Seniors advocate group Age Concern is calling on Government to exempt seniors from insurance increases this year.

Seniors were given a nine percent increase in pensions this year, but Age Concern fears that the increase is being eaten up by the leaping cost of healthcare.

?We are definitely concerned that seniors? premiums are being increased also, especially in light of the fact that the additional benefits don?t appear to be benefiting seniors,? Age Concern chairperson Walter Roberts said yesterday.

The basic standard insurance premium represents the minimum benefits that all those with insurance in Bermuda are entitled too. It is made up of the hospital insurance premium and the mutual reinsurance fund levy.

Last year the total basic standard premium was $108.30. This year the Government actuary recommended that premium be increased by 22 percent.

President and CEO of Argus Insurance Gerald Simons explained that recommendation was made because almost all of the funds available last year were used up in insurance claims.

Traditionally, Government sets the basic standard premium, he said, allowing for 15 percent to go to insurance companies for administration costs.

However claims last year were well above 95 percent, he said, meaning that insurance companies were losing money.

The Government actuary recommended premiums be increased by 22 percent in an effort to make up for this lost ground, but Finance Minister Paula Cox set the total increase for basic standard premiums at 10.8 percent instead. ?That?s a move in the right direction, but it doesn?t make up for this year,? Mr. Simons said.

The hospital insurance premium increased from $91.90 to $102.95, a 12 percent increase. The other part of the basic standard premium, the mutual reinsurance levy, will be increased from $16.40 per person per month to $17.05 ? an increase of four percent.

The total basic standard premium, therefore, will increase from $108.30 last year to $120 this year, an increase of 10.8 percent.

Included in that premium increase are new basic benefits including access to the detoxification unit at St. Brendan?s hospital, neonatal screening for newborns, in-hospital dental treatment for those confined to the hospital as a result of physical or mental illness, and improvements to the wound care unit, among others.

But few of those benefits directly helped seniors, Mr. Roberts said.

?And if they are not receiving the benefits, why should their premiums also be increased?? he asked yesterday. ?Seniors have a hard enough time making ends meet.

?I would hope Government would consider this fact, especially in light of the fact that many seniors have a limited income. I would hope Government would consider not increasing premiums for those over the age of 65.?

Government heavily subsidises health care for seniors, paying 80 percent of the healthcare bills for those over 65 and 90 percent for those over 75.

Seniors will also receive a nine percent increase in pensions from Government in August this year, but Age Concern executive director Claudette Fleming said some of the increase will be eaten up by the insurance hike.

?It is most unfortunate that, even before the pension increase hits, money is already being taken away from seniors,? she said.

?There is no question that healthcare costs are rising faster than incomes or the cost of living,? said Mr. Simons.

However, with healthcare a necessity like food or oil, he said not much could be done.

?The challenge is that it is going up every year by an excessive amount.?

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