PALAU — A bill proposing the separation of Palau’s Healthcare Fund (HCF) from the Social Security Administration (SSA) is before the House of Delegates Health, Social and Cultural Affairs Committee.
Under the current system, established in 2010, the SSA manages the collection, payments, investments, and administration of both the HCF and the national social security program.
House Bill 11-15-1S argues that after 13 years, the HCF has matured and the current structure hinders its efficiency. The bill states the “National Healthcare Fund Governing Committee should be able to manage and invest healthcare funds in a manner most suited to the Healthcare Fund and within legal parameters.”
The legislation proposes a three-year transition period for tasks currently handled by the SSA to be transferred to the HCF. It also recommends changes to policy objectives and restrictions on investing healthcare funds.
Separating the HCF administration from the SSA would “allow Social Security Administration to focus on its various other duties,” according to the House Health, Social and Cultural Affairs Committee report adopted Feb. 29, 2024.