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Health spending levels out — report

Health costs have levelled off for the first time this decade, the Bermuda Health Council has revealed.

The curb in health spending was attributed to a cap in previous years on payments to the hospital, according to the Council’s Annual Report 2013-14.

Reduced spending on programmes and services by the Ministry of Health and Environment also contributed.

Bermuda’s total health spending for the fiscal year 2012 was $678 million — $10,562 per capita.

But while the flattening of spending is positive, the report highlights that the cost of goods and services continued to rise, resulting in health costs representing a larger proportion of Bermuda’s GDP.

In a statement at the start of the report, Jennifer Attride-Stirling, the Council’s chief executive officer, said: “The most significant milestone this year was the National Health Accounts finding that health costs flattened in 2011/12. This was the result of a number of factors and prior years’ actions, which bore fruit in the latest year measured.

“Nevertheless, the actual cost of goods and services continued to rise, resulting in health costs taking up a larger share of GDP and of many people’s income — particularly for the most disadvantaged socio-economic groups.

“We must continue to implement measures to ensure health costs are affordable for individuals, families, businesses and the Government. It is imperative that such measures be based on the best available evidence, for the benefit of patients and the public.”

Curbing health costs has been a priority for the Council since 2010.

It was tasked last year with implementing pre-certification to reduce medically unnecessary diagnostic tests, and is currently producing guidelines for this process on behalf of the Ministry of Health and Environment.

The report also highlights efforts to monitor and crack down on employers who were not complying with regulations on paying health insurance coverage.

The number of inactive policies and affected employees fell over the last fiscal year, although two cases were referred to the courts.

The Health Council also stated it is receiving an increasing number of complaints and queries about the health system, with most complaints — 42 percent — in 2013-14 focusing on employers’ health insurance, followed by costs, fees and billing (28 percent).

Most queries (31 percent) were about costs, fees and billing, followed by questions about the quality of care (17 percent).