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Thursday, March 28, 2024
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Government Health Insurance Renewed without Benefit Cuts

The V.I. Legislature approved and Gov. John deJongh Jr. signed health insurance contracts for the upcoming year late Tuesday without any reductions in benefits, after the Legislature diverted some federal windfall funds to make up the funding deficit. [Health Insurance Contract] [Dental Insurance Contract] The plan covers roughly 7,000 V.I. residents.

"This is the same plan we currently have with all the same benefits," Senate President Shawn-Michael Malone said.

The plan was scheduled to expire at midnight. DeJongh’s proposed budget, which continues the back-to-back budget cuts most agencies have received the last several years, allocates $150.9 million for government employees’ insurance, making it the second largest single government budget item, after the Education Department budget. The Government Employee Services Commission, which negotiates the contract, has refused to cut benefits to meet the available funding, leaving the plan costing $159 million in total. Action on the main V.I. government budget bill was delayed until the impasse could be worked out. (See Related Links below)

Monday, deJongh submitted the health insurance contract to the Legislature, hours after having received them from the GESC.

DeJongh did not sign the documents Monday, saying he objected to what would be a $6.24 million increase in the cost of the government’s portion of the health insurance premiums. He said he would sign it if the Legislature found and appropriated the money.

The Legislature took the funding out of a recent $19.9 million windfall due to federal auditing and reconciling of accounts at the territory’s Medical Assistance Program. DeJongh has proposed legislation devoting the funds to an array of underfunded health care and mental health care uses. [Bill 30-0501]

The Legislature passed an amendment from Sen. Clifford Graham reducing a number of its line items to reach the needed amount, then devoting it to the government health insurance plan.

"I’m asking staff to take these straight to Government House for the governor’s signature, so we can be sure insurance does not lapse," Malone said right after the late evening vote to approve the contract. [Bill 30-0503]

At 10:30 p.m. Government House released a statement saying the contracts were signed and insurance would continue uninterrupted for government employees and dependents.

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