Gov. John deJongh Jr. voiced concern Thursday on the inability of the Government Employees Services Commission / Health Insurance Board to negotiate a timely contract for health insurance coverage for active government employees.
“Last night’s hearing by the Senate Committee of the Whole clarified for the public and, especially for government workers, that the health insurance board has not completed a contract for my review or execution,” deJongh said, adding that the board is facing a Sept. 30 deadline to develop such a contract or face a lapse in health insurance coverage for government employees.
The governor said board members have known, since a Government House meeting on June 23, that $150.9 million was the outer limit of the government’s ability to pay for the one year health insurance contract. DeJongh said both parties had the same objective, to “ensure that our employees and their families have access to insurance coverage.”
“Where we disagree is that the board ignores the realities of our financial situation,” he said, adding that health insurance for more than 7,000 government workers hangs in the balance.
DeJongh noted that despite the board’s being informed in late June that the territory’s finances could not support a health insurance contract valued at more than $150.9 million, the board responded on Aug. 1 with a cost of $159.7 million. Again on August 14, the board was cautioned that the budget could only support a contract totaling no more than $150.9 million, according to a press release from Government House.
DeJongh said that, as of the end of the business day on Thursday, he has not received any contract to review, approve and submit to the 30th Legislature, and he urged the Health Insurance Board to negotiate a contract extension with CIGNA beyond Sept. 30 and open negotiations towards a contract within the parameters of what the government can afford.
“We cannot ignore the fact that we face a $74 million dollar shortfall in FY 2015. This contract cannot be negotiated in a vacuum,” he said.
DeJongh said, “The situation we now find ourselves as a result of the board’s stalling and desire to ignore financial realties cannot become the norm. It is in our best interest to be timely and have the linkage between our coverage levels and ability to put checks in payment.”
