Koror, Palau – A bill before the Palau Senate proposes an increase in employer contributions to the national health insurance program to cover a wider range of medical expenses.
Senate Bill No. 11-18 calls for raising the employer contribution rate from 2.5% to 3% of employee salaries.
The legislation’s sponsors cite rising incidences of diabetes and hypertension in Palau. They argue that the increased funding would improve patient access to necessary medications.
Additionally, the bill proposes expanding coverage to include repatriation costs for Palauan citizens who receive medical treatment abroad and die while there. The benefit would also extend to deceased foreign workers in Palau.
While acknowledging the program’s positive impact, the bill mentions a report by the Office of Economic Development (OEK) which found that the current National Health Insurance (NHI) “does not cover every necessary aspect of the people’s health and life.”
Palau boasts one of the few universal healthcare systems in the Pacific. The National Health Financing Act, implemented in 2010, established a two-pronged approach: the NHI, which covers hospitalization and off-island referrals, and the Medical Savings Account, used for checkups and outpatient services. Participation in the program is mandatory for all Palauan employees.