USVI Faces New Financial Challenge if EDC Companies are not Mandated to Provide Employee Healthcare

[TexasTowelie]

USVI FACES NEW FINANCIAL CHALLENGE IF EDC COMPANIES ARE NOT MANDATED TO PROVIDE EMPLOYEE HEALTHCARE COVERAGE


ST. CROIX – One major concern discussed at the Juan F. Luis Hospital (J.F.L.) board meeting on Thursday was the financial impact the territory could face if Economic Development Commission (E.D.C.) companies and their subcontractors are not required to provide their employees with adequate healthcare.

The E.D.C. offers a unique and attractive tax incentive program for companies located in the USVI. It’s a competitive offshore tax benefit program that is sanctioned by the U.S. Government, the Economic Development Authority says on its website about the EDC.

Dr. Olivine Treasure, acting JFL board chair, stressed that in the same way EDC beneficiaries are required to comply with specific benefit guidelines, they and their subcontractors, as well as any group that gets benefits outside of the E.D.C. (in the way that, for example, HOVENSA and the rum facilities have a separate arrangement that is not governed under E.D.C. regulations) should be mandated to provide adequate healthcare coverage for their employees.

Dr. Treasure explained the importance of including this requirement in the E.D.C. benefit package. “First of all in terms of the cost, when doing a contract with a company you explore the benefits and the costs to both parties involved. There is a very subtle cost that is not always obvious, and that is the cost of caring for your employee’s health. If the company does not absorb those cost, by a mandate or agreement, then by default, J.F.L., as a healthcare facility (the emergency room) would absorb the cost. What this comes down to is that the other party in the contract, the Government of the Virgin Islands would be required to absorb it.” If these [E.D.C.] requirements are not put in place, this would negatively impact the hospital and the territory because healthcare dollars are limited, she said.

Read more: https://viconsortium.com/business/usvi-faces-new-financial-challenge-if-edc-companies-are-not-mandated-to-provide-employee-healthcare-coverage/