A 6.4 per cent increase in the standard premium health insurance rate was caused by an increased need for healthcare rather than an increase in fees, the health minister said.

Kim Wilson told the House of Assembly that Government will continue to work to address the root causes of the hike.

Ms Wilson said: “We have been accused of reneging on our promise to contain healthcare costs but I think all informed parties understand very well that the 6.4 per cent rise in the standard premium was due to increased use of services in the previous year. That is utilisation that could not have been prevented by this government.”

She added: “Going forward, we have demonstrated our commitment to containing health costs by not increasing standard benefit fees, in particular for the largest provider, the hospital.

“And, rather, we have undertaken the difficult work to modernise BHB’s fees to be based on an international standard of relative value units with a local conversion factor.”

Ms Wilson said the work was in its final stages and would be brought to the House later this year.

She also gave MPs an update on the ministry’s work over the past year to improve the standards of care homes and daycare facilities through legislation.

She said her ministry had introduced sugar tax legislation after consultation.

Ms Wilson said: “The legislation allows for local producers of food to be exempted from the tax. This means local vendors like bakers, snowball stands and so on, won’t be impacted.

“In fact, local food producers are better off because the new concession can be used to purchase their equipment as well, not just the sugar.

“However, the initiative contributes to the Government’s commitment to incentivise the public to choose healthier options in order to battle Bermuda’s overweight and obesity problem.”

Ms Wilson added the Government had established an obesity and diabetes scheme to tackle habits that lead to chronic diseases. She thanked the previous OBA administration for their efforts to deal with the island’s health problems.

Ms Wilson said: “I want to acknowledge the good work of the previous administration, which established some great initiatives that we are happy to continue, such as the review of the mental health act and the long-term care action plan.

“They also advanced many initiatives that were started under the previous PLP government, such as FutureCare and the Bermuda Health Strategy, which have become central parts of our health system.

“This shows that bipartisan agreement and collaboration serves to achieve the country’s best interest and is an effective way to bring about long-term improvements in health and healthcare for Bermuda.”

Ms Wilson urged the public to be safe and responsible over the Cup Match holiday.

She said: “Without wanting to rain on the parade, I do have to pause and remind us all that drunk driving and sexual indiscretions increase dramatically during any public holiday.

“We relax, overindulge and take risks — risks that can cost us our life. Accidents go up during any public holiday, and visits to the Communicable Disease Clinic go up immediately after such holidays.

“So let us take heed of past experience and celebrate this Emancipation Day by freeing ourselves of thoughtless decisions that hurt us and our families.”

• For the full ministerial statement, click on the PDF under “Related Media”