Acting Governor Cruz Asks Calvo’s SelectCare To Disclose Data Justifying Increased Premiums


Guam – Lt. Governor Mike Cruz is calling on Calvo’s SelectCare to immediately disclose publicly the data used during the negotiating process that justifies the premium rate increases in the Health Insurance plan for GovGuam employees and retirees during the 2010-2011 fiscal year.

In his letter to SelectCare Administrator Frank Campillo, the Lt. Governor writes that it is his “hope that Calvo’s SelectCare will provide a clear, rational and factually based explanation for its 2011 rates.

Read Lt. Governor Cruz’s letter to Calvo       

Specifically, Cruz is calling on SelectCare to disclose the following information:

* Medical loss ratios for each of the last three fiscal years

*medical denial rates for each of the last three fiscal eyars

*Administrative Costs for each of the last three fiscal years

Cruz states that some of this information has already been confidentially provided to members of the Government of Guam’s health insurance negotiating team, but GovGuam can not release it without SelectCare’s permission.

Cruz cites as his reasons for requesting the public release of the data, requests from GovGuam employees who have raised “concerns about the significant rise in helth insurance rates charged by your company.”

Cruz also makes reference to requests from a number of lawmakers who have asked the administration to “re-enter negotiations while holding existing rates in their place.”

The new Health insurance contract has not yet been signed. Open enrollment for the SelectCare plans ended today [Monday]. Governor’s Spokesman Shawn Gumataotao has said twice, on Friday and again today, that it is Governor Camacho’s intention to sign the new contract.

However the Governor is off island and the Lt. Governor is serving in an acting capacity.

SelectCare plan administrator Frank Campillo when contacted by PNC News declined comment on the letter.