Brown's concerns over axed health insurance coverage
Transport Minister Dr. Ewart Brown is to meet the Finance Minister tomorrow to press the case of taxi owners who were recently axed from their health scheme.
Canadian Life Assurance wrote to Island Wide Taxi Service saying that group coverage will cease from May 1. Dr. Brown said up to 30 drivers could be affected.
He said: “I intend to press upon Mr. Cox that this is an example of the insurance industry making precipitous judgements to withdraw coverage and I suspect it's even more insensitive by the fact that these gentlemen are at an age where it's very difficult to get insurance.
“That's why they pay their premiums when they are healthy so they get coverage when they might not be.
“I am concerned it might be the beginning of a trend. Whenever an insurance company sees someone or a group over 65 they might simply refuse to renew the policy.
“That's a dangerous precedent. It's time for the Minister of Finance to hear these taxi owners on this issue.”
He said the Minister of Finance was the only minister to whom the insurance industry was accountable and under the Hospital Insurance Act he could investigate whether a company was acting in the public interest.
He said: “I am not going to pre-empt what his response will be in this incidence but the matter needs to be investigated as to whether this insurance company is acting in the public interest.
“Government has an obligation to step in and check it out.”
Dr. Brown stressed that the company might have legitimate reasons for dropping the taxi drivers but it needed to be look at.
Asked about Mr. Cox's powers under the act Dr. Brown said: “He can review the licence I suppose, he can talk with them.
“I don't want to get into what the minister might or can do. But it's alarming, it should not be ignored. I have seen other incidences of this where people are suddenly cut from health insurance. I think it does not bode well for the country in general when this kind of thing can happen to various sectors in the community.”
He said the over 65s often had no option but to buy a very expensive insurance on their own when their job finished.
Gordon Flood of Island Wide Taxi Service said drivers who had lost cover from Canadian Life Assurance were looking to find other companies.
He said: “But if a driver is known to be sick no other company will want him. He's paid in all his life for this reason, to get coverage when he needs it, then they drop him. That can be hard.”
Mr. Flood welcomed the fact that Dr. Brown was pressing their case but he was angry Canadian Life had dropped the drivers without even negotiating.
He said: “They didn't offer to increase our policies or anything, that's what really upset us.”
“Some of the older drivers are receiving benefit but in a month or so they won't be able to have it.
“We don't know where we stand legally. We have approached a couple of insurance companies to see what they can come up with.
“Also we wonder whether individuals can force companies to continue their policies.”
