New Health Insurance Plan to Cost GovGuam $50M; Only $30M Budgeted

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Guam – BBMR Director Bertha Dueanas estimates that the new health insurance plan that went into effect Friday for GovGuam employees will cost the Government of Guam in the neighborhood of  $50 million dollars. But only $30 million dollars has been appropriated in the 2011 budget to cover health insurance expenses. That has left GovGuam $20 million dollars short.

          

The Budget Director says various legislative appropriations have authorized:

*$19.5 million in health insurance premium payments for GovGuam retirees about $4.5 million to cover GovGuam’s portion of the premiums for Department of Education employees.

*Another $4.5 million to cover all the other line agency employees.

* And nearly $2 million more in contributions to the health care for UOG and GCC employees.

The total is roughly 30 million which has been budgeted as GovGuam’s contribution to its employees health care. $20 million short of what’s needed to cover the estimated $50 million cost of the new plan.