$50 mandatory medical insurance for Guam-bound tourists proposed

Haidee Eugenio Gilbert | Pacific Daily News

Show Caption Hide Caption How a bill becomes Guam law Bills lawmakers author and introduce go through a series of steps at the Guam Legislature before becoming a law.

Visiting Guam could cost tourists $50 more if a new bill introduced on Tuesday becomes law, but the proposed fee automatically gives each tourist medical insurance while on island.

For those transiting through Guam, the fee is $20.

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Residents and returning residents of Guam and the Commonwealth of the Northern Mariana Islands who are U.S. citizens or U.S. passport holders, as well as military card holders on orders and their dependents are exempt from the proposed fee.

Medical travel insurance for every visitor

Sens. Wil Castro and Joe San Agustin introduced Bill 333 which, if signed into law, would require mandatory purchase of medical travel insurance for every visitor and at the same time generate up to $78 million a year that would be used for health and public safety programs, among other things.

"It's a win-win. Passengers visiting Guam get coverage for any medical emergencies or visits to the doctor and the people of Guam will directly benefit from net revenues," said Castro, the bill's main sponsor.

The bill, which seeks to create the Guam Guardian Tourist Enhancement Program, could also boost the island's image as a safe destination and ensures that medical care provided to visitors is paid for in full, Castro and San Agustin said.

The fee would also help Guam Memorial Hospital, which provides medical care regardless of one's ability to pay and that such care is also extended to foreign visitors regardless of their ability to pay, the bill authors say.

Up to $78M annual revenue

Castro and San Agustin said the bill, if enacted, could generate up to $78 million a year without taxing Guam residents and local businesses.

Of the total annual projected revenue, some $75 million would come from some 1.5 million Guam-bound tourists and $3 million from the estimated 150,000 transiting through the island.

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"This guarantees that people coming to Guam — tourists or other transients — pay their medical bills, have catastrophic coverage, and provides in upwards of $75 million of new money that does not burden the people of Guam," San Agustin, chairman of the committee on education, finance and taxation, said in a statement.

The government of Guam is trying to address an estimated $140 million revenue shortfall for fiscal 2019 as a result of the federal tax reform.

As of Tuesday, the proposal is not being offered as part of the fiscal 2019 budget bill that's under discussion, because the proposed fee has not been publicly heard yet, Castro said.

Similar to other travel fee programs

The concept behind the proposed Guam Guardian Travel Enhancement Program is similar to that of the Palau’s Pristine Paradise Fee, Japan’s Sayonara levy and Taiwan’s departure tax, according to Castro and San Agustin, who are both seeking reelection.

The proposed fee covers the cost of medical travel insurance.

The remaining portions of the fee would be allocated as follows: 25 percent for GMH; 25 percent for law enforcement agencies such as Guam Police Department and Guam Customs and Quarantine Agency; and 15 percent to the Department of Parks and Recreation.

15 percent goes to the Mayors' Council of Guam; 10 percent to the Guam Guardian Travel Enhancement Program reserve fund; and 10 percent to the Department of Administration to administer the program.

Insurance contractor

The Department of Administration, through procurement process, will appoint a qualified Guam insurance entity to implement the program and provide group travel insurance policy.

The contract would be for a minimum of five years with the option to renew in five-year increments, the bill states.

Under the bill, the procurement process shall be initiated no later than 90 days after enactment.

The program fee implementation starts 90 days after the award of contract to an insurance provider.

Gov. Eddie Calvo said in a statement that he will sign the bill into law if it passes and thanked the bill's authors for offering a solution to address general fund shortfall caused by the new federal tax policy.

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Reporter Haidee Eugenio covers Guam's Catholic church issues, education, government, business and more. Follow her on Twitter @haidee_eugenio. Follow Pacific Daily News on Facebook/GuamPDN and Instagram @guampdn.