The House of Representatives has approved a bill aimed at averting the imminent termination of retiree health insurance coverage under the Commonwealth’s Group Health & Life Insurance Program.
House Bill 24-75 passed with a unanimous 19-0 vote last Dec. 6 and authorizes the continued payment of employer premiums by allowing the expenditure of $3,747,585 in FY2025 revenues recently identified by Gov. David M. Apatang and appropriated by the Legislature for Fiscal Year 2026.
Rep. Blas Jonathan T. Attao said the bill will remit $2,800,680.75 to the Group Health and Life Insurance program to ensure retirees continue receiving their health benefits. An additional $936,896.25 will be remitted to the Public School System to cover the 25% share tied to these collections.
“We’re authorizing in this legislation for the Secretary of Finance to allocate these funds directly to the group health life insurance for our retirees, and the 25% portion over to PSS to assist in their needs and financial obligations,” he said. “At least now, the retirees wouldn’t have to stress about the letter they received from the Settlement Fund. We all know every single member here has gotten calls from family members, friends, and members of our community regarding this concern. This would address over 2,000 retirees, their beneficiaries, and those under disability receiving pension benefits.”
Rep. Roy C. Ada thanked the House leadership and committees for moving swiftly. “I want to acknowledge our good chairman on Ways and Means for acting swiftly when we received the communication from the governor about the situation with the retirees’ group health life insurance,” Ada said. “Chairman JP Sablan coordinated with our counterparts in the Senate, with Fiscal Affairs Chairman Sen. Jude Hofschneider, and together they addressed this matter and produced this product.”
Rep. Daniel I. Aquino also expressed gratitude, saying, “I just want to thank my colleague, Leader Ada, for giving compliment to Chairman JP, who is from Precinct 2. I just want to thank everybody.”
Rep. JP Sablan said the measure is only a partial fix but buys lawmakers time to address the remaining funding gap. “I want to thank the vice chair of your Committee on Ways and Means for introducing this legislation so that we can divert $2.8 million to address the July retirees’ issue we are encountering,” Sablan said. “To all the retirees out there: this is just partial funding to address GHLI. We still have to address $4.4 million to reach the total of $7.2 million required. But with these funds going to GHLI, it buys us time for the joint committees on Ways and Means and Fiscal Affairs to address the remaining balance in the revised budget.”
Rep. Patrick H. San Nicolas said the measure protects retirees who are already financially vulnerable. “I’m in support of this legislation and want to thank the author, the co-sponsors, and the governor for acting swiftly in informing the Legislature that there are available funds for the retirees and PSS,” he said. “It protects our retirees, many of whom live on fixed incomes. Losing health insurance would be a serious hardship, and this legislation will prevent that once it becomes law. The bill does not increase the budget ceiling, and it does not create new spending—it simply uses funds already available.”
According to the bill, the GHLI Retiree Business Unit was not funded in the enacted FY2026 budget, putting retiree coverage at immediate risk. Gov. Arnold I. Palacios informed lawmakers on Nov. 14 that approximately $7.2 million is needed for retiree premiums and another $3.6 million for active employees to maintain uninterrupted coverage. To prevent a lapse, the bill authorizes the Secretary of Finance to use $3.7 million in FY2025 revenues—funds received within the standard 60-day post-closing period that are considered FY2025 money under accounting rules. Lawmakers emphasized that the measure does not constitute a new appropriation or increase the FY2026 budget ceiling.
The bill’s sole purpose is to ensure continued GHLI retiree coverage and prevent an immediate lapse affecting retirees and their dependents.
Also, last Dec. 5, the Settlement Fund issued a separate update warning of a potential lapse in retiree health insurance coverage and the discontinuation of 25% benefit payments after Dec. 31, 2025.
It noted that while the House’s action authorizes $2.8 million for retiree GHLI premiums, this amount still leaves a $4.4 million shortfall for FY2026.
“Without a revised budget to fully fund retirees’ health insurance, and clarification of the duration of health insurance coverage covered by the $2.8 million, the risk of default and termination of the Aetna health insurance is almost certain,” the Fund said.
It encouraged retirees to proactively explore alternative health insurance options through the Health Insurance Marketplace, Medicaid, and Medicare.
The Settlement Fund also confirmed that the NMI government has no funding for the 25% benefit payments beyond Dec. 31. These payments will cease on Jan. 1, 2026. The Fund said it remains in communication with the government and will update members as new information becomes available.
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