June 17, 2002 – There are some changes afoot in government workers' life insurance and accidental death and dismemberment policies. After taking testimony on Monday as the Committee of the Whole, the Senate will vote on the matter Friday when it meets in full session.
For starters, the government will contract with Metropolitan Life Insurance Co. instead of Aetna Insurance Co. for the policies. The Aetna policy expires June 30. And workers will have the option to buy additional coverage valued at one, two, three, and four times their annual salary instead of just the maximum $75,000 now available. However, the new salary multiples have a cap of $400,000.
"You'll need to have a public relations or education program," Sen. Lorraine Berry suggested as the senators discussed the new plan.
The plan goes into effect July 1. It is renewable for three years with the rate guaranteed.
The government pays for the basic life insurance plan, which is valued at $10,000 for employees and $5,000 for retirees.
The Metropolitan Life plan will cost the government $661,283 a year, a savings of $33,790 a year over the Aetna plan.
Paulette Rabsatt, chairman of the Government Health Insurance Board, said the savings comes because rates are based on the employee and retirees ages instead of a composite of all ages. The younger the employee, the lower the payment. With a large number of youthful employees the V.I. government benefitted from the rate formulas.
She said while the board asked for proposals that included the additional optional coverage, Aetna could not comply with that provision because it was not in a financial position to do so.
Metropolitan Life will provide a worksheet so employees and retirees can calculate how much life insurance they need.
"We want informed employees and retirees," Jeff Trinkwon, Metropolitan's regional manager, said.
While some senators said they hoped for a more generous plan, including removal of the $400,000 cap, Rabsatt said this was the best of what the life insurance market had to offer.
"We went with what gave us the most bang for our buck," she said.
Trinkwon said that while other locales have plans that pay several million dollars in optional life insurance payments, he said that those were places where employees earned several hundred thousand dollars a year. Salaries at this level are a rarity in the Virgin Islands.
A provision effective in all government insurance policies that limits coverage for dependents between age 19 and 25 to full-time students also came under fire.
Sen. Norman Jn Baptiste said his daughter was fully dependent on him, but only a part time student because the University of the Virgin Islands didn't offer all the courses she needed. Under the government insurance plans, she is not covered.
"I want to extend the age to 21 the next time you negotiate," Jn Baptiste urged.
Trinkwon also came under fire for perceived problems with Metropolitan Life's dental coverage for government workers.
Sen. Adelbert M. Bryan complained that the company had supplied only paper temporary cards.
However, Trinkwon said plastic cards are on the way and should arrive within the month.
Rabsatt said no cards will be issued for life insurance.
All Senators were in attendance except Sen. Alicia "Chucky" Hansen, who was excused.
