deductions by a total of 6.6 percent.

Transport Minister Dr. Ewart Brown , who is a general practitioner, said he supported the rise but will be calling for a summit of health and insurance professionals to try to restructure how the Island pays for the health service.

Explaining the increase in the House of Assembly on Friday night, Health Minister Nelson Bascome said the Bermuda Hospitals Board expected revenue of $88.7 million, with spending of $85.3 million, however, a deficit of $800,00 was projected for 2000-2001.

Shadow Health Minister Kim Young said health costs were always rising faster than the rate of inflation, and that financial planning and cost-cutting at the hospital -- which is funded by a Government grant -- were needed.

She said the increase in health insurance deductions was "going to hit a lot of people in the pockets. You take a dollar here, a dollar there, and it all adds up''.

The UBP supported the increases, although she warned that people on fixed incomes and the self-employed was also be hit.

Dr. Brown said: "Every year we come here and simply increase the payments that have to go to the hospital.

"I understand that and support the need for the legislation, but we are going to have to face in the future all stakeholders coming to the table -- the insurance companies, hospital, the doctors -- and have got to come to a creative confrontation of sorts and fashion something for Bermuda.

"When it costs Government more than $60 million annually for two hospitals in a small place like this, something clearly ought to change.

"I am going to be a proponent of calling people to the table so that we can change the way things happen. Government can't dictate to the insurance companies what to do. The insurance companies don't answer to the Health Minister.

"The hospital can no longer continue to be this way because Government and the people can't afford it. We have to be more creative than that and have to go to the drawing board.'' Among the other changes announced to the Hospital Insurance Plan was a move to extend the grace period from one month to three months before terminating an insurance contract if someone misses a payment.