All but one insurance provider files protest

Three out of the four health insurance companies that responded to the Government of Guam's Fiscal Year 2013 health insurance RFP have now filed a protest.

August 24, 2012Updated: August 24, 2012
KUAM NewsBy KUAM News

by Ken Quintanilla

Guam - The Government of Guam negotiating team has yet another protest in front of them as less than two days after Calvo's Selectcare filed its protest, Staywell has followed suit contending prejudicial treatment and violation of procurement law. Three out of the four health insurance companies that responded to the Government of Guam's Fiscal Year 2013 health insurance RFP have now filed a protest.

"After reviewing first the TakeCare protest and then the subsequent protest by SelectCare, we felt that it was in the best interest of IHIC and Staywell to go ahead and proceed with the protest based on our findings," said Staywell associate administrator Francis Santos. Island Home Insurance Company, the underwriter for Staywell Guam, filed its protest late Thursday because just as Calvo's Selectcare did earlier this week, contends that Takecare Insurance and offerer number three were allowed to modify their proposals after the process was closed. Selectcare says they only knew this occurred after takecare published its protest online.

Staywell meanwhile alleges that Takecare was the only offeror privy to what was supposed to be a confidential evaluation. "So I think to protect the protest rights of our company, it was the proper way to do it within the rules and procedures of the protest in GovGuam procurement rules," Santos added.

Govguam's health insurance negotiations were stayed as a result of   the first protest filed by Takecare Insurance earlier this month. Takecare alleged that the Department of Administration and the health insurance negotiating team acted in such a way to discriminate against the company. According to the protest the company was invited to negotiations but then later uninvited.

Santos adds there are obviously issues with the whole health insurance negotiating process, stating, "And I think in the end it's not what the GovGuam employee wants. I mean, they're looking for better rates and better coverage, and that's what we're Staywell are here to do."

Ultimately, Santos says because Staywell wasn't notified of any irregularity on the company's part, it led them to believe its bid was compliant and leaves him questioning why two other bidders were brought back in. Staywell has since requested DOA issue a decision saying its actions were prejudicial to the other offerers and that its decision to continue negotiations with nonresponsive offerers was in violation of procurement law.

He explained, "I think it's in the best interest of the government to try to arrive at a conclusion quickly. I would hope that we can all get at the table and say what can we do to speed this process up?"

Govguam's current health insurance contract expires at the end of September.