Health insurance is the Government of Guam's single-largest contract every year. And a bill to provide employees with more choice in the matter was the focus of lengthy debate at today's legislative session.

The measure, by Senator Jose "Pedo" Terlaje, would allow the governor to sign contracts with two health insurance providers, instead of the current single company. Terlaje and others said they've gotten numerous complaints about the current and first-time contract winner Aetna International. But that's not the only reason Terlaje says he introduced the bill.

"In difficult economic times like this we need our taxpayer dollars to circulate in our economy instead of being exported off-island. The overall economic impact of the health insurance choice should be examined, including the positive economic impact multiplier of local choice. Buying local means local jobs, which support our families here on the island," explained the freshman policymaker.

Department of Administration director Ed Birn fielded questions at the morning session noting that the current mandate of his contract negotiating team is to seek the lowest cost carrier. But Senator Joe San Agustin said he supports opening it up to all carriers, setting minimum coverage levels, and letting employees decide if they want to pay the difference for added service.

"Would that be just as easy, because it doesn't matter which insurance you go to, when they file the claim and Gov Guam has to pay, because that what they signed up, you only pay the set amount and the different class of services provided would be standard across the board through all insurance," he said, Birn replies, "Yeah, it's only a matter of the contribution. You're correct. And it would be a different contribution. It's like buying up, and that could work."

And Birn says he supports yet another option in the bill, which allows the government to insure itself and contract for a third party administrator to handle claims.

"I certainly feel that the Government of Guam can get some advantage from being self-funded with certain safeguards like a stop loss," he said. "And that's one of the things we're having to look at."