As a result of the data collection and planning activities performed under the Virgin Island’s Health Resources and Services Administration (HRSA) State Planning Grant (SPG), the territory has introduced a major plan to significantly reduce the current level of uninsurance (approximately 24 percent) down to 13 percent in just one year. The “Governor’s Health Reform Initiative” was unveiled in October to legislators and the business community and will mandate that employers provide low-cost health care coverage for their lowest paid workers and require those employees to accept. Eighty percent of businesses in the Virgin Islands have 20 or fewer employees, many of which are low-income.
The legislation, sponsored by Governor Charles W. Turnbull and Senator Roosevelt David, will create a Multiple Employer Trust. This new entity, regulated by the Division of Banking and Insurance, could contract for more affordable health coverage on the islands. Those employers who do not offer coverage as of December 31, 2005 will be required to join the Trust. By bringing together a pool of small businesses, the Trust will achieve the necessary purchasing power to significantly reduce the premium rates. Currently, the average private sector premium for single health insurance coverage is between $600 and $700 per month. Family coverage may range from $1,000 to $1,400 per month. Estimates for the new benefits plan indicate that the premiums would be less than $180 for a single employee and shared between the employer and employee. Family coverage for a spouse and three children would be approximately $700 per month under the new plan.
The governor’s initiative calls for the trust to provide “core” health insurance called VI Healthy Connections. It will cover hospital visits, outpatient surgery, doctor visits in the territory and off-island, pharmacy coverage and preventive care. Supplemental coverage to extend the benefits is also available. Annual deductibles for the combined plans would be $250 for a single employee and $750 for a family.
The legislation also proposes a premium assistance program to help lower the cost of the new premiums for those at the lowest income levels. The government would split the cost of the premium with the employer and employee.
“We have developed an affordable and comprehensive health solution that allows people to get the health care they need and it allows our health care facilities and providers to receive compensation for the services they provide,” says Jacqueline Hoop-Sinicrope, project manager for this initiative. “It’s a win-win for the community.”
The governor hopes to pass the legislation immediately after Thanksgiving. If the plan is enacted, enrollment will begin on January 1, 2006.
