Health Insurance premiums on the rise; government workers to avoid negative impacts on take home pay for fiscal year 2022

ST. THOMAS US VIGIN ISLANDS - Members of the 34th Legislature of the United States Virgin Islands gathered at the Earle B. Ottley Legislative Hall on Tuesday, September 13, 2021, to discuss the rising cost of healthcare to the government employees and retirees of the central government. The hearing raised more questions of concerns than answers when it concluded.

The Committee of the Whole intended to receive testimony on the renewal of the Group Insurance Agreements between the Government of the Virgin Islands, through the GESC/Health Insurance Board of Trustees, and Cigna Health and Life Insurance Company, and Standard. “My goal here today is to ensure that we do not burden government workers with more health care cost,” Senator Alma Francis Heyliger stated. “They have endured a lot: the hurricanes, the pandemic, the 8 percent salary reduction, GERS issues, WAPA and the displacement of our students from a normal school setting. We should be able to continue absorbing any increase for our government workers and our retirees.”

The discussion centered around the following:

• The Third Renewal of the Group Medical Health Insurance Agreement between the Government of the Virgin Islands, through the GESC/Health Insurance Board of Trustees, and Cigna Health and Life Insurance Company for Group Health Insurance (OLC No. 2243-2021)

• The Third Renewal of Group Dental Health Insurance Agreement between the Government of the Virgin Islands, through the GESC/Health Insurance Board of Trustees, and Cigna Health and Life Insurance Company for Group Dental Insurance (OLC No. 2244-2021)

• The First Renewal of the Agreement between the Government of the Virgin Islands, through the GESC/Health Insurance Board of Trustees, and Standard Insurance Company for Group Life and Accidental Death and Dismemberment Insurance (OLC No. 2247-2021)

• The Second Renewal of the Group Vision Health Insurance Agreement between the Government of the Virgin Islands, through the GESC/Health Insurance Board of Trustees, and Standard Insurance Company Group Vision Insurance (OLC No. 2248-2021)

Lawmakers learned that the new price tag for the increase for fiscal year 2022 budget will require about $4.4 million. For the past two fiscal years the Legislature passed legislation to absorb the cost of the increases so that it would not affect the paychecks of government workers. This fiscal year would be no different as the senators vowed to make up the difference, as the benefits and services will remain status quo for this fiscal year.

Members of the body was presented with the option of using $4.7 million from the Premium Stabilization Reserve Fund offered by Cigna to offset the increase, allowing the government workers paychecks not to be impacted negatively. The hearing revealed that some semiautonomous agencies like the Virgin Islands Port Authority who share the benefits from the plan pay 100% insurance cost for their employees. This did not sit well with some lawmakers.

As a result, the chairman of the Health, Hospitals and Human Services Committee pledges to conduct semiannual meetings with the Health Insurance Board and other stakeholders to review reports that can give lawmakers deeper insight into the actual reasons causing prices for health care to continue rising and ways to combat that issue.

The Committee on Rules and Judiciary will host a hearing at the Earle B. Ottley Legislative Hall on St. Thomas to act on several bills including the fiscal year 2022 legislation. The full body will then convene in Legislative Session on Friday, September 17, 2021, at 10:00 a.m. at the Earle B. Ottley Legislative Hall on St. Thomas. Both hearings did not release agendas by this article’s deadline.