GovGuam employees and retirees will pay more for FY18 health insurance

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Guam – The non-exclusive GovGuam health insurance contract will cost $5.62 million dollars more than the current non-exclusive contract.

According to a memo from the govguam health insurance negotiating team the non-exclusive contract which lt. Governor ray tenorio ultimately chose will cost a total of $101.01 million dollars which is more than fiscal year 2017’s annual cost of $95.39 million. On the other hand if govguam had selected the highest ranked exclusive contract with takecare insurance a total of $15.2 million dollars would’ve been saved. The total annual cost would’ve been $80.1 million. The nonexclusive contract will decrease the cost borne by the government by $1.89 million but this means it will also increase the cost to employees and retirees by a total of $7.51 million. This means GovGuam employees and retirees premiums will go up significantly.