Health spending dropped 1.7 per cent over the previous year for the fiscal year ending March 31, 2014, the Bermuda Health Council has reported.

That decline coincided with a 0.7 per cent drop in the Island’s population, and an 8.5 per cent rise in healthcare administration expenses.

Announcing the release of the National Health Accounts Report 2015, the BHeC said total spending for that year had dropped marginally to $693 million, or 12.4 per cent of gross domestic product.

Financing was 70 per cent private and 29 per cent public, with health insurance representing 60 per cent of financing sources — and individual out-of-pocket payments representing 10 per cent.

Health spending between the private sector and public sector was split at about half each.

However, jurisdictions ranging from Canada, Britain and Portugal still show a higher life expectancy, despite spending less per capita on health than Bermuda.

Responding in a statement today, the Ministry of Health, Seniors and Environment said it welcomes the report.

“The finding that costs declined slightly from the previous year provides encouragement that some of the control measures implemented are having a positive impact,” stated the ministry.

“Nevertheless, there is still more work to be done and the ministry is working with the Health Council, the Bermuda Hospitals Board and with private and public insurers and providers to continue to find ways to control health costs.

“In 2015, the Standard Health Benefit (SHB) premium was adjusted to modernise the basic benefits package and improve the health of some of the most vulnerable.

“The goal is to create better access to quality care by ensuring people can get ‘the right care, in the right setting, at the right time’.

“Evidence from health systems of other advanced economies has shown that quality, timely care is the most cost effective healthcare and focusing on quality will lead to a more affordable health system.

“This year, several programmes were introduced under the Standard Health Benefit (SHB) premium that should yield further reductions in health expenditure in future years.”

These are:

• an enhanced care pilot to better manage select chronic non-communicable diseases in uninsured and underinsured patients, as a result decreasing the probability of preventable, costly visits to the hospital;

• diversification of Health Insurance Department programmes for HIP and FutureCare that will allow more critical benefits that improve health and reduce costs (such as home healthcare, smoking cessation);

• progression of a modernisation plan of services at the hospital;

Health minister Jeanne Atherden stated: “The green shoots demonstrated in the 2015 National Health Accounts indicate that measures to control utilisation and right-size our health system may be yielding positive results.

“We continue to work hard to identify every possible measure that will control health costs for individuals, families and employers, and we are grateful for the collaboration of private and public healthcare providers, insurers and the public to realise this.

“For now, I believe we are on a better track and many stakeholders are working hard to control costs. We continue to encourage the public to do their part by practicing healthy lifestyles, eating a balanced diet, doing regular physical activity and avoiding smoking, as these simple steps help to keep health costs down for everyone. Unhealthy populations create greater costs for the economy, so it’s more important than ever that Bermuda become as healthy as possible.”

• A full copy of the report is available via the BHeC website, www.bhec.bm.