Dr. Omar Davies, Minister of Finance. - FILE

The Finance Ministry on Tuesday reopened to public tender the contract for administration of the $2 billion health insurance scheme for civil servants.

The Government Employees Administrative Services Only (GEASO) scheme, as it is called, has been the subject of debate for years among health insurance providers who have been prodding the government to open up the business - which they have been shut out of for the past 18 years - to competition.

Since its establishment in 1988, GEASO, which covers 67,000 active public sector employees and an estimated 110,000 dependents, has been administered by Blue Cross of Jamaica.

Not risk-based

The scheme as operated is not risk-based - Blue Cross does not collect a premium and provide a risk-based coverage. Essentially, the health insurance provider collects $4 from the government for every dollar it collects from employees, who pay one dollar for $5 of health insurance, less administrative costs.

Near the close of 2005, Finance Minister Dr. Omar Davies appeared ready to open the scheme to tender but held back, awaiting approval from representatives from public sector organisations such as the Jamaica Civil Service Association (JCSA), which has over the years jointly managed the programme with Blue Cross.

The ministry eventually pressed ahead and went to tender earlier this year, but withdrew the request for proposal in the fourth calendar quarter, giving no explanation.

But Tuesday, the tender was reopened and will run until January 12, when bids will be opened.

"It is our considered view that we do not want to make a comment at this time at this stage of the process," said Cordell Braham, director of communications, Ministry of Finance.

The GEASO scheme is funded by joint monthly contributions by the government which, since 1997, pays 80 per cent of the cost, and employees 20 per cent. Initially, the contribution was 50/50.

Government has put over $12 billion in GEASO over 18 years, $10 billion of which represented its contributions since 1997.

For the 2005/06 fiscal year, government spent $1.68 billion for its 80 per cent contribution and for the current fiscal year, state officials expect a small dip in contribution to $1.67 billion.

camilo.thame@gleanerjm.com