GOJ owes $mils to Blu X /Blu Shields

[Tuff Gong]

Tue Jun 26, 2007
Govt owes millions in public sector health insurance scheme

State officials are frantically trying to prevent a major disruption of the Government's multi-billion dollar health insurance scheme for public sector workers.

Trade unions have expressed alarm that thousands of Government-paid workers and their dependents could be denied access to the scheme on Tuesday if the Ministry of Finance fails to pay $200 million reportedly owed to Blue Cross Jamaica.

It is a race against time for the Finance Ministry. Unions representing public sector workers say they have been informed that Blue Cross will cease processing claims on Tuesday.

This means that if a debt settlement is not reached in time, Government-paid workers will have to pay up front for services normally covered by the insurance scheme.

The Jamaica Civil Service Association (JCSA), which represents 65,000 public sector employees, says the Finance Ministry is making a last minute bid to clear off the debt.

JCSA President, Wayne Jones, told RJR News Monday night that he was aware of ongoing problems with the settlement of arrears to Blue Cross.

Monday night Blue Cross officials refused to comment on the matter.

State Minister in the Finance Ministry, Fitz Jackson, said every effort will be made to prevent a shutdown of the scheme.

The public health scheme has been at the centre of controversy over the past two weeks since it was revealed that Life of Jamaica is to replace Blue Cross as the service provider.

Although the Government stands to save $100 million under the new contract, trade union officials have expressed anger that they were not consulted before the decision was made to carry out the change.

In the meantime, the National Workers Union (NWU) is calling for an emergency meeting of the Monitoring Committee which oversees the health insurance scheme.

NWU President Vincent Morrison told RJR News that a letter will be sent to Finance Minister Dr. Omar Davies on Tuesday requesting that the meeting be held as soon as possible.

The union is also calling for the intervention of the Prime Minister in the deepening controversy over the selection of Life of Jamaica as the new operator of the health scheme.

NWU Vice-President Granville Valentine has lashed out at the Contractor-General for endorsing the selection process.

“We believe that the Contractor-General has no authority to be making certain pronouncements.”

The union represents more than 8,000 public sector employees.

http://www.radiojamaica.com/news/story.php?category=2&story=37222

[Yuriatin]

Re: GOJ owes $mils to Blu X /Blu Shields

Indeed - read the story this morning.

Maybe they can use some of the money reaped from the so successful ICCWC Cricket to fund the debt?

[Tuff Gong]

Re: GOJ owes $mils to Blu X /Blu Shields

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Yuri_Yuri</div><div class="ubbcode-body">Indeed - read the story this morning.

Maybe they can use some of the money reaped from the so successful ICCWC Cricket to fund the debt?
</div></div>

The real hidden story is the extent to which the GOJ is been aided and abetted by the Civil Servants, The Unions and Local Business concerns in perpetuating fraud on the people of Jamaica.

That is why they cannot go to a competitive bidding arrangement to award these contracts. They owe too much and everyone is in on the scam.

[Sinco01]

Re: GOJ owes $mils to Blu X /Blu Shields

remember JPS was gonna cut off some Police Station & Court House light for non-payment ..

look like govt owe every baddi and dem bredda

[Tuff Gong]

Re: GOJ owes $mils to Blu X /Blu Shields

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sinco01</div><div class="ubbcode-body">remember JPS was gonna cut off some Police Station & Court House light for non-payment ..

look like govt owe every baddi and dem bredda </div></div>

Exactly and the Civil Servants are in the concealment game with the GOJ!

[Tuff Gong]

Re: GOJ owes $mils to Blu X /Blu Shields


EDITORIAL - An unhealthy state of affairs
published: Wednesday | June 27, 2007

THE CURRENT controversy over the public-sector health-insurance scheme is indicative of the country's sick state of affairs at various levels. At its simplest, it points to the precarious state of the country's finances and at another level, to the poor communication among government agencies and bodies.

Amid the contention and confusion over the health scheme benefiting some 67,000 public-service workers, it is important to follow the trail of events which has led to the present situation.

Some 20 years ago, the scheme was initiated and the contract was awarded to Blue Crossof Jamaica. The contract should have come up for review in 1997, but it did not. According to the Contractor General, the Government violated its own policies by allowing the contract to remain with Blue Cross without putting it to competitive tender. Blue Cross continued to supply the service using its short-term investments and bank overdrafts to keep it going. The Government is now reported to owe the scheme some $200 million.

A full 10 years later than the stipulated time for the contract to have been put up for renewal and also to facilitate other interested parties as the rules of contract require, the process is resumed. Blue Cross bids and so does a competing company - Life of Jamaica (LoJ). LoJ is deemed to be the most suitable bidder.

At news of the impending change from Blue Cross, public-sector interest groups go into protest mode. Teachers, nurses, public-sector workers, as well as trade unions, predict dire consequences should the change take place. The Contractor General, never one to mince words, warns against the Government even considering overturning the decision to replace Blue Cross.

Amid reports of the bank's likely terminating its overdraft facility, beneficiaries of the health scheme fear finding themselves devoid of their hard-won benefits. A groundswell of protest begins and continue even now as ministry officials huddle to verify the claim of what is owed. Payment to the bank is promised to avert (yet another) crisis. It was optimistically hoped that the matter would have been settled yesterday. The ongoing drama remains unresolved.

Is this any way for Government to do business? Is there another way by which the current impasse could have been avoided? If so, then why wasn't it used? The public needs to know. Questions raised in the present debacle need to be answered: Why did it take all of 10 years for the contract to be put to tender, as the law requires? Does the new contract with LoJ offer savings and how much? If it is true that the stakeholders - the various public-sector workers - were not apprised of the bid to open the tender to others besides Blue Cross, why not? What would it have taken to avoid the contention and ill-will which has been generated?

As the Ministry of Finance meets with stakeholders today in the continued quest for a resolution, perhaps the most significant question of the day is: Why must Government do business this way? This is sloppy.

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http://www.jamaica-gleaner.com/gleaner/20070627/cleisure/cleisure1.html

[Dr.Dudd]

Re: GOJ owes $mils to Blu X /Blu Shields

This is the usual modus operandi of the government with it's creditors. They Simply stiff them and move on, because they administer the rules.