A $20 million increase in health spending failed to deliver a healthier Bermuda, it was feared yesterday.

The 2018 National Health Accounts Report showed the total public and private expenditure neared $723 million in 2016-17.

Bermuda was third behind only the United States and Switzerland in a list of Organisation for Economic Co-operation and Development countries when compared by health spending as a percentage of GDP.

However, the $7,220 outlay per person resulted in a life expectancy at birth of 81.3 — lower than several other countries that spent less.

The report noted: “Bermuda falls below the trend for health expenditure and life expectancy which suggests we are spending more without achieving greater health outcomes.

“This is further supported when we compare Bermuda to other jurisdictions of similar affluence [per capita GDP] such as Norway, where health expenditure is less but life expectancy is higher.

“Switzerland, also of similar affluence, has a higher per capita health expenditure but also has a longer life expectancy.”

Data published on the BHeC website showed the OECD average spend for the fiscal year ending March 31, 2017, was $3,996 per person and average life expectancy was 80.5.

Expenditure per head in Norway was found to be $6,647 but, at birth, people there can expect to live to 82.4.

In Switzerland, the health cost for each person was $7,919 but their life expectancy was 83.

The report found Bermuda’s health spend was 11.5 per cent as a share of its GDP, behind only Switzerland at 12.4 per cent and the US at 17.2 per cent. The OECD average was 9.08 per cent.

Tiara Carlington, a BHeC policy analyst for data and research, said yesterday: “This report provides us with a basis for looking at the bigger picture of how policy decisions can affect our health system’s success.

“Looking at the findings of these reports over time, it is clear that we have to move away from the expectation that more expensive care means better care.

“Instead, we need to be more sensible about how we spend and align our spending with our system’s long-term goals — once we make that change we can begin to expect more.”

The National Health Accounts Report identified trends in the health system finances and looked at how the island compared to other jurisdictions.

The BHeC said in a statement: “As has been the general year-over-year trajectory, total health financing and expenditure increased.

“This increase of $20 million in spending represents a 2.26 per cent uptick, which supports what is expected as the population ages and our communities learn more effective ways to prevent and manage the existing burden of chronic disease.”

The BHeC said there was a small change in the typical distribution of financing, with a drop in health insurance as a portion of funds overall and a rise in out-of-pocket payments.

It added: “To better understand the cause of this shift, and its impact on the sustainability of the health system and individuals’ access to care, we are moving towards greater enforcement of the Claims Regulations’ legislation.

“The existing legislative requirement supports provider reporting of their full charges for health products and services including the insurance covered portion and the total out-of-pocket co-payment.”

Ricky Brathwaite, the BHeC’s acting chief executive and director of health economics, said: “This report also demonstrates an important opportunity for Bermuda’s overall financial flexibility.

“We must seek to create initiatives to encourage economic growth while simultaneously working diligently on reducing health expenditure.”

Kim Wilson, the health minister, welcomed the report yesterday and described it as “essential data and analysis”.

She said: “The trends reported are helping to inform policy decisions about how to address healthcare costs for the public and employers, and it provides vital insights into the health financing problems to guide and inform solutions.”

Ms Wilson said the ministry continued to assess feedback from stakeholders who reviewed two health insurance models last year after they were first mooted in 2012.

She added: “We will be in a position to share next steps in the coming months.”

Patricia Gordon-Pamplin, the One Bermuda Alliance’s shadow health minister, said yesterday: “This government can talk all it likes about different insurance systems, but unless, or until, it is prepared to take some tough decisions, until there is better control of what is used and how often, until we are able to get more people on the island to spread the cost of healthcare, the reality is that costs will just continue to rise.

“It should really alarm people that healthcare costs for a community the size of a small US town are forecast to reach $1 billion.”