Retired hospital workers are reeling after being hit with 34 percent hike in their monthly health premiums.

The rise, which compares with an average premium rise of between 10 and 20 percent this year, was a bid to catch up after last year's premiums were set too low said Argus CEO Gerald Simons.

One pensioner told The Royal Gazette she would be forced to economise to make up for the rise which started this month.

She said: "There was no warning, it increases every year but we didn't see it going up that high. Everyone is really upset.

"It's not fair for senior citizens."

The former nurse said her premium has risen from $143 a month to $195 and that retirees had been told by an Argus representative last week it was because they were using services much more than others in the scheme.

She said former health workers knew the importance of getting tested in order to nip problems in the bud.

"It's more preventative medicine so I don't need to be in the hospital for two years.

"You should not penalise me for using the system. I think for retirees they should make it lower."

The ex-nurse said the premium didn't even cover all her health expenses and that she recently had to fork out 80 percent of the costs of her physiotherapy while the premium only covered 80 percent of the costs of her prescription drugs.

"We used to have dental and optical cover but now we are charged for maternity cover. Christ, I am 71-year-old! Children?

"I am fed up with the whole thing. That's $600 a year."

The pensioner also queried how many of her peers would need to use the substance abuse and rehabilitation services for which they were charged.

Mr. Simons said: "It's not uncommon in group plans for people to use some benefits and not others."

And he said the 34 percent rise was necessary.

"The premium set in the past was not quite meeting claims. It was set too low. There is no magic to it."

He said although it might seem a huge percentage increase the actual monthly premium was quite reasonable compared to that paid by others.

Asked why health premiums were rising Islandwide Mr. Simons cited greater awareness of health issues leading to greater use of services, newer and more expensive drugs, an ageing population and increased technology.

The new fee schedule set by doctors had also led to rising health care costs said Mr. Simons.

An angry health insurance claimant chained herself to a desk at the Argus HQ yesterday.

The woman was in an interview room talking over her claim when she took matters into her own hands.

Mr. Simons said the woman left one or two hours later of her own accord.

"Sickness and illness can cause stress."

Mr. Simons said it was the first time staff had dealt with such a problem and the claim would be worked on in the next few days.