law 30-227. It is known as the Health Insurance Transparency Act. The Department of Administration asked the AG to review the law.

In his opinion, Rapadis writes the law is a violation of the separation of powers doctrine because it inter-poses the legislature into the approval and decision making process of the development and negotiation of the group healthcare contract.

And by virtue of the Organic Act, Rapadis concludes, these responsibilities are executive functions that properly belong to the Governor.

The law was passed last year to give the Legislature some over-sight over the GovGuam health care negotiations after a storm of controversy over the big increases in the premiums for the current Calvo Select Care plan.