Software to electronically process Government's health insurance claims should prevent backlogs that have been as long as two years, Minister of Health Michael Scott said yesterday.

But he admitted that such a system should have been put in place sooner.

Earlier this year, former Acting Minister of Health Sen. Phillip Perinchief hired more staff to deal with claims backlogs of as much as two years that had forced doctors to demand upfront payment from patients.

Mr. Scott said: "Automation is an effort to move to support HIP claims and help manage tedious codes and claims. It should have been with us much earlier than now, but hopefully it will confidence to the doctors of the system and comfort them that claims will be coordinated."

Since May the Government's Information Technology Office (ITO) has requested proposals for software to implement the claims automation for the Department of Social Insurance.

The closing date was originally scheduled for July 6, however, the deadline for proposals was extended until the end of this month.

Permanent Secretary of Health Warren Jones, however, said the extension would not lead to a delay in processing claims electronically which should be in place in 2008.

In the request for proposals, the ITO states that of the 4,500 health insurance policies that they administer, they receive 135,000 claims a year. Manual processing of these requests has led to a lack of claims history necessary to oversee their health insurance product.

Shadow Health Minister Louise Jackson yesterday criticised the failure to implement electronic processing sooner, considering at least 300 more patients from the former medical clinic may be added this year.

"Of course this automation is important. ... Many, many Bermudians did not go to doctors because they can't afford the HIP payment and the up-front payment," she added.

"But it was all a matter of what the Government thinks is important for the people of Bermuda."