By: L.N. Reklai
May 17, 2017 (Ngerulmud, Palau) House bill 10-39-3S seeking to separate the responsibility for the management of national healthcare funding from Social Security Administration, transferring that responsibility to the National Healthcare Financing Governing Committee passed first reading in the House on May 17, 2017.
The bill findings state that the law initially placed the responsibility for collecting and investing health insurance funds in the Social Security Administration due to its experience in collecting and investing contributions.
In the findings of the bill it also states that over seven years have passed and based on oversight hearings, it finds that Palau’s healthcare financing system has matured and that the investment needs of Social Security Administration and Healthcare funds are “very different.”
“Social Security Fund invests to receive predictable returns to pay predictable obligation..in contrast, Healthcare Funds need to seek the highest possible risk-adjusted returns to pay unpredictable obligations,” state the findings.
The bill seeks to transfer responsibility of managing, administrating and investing the healthcare fund to the National Healthcare Financing Governing Committee no later than September 30, 2018. [/restrict]