The Bermuda Health Council has proposed major reforms for private heath insurance companies to ensure adequate coverage for all residents.

Today the council released a public consultation paper examining ways to enhance the regulatory framework of private insurers. The report examined the strengths and weaknesses of how Bermuda finances its health care system.

The proposed reforms include ensuring all companies are solvent and enhancing the standard health benefit package of all insurers. The council also proposed that companies be barred from denying standard health coverage to anyone, regardless of pre-existing conditions.

A major theme of the report was Bermuda’s elderly and the impact they have on the health care industry. Life expectancy has risen from 65 to 79.3 since 1950 and the median age of the population is 40. Meanwhile, unhealthy lifestyles are also adding to the heath care burden. Sixty-four percent of the Island’s population is overweight and 14 percent of the population lives with diabetes. Nearly half of Bermuda’s deaths, 47 percent, are attributed to circulatory system disease.

This has resulted in the cost of health care rising. Currently 9.2 percent of the Island’s gross domestic product is spent on the health care system. That means approximately $560 million is spent a year, based on the 2008 GDP.

This is expected to double in the next seven years. The council estimated $1.04 billion will be spent on the health system by 2017.

To read the full report go to http://www.bhec.bm/resources/reports_pub.html.

For the full story read tomorrow’s Royal Gazette.