Protests filed against GovGuam health insurance

Frank Campillo, SelectCare plan administrator, said the government’s failure to apply the Local Preference Policy to SelectCare is a violation of Guam Procurement Law.

Calvo’s SelectCare has filed a protest against the awarding of the GovGuam FY 2020 health insurance contract to Aetna International.

According to SelectCare, the protest is based on the failure of the negotiating committee to apply the “Local Preference Policy” as required by Guam procurement laws and regulations, which are cited in the Request for Proposal.

The law mandates the application of a local procurement policy in the procurement of services (“Local Preference Policy”) under 5 GCA § 5008.

SelectCare said it qualifies as a local business under the Local Preference Policy and is thus entitled to the local preference.

Last week, SelectCare sought clarification from the Department of Administration as to whether the procurement law, as it relates to local preference, was considered when finalizing the rates for the FY 2020 and making the award to Aetna.

However, SelectCare said the requested clarifications were not answered by DOA. However, based upon the FY20 Aetna rates just published by the Government and the FY20 rates submitted by SelectCare, it appears that the government did not apply the Local Preference Policy to SelectCare’s proposal, said Frank Campillo, SelectCare plan administrator.

Campillo said the government’s failure to apply the Local Preference Policy to SelectCare is a violation of Guam Procurement Law.

“The Government must apply the Local Preference Policy in the procurement of
services. The Government failed to apply the local preference to SelectCare’s
proposed rates even though it qualifies as a local business under the Local
Preference Policy and Aetna does not. Thus, the Negotiating Committee must
withdraw its recommendation of Aetna to the Governor or the Government must
cancel the award to Aetna, as the case may be, and apply the Local Preference Policy.
We are seeking this relief on behalf of the thousands of GovGuam members who
have shared their concerns with us, and we look forward to GovGuam implementing
the appropriate remedies to this protest and the expeditious resolution of this
matter,” Campillo said.

He added, “There are special provisions in place that ensures that there is no
interruption of coverage for the Government employees, retirees, and their families
whom we have served for over 18 years.”

FY2020 GovGuam Health Insurance Plan

Earlier, TakeCare also protested the award of the GovGuam contract to Aetna, saying its case against GovGuam hasn’t been resolved yet and a stay in the contract should have been enforced

According to TakeCare president and CEO Joseph Husslein, the case it filed against GovGuam is still in judicial review. Despite this, he said the GovGuam health insurance contract was awarded to Aetna despite the automatic stay in effect.

TakeCare filed for judicial review in the Superior Court of Guam on Aug. 12, 2019. And on Aug. 26, 2019, TakeCare filed a motion seeking a restraining order to enforce the automatic stay.

Despite this, Husslein said GovGuam went on and awarded the contract which he said is a violation of the automatic stay.

TakeCare is now requesting that the GovGuam health insurance procurement be declared null and void and that no award of a group health program contract be made until the resolution of its protest.

Open enrollment begins

Meanwhile, the open enrollment period for the fiscal year 2020 government of Guam group health insurance program started today ore details have been released by the government on the insurance rates offered to GovGuam.

Aetna International has been awarded the exclusive contract to provide medical and dental coverage for GovGuam employees, dependents, and retirees.

Under Aetna’s rates, set deductible amounts are mostly at par or below the rates offered by previous providers.

For the HSA 2000 plan, a single subscriber pays $1.35 while the government pays $55.27. For the HSA 2000 family plan, the government share is $127.45 while the subscriber pays $36.89.

For the preferred provider organization or PPO 1500 Plan, a single subscriber pays $58.65 while the government share is $108.31.

For the family option under the PPO 1500, the subscriber shells out $194.20 while the government pays $273.08.

According to GovGuam, the open enrollment period provides a window of opportunity to make changes to the subscriber’s insurance coverage.

The open enrollment period ends on October 12.