SENATE REASSIGNS MEASURES, REVIEWS SELF FUNDED INSURANCE PLAN

ST. THOMAS, U.S. VIRGIN ISLANDS – The 36th Legislature, led by Senate President Milton E. Potter, convened in Special Session and voted to remove two bills from the agenda for further committee review. The session then transitioned into the Committee of the Whole to hear testimony on a proposal to explore a self-funded health and dental insurance model for government employees and retirees. 

At the outset of the Special Session, lawmakers voted down the following bills from the agenda:

• Bill No. 36-0124 – An Act repealing Title 18, Virgin Islands Code, Chapter 1, Section 2, and enacting provisions to allow government employees seeking elected office to retain their employment.
• Bill No. 36-0125 – An Act amending Title 3, Virgin Islands Code, Chapters 25 and 27, relating to the simultaneous payment of non-legislative annuities to sitting members of the Legislature.

Senate President Potter explained that the bills were removed in accordance with the Legislature's pre-emption rule. He noted that the measures were not ready for final action and would instead be assigned to the committees of jurisdiction for further review, vetting, and action. 

Following the votes, the Legislature dissolved the Special Session and transitioned into the Committee of the Whole to receive testimony on Bill No. 36-0126– An Act establishing a special committee to issue a Request for Proposal (RFP) for the provision of a self-funded group health and dental insurance plan for government employees and retirees of the Government of the Virgin Islands.

During the discussion, concerns were raised about the governance structure and intent of the proposed committee. Senate President Milton E. Potter raised concerns about the structural implications of the proposal, stating that it appears to be an unusual statutory move that could undermine the original purpose of the GESC/Health Insurance Board. He questioned the creation of a separate entity to perform the duties already assigned to the Board, noting that it suggests a disagreement between the Governor and the Board’s current direction. Potter emphasized that the entity tasked with managing health insurance, whether appointed by the Governor or elected by the people, should be allowed to fulfill its responsibilities.

Testifying in support of the measure, Cindy Richardson, Director of the Division of Personnel, testified that the bill does not mandate a change but allows the Government to explore self-funding in response to rising healthcare costs and unsustainable premium increases. She emphasized the need for safeguards such as reserve funding, conservative projections, and improved payment systems to protect coverage. Adding a financial perspective, Kevin McCurdy,Commissioner of the Department of Finance, supported the bill, citing a projected 19% premium increase and over $1.2 billion paid to insurers over the past six years with limited improvement in health outcomes. He stated that self-funding could offer better control over costs, plan design, and provider networks. 

Offering a measured view, Beverly Joseph, Chairperson of the GESC/Health Insurance Board, cautioned that while self-funding has advantages, it also carries financial and administrative risks. She noted a recent analysis showed potential savings of $4.3 million but warned that exposure to large, unpredictable claims requires strong oversight and infrastructure. Senator Franklin D. Johnson expressed concern about the human cost of the proposal, emphasizing that while the discussion centers on cost savings, it risks overlooking the value of human life, particularly in a population that heavily depends on government-sponsored health insurance. 

Due to technical difficulties, lawmakers waived the debate time and rose out of Committee of the Whole and back into Special Session. Policymakers unanimously voted unfavorably for Bill No. 36-0126. Senator Potter stated that despite potential cost savings in the long-term it can be catastrophic. 

Senators present were, Milton E. Potter, Kenneth L. Gittens, Novelle E. Francis, Jr., Marvin Blyden, Ray Fonseca, Alma Francis-Heyliger, Avery Lewis, Clifford Joseph, Angel L. Bolques, Jr., Kurt A. Vialet, Marise C. James, Carla J. Joseph, and Franklin D. Johnson.

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Press Contact: Africah Harrigan

Email: aharrigan@legvi.org