The Health Minister said he was working hard to ensure people with insurance did not have to pay up front when they visited a doctor's office.

Yesterday, three Senators said they were concerned about reports that people who were insured through the Government's Health Insurance Plan (HIP) were having to pay up front for medical services.

Senator Kim Swan said some doctors were requiring patients to pay up front and then fill out paper work to get reimbursed by HIP.

Independent Senator Walywn Hughes said he too was disturbed that people who could not afford it where having to pay before they had medical attention.

Independent Senator Alf Oughto> said he understood that doctors were asking patients to pay up front because they were having to wait a long time to get reimbursed by HIP and could not afford to run their business that way.

Health Minister, Senator Phil Perinchief said he was aware that it was an important issue and working hard to rectify it.

He said: "Claims will be paid within 30 days.

"We will continue to press on the issue because it is important. People come up to me as I walk down the street about this issue."

The issue came up shortly before Senators unanimously passed increases to health insurance premiums The standard premium is applicable to people with private insurance and those in the Government's Health Insurance Plan (HIP). It regulates the maximum rate that people can be charged for a hospital service.

This year the Health Council recommended a 7.5 percent increase in hospital rates and a corresponding 7.5 percent increase in the standard premium rate.

Senator Perinchief pointed out that the increase was actually less than than 16 percent increase the actuary recommended. He said the Health Council considered the 16 percent increase to be too much and instead decided to increase it by 7.5 percent.

The mutual reinsurance premium which funds expensive procedures such as kidney transplants and long-term hospital patients, will also increase by 7.5 percent, or $1.48 a month.

In total health insurance premiums will rise by $12.78 a month.

The Senate also passed an amendment to the Health Insurance act which allows employers to deduct 50 percent of the standard health insurance premium from their employees salary. Another amendment passed ensure that people would be able to avail of new services such as D-dimer tests, C.T Angiography examinations, stereotactic breast biopsies and studies into gastro-esophageal reflux disease.