Government's plans to introduce new legislation which will extend its powers to suspend and revoke an insurance company's licence has been welcomed by doctors.

But a joint statement from Bermuda Medical Society (BMS) president Jonathan Murray and Steven Trott, the president of the Bermuda Medical Association said that Government should not have the final say on fees for medical services.

President of the Health Insurance Association of Bermuda (HIAB) Gerald Simons said he was not too bothered by the measures but he would prefer that issues between doctors and insurers be resolved without Government intervention.

The measures were announced in yesterday's Throne Speech.

Governor Sir John Vereker said that the Hospitals Board Act 1970 will be amended during the parliamentary year to allow the Government to "intervene for the benefit of patients and impact on the fees that can be charged for the treatment of patients in the hospital". The measures had become necessary as a result of a long running row between doctors and insurers.

Doctors and insurers had been unable to agree on a new fees schedule for medical services and last month the Bermuda Medical Society announced that patients would be billed directly for their services. But insurers managed to get the courts to issue an injunction preventing doctors from billing their patients directly.

The impasse led to speculation that parliament may have to pass laws giving Government power to set fees.

"We fully support the Government's decision to amend the Hospital Insurance Act 1970 so that they can suspend or revoke the licence of an insurance company that fails to reimburse a doctor or dentist for work they have performed," the statement read. "Insurance companies that have taken medical insurance premiums from customers need to be responsible and reimburse the medical community for the work it performs in good faith. At the moment there is no recourse for doctors and dentists who do not get paid by the insurance companies, despite the fact that many of their customers have been paying them in case they need medical attention.

"However, it would be regrettable if the Government decides to set the doctors' fees for hospital procedures. The Government does not set other professionals' fees and we do not expect them to begin setting the doctors fees."

It went on to say that talks with insurers over the fee schedule had resumed. Mr. Simons said that Government always had the power to regulate his industry and that insurers could always be sued if they don't honour their contracts.

"The Minister always had the power to revoke or suspend the licence of an insurer that does not act properly. As a regulated industry we are mindful of our responsibilities under the law and to the general public," he said. "I understand why Government has come to this conclusion."