New law requires GovGuam to select the most affordable insurance plan

Voting 11-4, senators overrode Gov. Eddie Calvo’s veto of a bill that would require the government of Guam to contract just one provider that offers the most affordable insurance plan.

Speaker Benjamin Cruz, author of the Bill 3-34, said the legislation can save GovGuam millions of dollars in future health insurance contracts. With the enactment of the measure, only the most “economical” health insurance contract will be forwarded to Adelup for signature—provided that covered benefits remain the same under law, the speaker said.

“With the government of Guam on the brink of payless paydays, this bill is common sense,” Cruz said. “Health benefits will stay the same, and taxpayers get the best deal possible for their tax dollars.”

The override is part of Cruz’s concerted effort to responsibly cut costs without reducing basic community services. Just last week, the Office of Finance and Budget reported that the recently-enacted Tax Cuts and Jobs Act of 2017 would reduce income tax revenues by approximately $67 million between the months of February and September 2018 alone.

Under Bill 3-34, which is now a public law, only the “most economical and beneficial” contract will be sent to Adelup for signature regardless of whether that contract is exclusive or nonexclusive—removing the Administration’s ability to spend more than appropriated without further legislative action. </