Matters in Healthcare: Why has my health insurance gone up?

WEDNESDAY, MAY 2: This week’s Q&A focuses on the hot topic: health insurance and how much it costs. On April 1, 2012 the cost of the minimum health insurance package went up by $19.34 per month. This is due to increases in healthcare costs and greater use of services by insured persons. Below the Bermuda Health Council answers some of your most frequently asked questions (FAQ) on the issue.

Does this affect me?

Yes. The price of the minimum health insurance package is the basis for your health insurance premium.

What is this about?

By law every health insurance plan in Bermuda must include a minimum package called the Standard Hospital Benefit. The price is the Standard Premium Rate.

This includes the basic level of coverage that every employer has to provide, as mandated by the Health Insurance Act 1970.

What is the price of the minimum package?

In 2012 the minimum package will be $271.61.

By law, employers and employees must share this equally. If you are working, your part is $135.81 per month.

How do you get that price?

The price of the Standard Premium Rate is set by the Government.

It is calculated by an independent actuarial review commissioned by the Bermuda Health Council.

The analysis considers the claims experience of all insurance companies and the cost of future provision.

What does the minimum package cover?

The Standard Hospital Benefit covers mandated inpatient and outpatient hospital treatment here and overseas.

Is that the same as HIP?

No. HIP is the Government’s affordable health insurance plan.

It includes the Standard Hospital Benefit plus some additional benefits (though it is less than major medical).

Times are tough, why does the price have to go up?

The increase is due mostly to utilization. It is necessary for Bermuda’s health system to continue to deliver care to the population.

Why does this matter?

The Bermuda Health Council works to ensure our healthcare system is sustainable.

Our role in recommending the Standard Premium Rate is vital and BHeC is committed to fulfilling this function objectively and in the best interest of the country.

Where can I find the actuarial report?

The Actuarial Report may be obtained from the Bermuda Health Council website www.bhec.bm, or you may call with queries on 292-6420.