Guam officials demand stricter enforcement of prompt payment laws for healthcare

The 38th Guam Legislature convened on May 5, 2025, for a budget hearing focused on the fiscal year 2026 budget, addressing critical issues surrounding healthcare funding and insurance payment enforcement.

The meeting began with discussions on the enforcement of existing laws requiring insurance companies to pay for medical services rendered. A key concern raised was the lack of compliance from insurance providers, which has resulted in significant unpaid bills, particularly for patients without insurance or those from the Department of Corrections. Legislators emphasized the need for a law that enforces prompt payment, suggesting that if Guam Memorial Hospital (GMH) could manage billing independently, it would reduce the need for government appropriations.

One legislator proposed that GMH should take legal action against insurance companies that fail to comply with payment regulations. This suggestion highlighted the frustration with the current system, where government subsidies are necessary due to inadequate premium collection and management of healthcare services.

Further discussions pointed out that government agencies utilizing GMH's services must find internal funding to cover their debts. Legislators noted that the governor's office has the authority to facilitate these payments, ensuring that essential healthcare services are not disrupted due to financial constraints.

The meeting concluded with a consensus on the need for improved enforcement of payment laws and better management of healthcare funding to support GMH and its operations effectively. The discussions underscored the ongoing challenges faced by the healthcare system in Guam and the legislative body's commitment to addressing these issues in the upcoming budget.