Guam court cuts off “continuous” contract

The PacifiCare HMO can stop providing health and dental services to government employees in Guam, according to a decision Monday by the Supreme Court of Guam.  The government had argued that under a decades-old contract requiring “continuous” health care, PacifiCare’s contract renewed automatically every year, so the company could not stop providing services.  The Supreme Court disagreed, allowing the company to terminate coverage.  The government has seen an exodus of companies willing to provide coverage to its employees.