SAIPAN — The NMI Settlement Fund is warning retirees that their government-provided health insurance coverage and 25% benefit payments could stop after December 31, 2025, unless new funding is approved.
In a notice dated November 21, the Settlement Fund said Secretary of Finance Tracy Norita informed the Senate Fiscal Affairs Committee that the government health insurance policy with Aetna International Inc. will expire on December 31, 2025. Without a $7.2 million appropriation in the FY 2026 budget to cover retirees’ health insurance premiums, coverage “may not be extended” beyond that date.
According to the release, Gov. David M. Apatang has proposed a revised FY 2026 budget that includes funding for retirees’ health insurance, conditioned on a loan from the NMI Government’s Public Land Trust. However, the Settlement Fund says the revised budget has not yet been approved by the Legislature, and it is unclear when or if lawmakers will act.
The Fund noted that under the Settlement Agreement, the CNMI government is required to provide retirees with the same health insurance benefits offered to full-time government employees. It cautioned that if the government is unable to fully fund a policy covering both retirees and active employees, “there is a real risk that retirees may not have health insurance coverage after December 31, 2025.”
Retirees are being urged to explore other health insurance options and to contact their elected representatives about the situation.
The notice also states that the government has informed the Settlement Fund it does not have funding for the 25% benefit payments beyond December 31, 2025. The Fund said it is continuing to communicate with the government and will keep members updated as more information becomes available.
