Permanent Health Secretary Warren Jones has defended the increase in benefits for kidney transplants on the Government's Health Insurance Plan.

Last week the Health Minister Nelson Bascome announced the Government's Health Insurance Plan (HIP) would add $70,000 to the $30,000 already allocated towards kidney transplants by the Mutual Reinsurance Fund (MRF) for their clients.

But the increase still falls $50,000 short of the $150,000 needed for a transplant, which the Ombudsman highlighted as a problem in her report released this year.

Permanent Health Secretary Warren Jones, in response to questions from this paper said HIP was never meant to be a major medical insurance plan, but the increase was still an improvement.

He said: "The new benefit sees the HIP Plan adding $70,000 to the MRF payment for a total payment of $100,000.

"This represents a significant improvement and yes, the beneficiary will have to pay something but that amount is significantly less than what was the expectation.

"HIP also will enter into an agreement with a few overseas service providers to establish a fixed total fee for kidney transplants."

But Shadow Health Minister Louise Jackson said the increase amounted to "poor planning" because the amount did not reach the necessary amount taxpayers may still have to fork out $150,000 each year in dialysis rather than one time for a transplant.

She said: "It costs 150,000 a year to treat a patient on dialysis so surely it's in the authorities interest to change the system and pay that once for a transplant.

"It only makes good sense. What they have done is very poor planning. It's going to cost more than $100,000.

"The increase really makes no sense at all."

But as the Ombudsman pointed out in her report that HIP annually covered dialysis up to $150,000 — the same amount as a transplant.

The Ombudsman had been approached by five complainants with end-stage renal disease who could not get a kidney transplant because in order to be added to the US waiting list agency they had to show they could pay for the procedure.

Previously HIP through the MRD only covered $30,000 of the kidney transplants, which actually cost $150,000.

The report added that: "Current research confirms that transplants are a more effective treatment than daily dialysis as patients can resume a relatively normal quality of life.

"In addition, there are likely to be considerable cost savings for the healthcare system as a whole. The Ombudsman held discussions with the Department of Social Insurance, the new Health Council and its Health Insurance Committee.

"Until a comprehensive mechanism is devised, patients should approach the Health Insurance Committee for consideration (on an ad hoc basis) of payment for the best treatment for which they are eligible.

"The Ombudsman has requested an update on this matter."

Mr. Jones added that what should be concentrated on is the fact that HIP benefits have been increased with no additional expense to the clients.

He added: "What must not be lost in all of this is that all of the new benefits added to HIP have been added with no increase in premiums for HIP clients.

"Therefore, for the same premium, clients are receiving additional access to healthcare.

"We determined that the fund could support an increase of approximately $2 million in additional benefits.

"This was our benchmark in determining the extent of the increases that could be added to HIP.

"As noted by the Ombudsman, patients can still approach the Bermuda Health Council for consideration where circumstances require it."