premiums.

MPs approved the The Hospital Insurance (Standard Premiums) Regulations 1997 on Monday night. The legislation established a 5.9 percent increase in the standard premium rate to $80.30 a month with effect from April 1 and follows the five percent increase in hospital fees.

A portion of the standard premium goes towards the Mutual Reinsurance Fund, (MRF) paid by all insurers. That transfer will also be increased by 13.9 percent to $9 a month.

Finance Minister Grant Gibbons said the latter increase was above the rate of inflation -- but that it had been recommended by the fund actuary in order to stabilise the fund balance, which had been intentionally reduced in recent years to return the MRF to an optimal break-even point.

The MRF covers the cost of expensive treatment including dialysis treatment and kidney transplants.

A small portion of the MRF premium -- $1.20 is paid to the Hospital Insurance Plan to assist in the coverage of high-risk clients insured under it.

People older than 65 who live in Bermuda and who do not qualify for subsidised hospital care also face increases in premiums -- from $279.50 a month to $294.20.