Private health insurers could jack up premiums for seniors after Government changed the rules on coverage, a charity warned yesterday.

And Age Concern executive director Claudette Fleming said that the changes risked hitting the most vulnerable members of Bermuda society.

Ms Fleming added that most of the changes involved administrative transfers of payment responsibility for some kinds of health conditions from the Government to the insurer — and that they were unlikely to affect seniors with basic levels of insurance like HIP and FutureCare.

She said that older people with health insurance coverage should not be hit the increase in the aged subsidy copay as the increases will be passed on to insurers.

But she added: “However, as a seniors’ advocacy group we are not so naive as to believe that some insurers might not be tempted to raise premium rates as a result of these new changes.

“Subsequently, we urge regulators policymakers and those who are insured to watch this situation closely.”

And Ms Fleming said that an end to the use of Government subsidies for overseas treatment would hit seniors without health insurance.

She added: “The new changes to the Standard Hospital Benefit mean that overseas coverage is no longer available to the uninsured, whereas previously over a third of costs could be covered.”

Ms Fleming was speaking after Health Minister Trevor Moniz announced that subsidies for the Standard Hospital Benefit (SHB) — the minimum cover in any health insurance policy sold in Bermuda — were to be reduced.

Those aged 65-74 will see a ten percent cut in the subsidy to 70 percent, while those aged 75 and over will also get a ten percent decrease to 80 percent.

And SHB portability — overseas coverage — will be abolished, including portability of the subsidy, to save around $9.6 million — part of a health cuts package totalling $17,6 million.

The charity estimates that fewer than 200 people (two percent) of those aged 65 and over fell into the uninsured category.

But Age Concern advocacy Committee Chairman Charles Jeffers said: “It is likely that uninsured seniors represent the most economically vulnerable in our community, although we recognise that there are some who have simply chosen not to be insured.”

And he added: “We urge seniors to ensure that they have insurance coverage and, if they do not, should seek the help of Government’s Financial Assistance programme.”

And Mr Jeffers said that anyone who needed advice on applying for help should contact Age Concern.

Ms Fleming added that statistics showed that the Island’s population was ageing, while the number of people of working age was falling.

And she said it was expected that the number of Bermudians moving elsewhere would increase and the number of people from overseas moving to Bermuda would fall, which meant fewer taxpayers to support the ageing population.

Ms Fleming added: “At the same time, health costs are skyrocketing.”

She said: “Our message to the younger public is to stay as healthy as you can. Prevention is the key, as it will keep healthcare costs down and could result in lower premiums and payouts in the future.

“A second message would be to save and plan your retirement in such a way that you can afford healthcare coverage.”

And she called for the work of the previous Government on a national health plan — set up to deal with coverage, costs and availability of healthcare — to be continued.

Ms Fleming added: “We recognise that the Government felt it had to do something to reduce expenditures and ultimately the deficit.

“However, the fact remains that these changes will affect those most economically vulnerable.

In addition, although these changes will bring some measure of short-term relief to the Government purse, the changes signify a band aid approach to a gaping wound that must be given serious attention.”

Insurance Association of Bermuda president Holly Flook said: “The bottom line is that the removal of overseas portability and its subsidy, reductions to domestic subsidies and movement of Mutual Reinsurance Fund benefits into the Standard Hospital Benefit package still leaves claims expense in the system.

And she added that “these claims need to be paid by someone.”

Ms Flook said: “As long as claims expense remains in the system, health insurance premiums paid by insured persons is needed to fund it — and that is an industry-wide concern.”