that used to be met by Government.

The trend is one of the reasons for a forthcoming rise of around 20 percent in premiums, say insurers.

The Health Insurance Association of Bermuda says its member companies seem to be increasingly picking up the tab for benefits that were previously sponsored by Government.

The trend is adding to companies' alarm over rising health costs. HIAB president Ms Judy Panchaud, of BF&M, said hospital bosses were trying to make up for recent freezes in Government grants.

"The hospital is providing a service and they need the revenue coming in to provide that service.

"If they're getting squeezed in one area, which has been the Government, the next major source is the insurance companies.'' Some out-patients who previously got prescriptions from the hospital free, or at cost price, may soon have to go to pharmacies, she said. This would mean insurance footing the bill.

The hospital may also be subsidising in-patient care by over-charging for out-patient treatments, she said.

Hospitals board executive director Mr. Hume Martin said there was some truth in the insurers' claim, but denied it was a "significant trend''.

"Now we're being a little more efficient in charging for those things we should be charging for.

"Our in-patient rate is artificially low and we keep asking for an increase from Government, but Government denies us that in the interests of keeping down costs.

"I don't feel that our out-patient charges are artificially high. I would dispute the notion that there's a conscious effort to subsidise the in-patient beds by out-patient charges.

"I think we're doing what we should be doing. When Government freezes subsidies we look at other ways of increasing revenue.

"What are insurance companies there for?'' he asked. "Do premiums go up or do taxes go up? "We're being responsible. If we incur a cost we try to charge it.''