Funny Money Pledged to COLA; One Insurance Company to Benefit
Democrat senators are pledging to use a supposed $18 million “saved” from awarding a contract to ONE CERTAIN INSURANCE COMPANY for COLA for GovGuam retirees. This is funny money.
Senator Mike Limtiaco has just raised a very important point about this:
“We don’t even know that this figure is true. The fact is, if everyone chose the 1500 plan — the more expensive one, then we will have no money saved on this plan. That’s why it’s irresponsible to assume we can promise this money to retirees and employees.”
Sen. Limtiaco is right. There is no mathematical way of computing the price of the health insurance contract because the customers (the employees and retirees) haven’t chosen between the 1500 and HSA2000 insurance plans. There is a very big price difference between the two plans. And unless the Legislature wants to legislate the 1500 plan out of the options while limiting GovGuam to a monopoly of one insurance carrier, then the Legislature has no responsible way of computing any savings, if there are to be any.
The inability to compute any savings until open enrollment is done begs another question: How will the majority leadership promise money to retirees and employees without knowing if there will be any savings at all.
“This is just another empty promise to retirees and employees,” Director of Communications Troy Torres said.
So if there’s no way of knowing savings and no way of appropriating money that isn’t there, then the only thing left is that the Legislature is trying to force the government to choose ONE INSURANCE COMPANY for a multi-million dollar health insurance contract.
“I’m going to call for a Caucus of Common Sense and Compromise. We can’t compromise on the budget and yet we have this (Bill 174). How long are we going to drag this on. If we can’t come to a compromise for our people, then something’s wrong with the Legislature,” Sen. Brant McCreadie said on the floor of the Legislature.

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