Jeanne Atherden, the Minister of Health, Seniors and Environment, and the Bermuda Health Council have defended the decision to increase health premiums after groups expressed a series of concerns.

While a group of organisations have called for the Bermuda Government to halt the proposed rate increase, Ms Atherden said the move was necessary to curb the impact on the consolidated fund.

“We try to strike a balance between keeping the Government’s insurance plans sustainable in the long term and working with seniors or those most affected by premium increases,” she said. “The message from Age Concern and our other community partners is one we take very seriously. My aim will be to meet with them as they have requested and as soon as possible.”

The statement also noted that the Government subsidises health coverage for seniors and HIP (Health Insurance Plan) in excess of $100 million annually, but that sum still does not cover the cost of providing services.

Meanwhile, the health council said that the Standard Health Benefit (SHB) — the basic health insurance package — is determined through an independent analysis of services used.

“The SHB ensures that most hospital services and some other benefits are covered for every insured person in Bermuda,” the statement said. “The premium for the SHB is determined through an independent actuarial analysis of all health insurance claims made by Bermuda’s adult and senior population.

“The analysis looks at the amount of services used, their fees, any new services added and transfers to access programmes. This total cost is divided by Bermuda’s insured adult and senior population, which produces the premium amount.”

The statement noted that the annual review is published online every year on the health council’s website (www.bhec.bm), along with a brief explanation of the premium and standard health benefit changes every year.

“Premium changes are derived with careful consideration of the cost of paying for the services used, and the impact to policy holders,” the statement continued. “Every action is taken to minimise the premium adjustments each year. For example, coverage of the professional fees that some people, particularly seniors, had to pay out of pocket was added to the premium to protect persons on the lowest-cost plans.

“In the context of increased use of services, essential benefit additions and a smaller population size, it was not possible to sustain the premium at current levels.”

The statement urged interested members of the public to read the National Health Accounts reports, adding: “These reports show that the Government subsidises health coverage for seniors and indigent in excess of $100 million per year.

“Providing services for these populations exceeds this amount, so it is necessary to supplement it with premium contributions. This is in an effort to share the cost with the beneficiaries and curtail the impact on the consolidated fund.”

A host of charities, including Age Concern Bermuda, the InterAgency Committee for Children and Families, the Centre on Philanthropy and Bermuda Cancer and Health Centre, voiced complaints on Monday about a series of healthcare changes, calling on the Government to halt changes to healthcare provisions and coverage until there has been “substantive community input”.

Nadine Lapsley Dyer, programme co-ordinator at the InterAgency Committee for Children and Families, said the changes were particularly concerning because of the economic climate, noting the average annual household expenditure increased by 18 per cent from 2004 to 2013.

“We have been made aware that as of July 1, there will be an increase in private sector insurance premiums,” she said on Monday. “The Mutual Reinsurance Fund (MRF) tax has increased from $29.18 per insured per month in 2014-15 to $63.74 per insured per month in 2015-16.

“The MRF is a mandatory tax that is collected on health insurance premiums and paid to Government. The SHB premium has increased from $301.85 in 2014-15 to $338.07 in 2015-16 — an overall increase of 12 per cent inclusive of the government tax.”