Costs for medevac or air ambulance service to a US city have skyrocketed by more than 60 per cent, catching a local service provider off guard. And the Moongate Group, which offers a variety of services, including through MoonGate Health, has also faced a recent “challenging” loss experience.

As a result, the company has served notice it will raise the monthly price of its HealthGap Insurance Supplement more than 19 per cent from $105 to $125 in the new year.

A letter to clients from Leon Bascome, the group chief executive, said: “During our existence, we have made one adjustment to the rate for the emergency transportation portion of your premium; this was in 2021.

“Unfortunately, due to a number of industry factors, our overseas partners have [again] experienced unprecedented cost increases.

“I recently inquired about pricing for a patient [Boston/Bermuda] and what was customarily around $28,000 came in at $45,000. This makes it very difficult for us not to make an adjustment.”

When contacted, Mr Bascome said: “Bermuda has endured a loss experience which is challenging in many healthcare service areas; our service area is not immune.

“What we are witnessing is an increase in both frequency and severity of claims and costs sustained. We have fought very hard to provide continuity in pricing: our last increase was actually five years ago, after Covid.

“Our per month increase starting January will be $20 which is the equivalent of $4 per year over the last five years. I deemed it necessary and even respectful for MoonGate to inform its clients early, so that they could budget and make any necessary adjustments.”

He said: “It is important to clarify that MoonGate is not an insurer under the Act but provides ancillary services in the healthcare space to plans such as Standard Health Benefit, Health Insurance Plan and FutureCare.

“We are in our fourteenth year of operations and continue to welcome those who have questions; we encourage our seniors to have a family member accompany them to ensure they understand what is being purchased and how our products/services work.”

MoonGate Evacuation Services helps facilitate emergency medical transportation as the exclusive agent for Bermuda and protects clients from the catastrophic financial loss of having to suddenly foot the bill of an air ambulance service, the group’s website said.

Clients have full cover for any medical transportation emergency. There is a 90-day stipulation for pre-existing conditions; otherwise it is immediate full coverage.

Mr Bascome also pointed out: “Predominantly, MoonGate collects the premium on behalf of a provider who coordinates air ambulance services.

“Our clients are deemed as having ‘prepaid’ their fights, in the unfortunate event it requires use. That is for the air ambulance.

“Other aspects of our HealthGap package includes discounts on a plethora of healthcare services outside of hospitals.”

He added: “MoonGate is a very unique company in the fact that the vast majority of time, we liaise as brokers for the prepaid, financial transactions; other times, like today we are asked to arrange the flights on behalf of local residents even if they are not clients of ours.

“There are a number of air ambulances [flight operators] which serve the island: similar to primary insurers, MoonGate and its partners use a network — including the vastly important folk at KEMH — and employ particular processes to provide care for loved ones.”

HealthGap includes a complimentary card offering prescription and medical savings —up to 80 per cent on US prescriptions.

It also reduces non-hospital copays with vendors that include doctors, dentists, optometrists, pharmacists and many others who provide healthcare services at discount rates.

A company website said the group provides the HealthGap Supplement to complement the basic health insurance plans of Health Insurance Plan and FutureCare.

Mr Bascome’s letter to clients added: “We do pride ourselves on the fact that we were able to keep the previous adjustment stable for five years. We will do our best to maintain this type of track record of stable pricing.

“Your MoonGate team understands the challenges we all face in Bermuda; it hasn’t been easy for [any] of us. We thank you in advance for your understanding as we endeavour to support and continue to be here for you, as well.”