By Lynford Simpson, Staff ReporterPARLIAMENT'S PUBLIC Accounts Committee (PAC) was yesterday told that the failure by Government to pay its portion of the health scheme premium to which civil servants also contribute would destabilise the scheme and jeopardise the health benefits received by employees who have already paid their portion of the premium.
The Ministry of Finance, in its response to queries raised by Auditor-General Adrian Strachan, warned that: " This could lead to industrial unrest ".
Mr. Strachan, in his probe of the Government Employees Administrative Services Only (GEASO) health scheme which falls under the direction of the Ministry of Finance and Planning, said he had experienced difficulty obtaining reliable information from ministries and departments. This, he said, prevented him from verifying claims submitted by the health provider, Blue Cross.
"During the period under review, approximately $847 million was paid in respect of claim made totalling $1.121 billion but I was unable to determine the amount properly payable," Strachan said.
The Ministry was advised and subsequently introduced a system aimed at tackling the problem as of April 2002. A centralised system of payment is now in place but several ministries, departments and agencies continue to make late monthly payments.
In its response, the Ministry conceded that the continued non-compliance of the delinquent ministries, departments and agencies was a "major obstacle in the reconciliation of the health provider's claim ..."
For the period July 2002 to December 2002, the health provider submitted claims for $558 million. However the Ministry could only verify $406 million from the reports received.
It has promised to continue to "aggressively seek compliance" from the various agencies in the submission of the monthly summary report. The imposition of sanctions on the delinquent entities is being considered in order to ensure compliance with the various circulars issued.
The Ministry said that for the centralised system to work efficiently, ministries, departments and agencies are required to submit to it a monthly summary report on the last working day of each month. This report indicates the number of employees enrolled on the health scheme, details of additions, cancellations, transfers and the payment information of the employees' portion of the premium paid directly to the health provider.
The information is used by the Ministry to calculate and verify the claims for payment of Government's portion of premium submitted by the health provider.
Among the delinquent ministries and their departments are: The Ministry of National Security; Ministry of Education and certain bursar-paid schools; Ministry of Health and certain Regional Health Authorities; Ministry of Local Government and certain Parish Councils; and the Ministry of Justice.
