The Bermuda Industrial Union yesterday called on health insurance providers to lower their rates.

At a press conference yesterday afternoon union president Chris Furbert described the insurance increases as "alarming and unacceptable". And he called for an independent body to regulate the Island's insurance rates.

"(Government's) HIP (programme) has increased by 24 percent and standard hospital rates are up by 13 percent," he said. "The BIU sent a letter to insurance companies on February 15 asking for them to consider freezing their rates. Only one company has agreed to meet with us. The others all said 'it's just business as usual'."

But Jennifer Attride-Stirling of the Bermuda, CEO of the Bermuda Health Council said that the rates had been raised to match the cost of health care.

"The price of the basic hospital package is set by Government," she said. "While 13 percent may sound like a lot it actually works out to be $13.85 a month. And the cost has increased to match the increasing price of services. Health care providers, facilities have all increased their prices and without this rate increase those things couldn't be paid for."

She added that an increase is necessary for Bermuda's health system to provide proper care to the population. She said the increase will help provide better health coverage in the future.

In 2010 the cost of the minimum health insurance package for employees will sbe $118.07 a month, which is an increase of $13.85 from 2009.

The total cost of the Standard Premium Rate for 2010 is $236.14 an increase of $27.70 from 2009. The law states that the cost must be shared equally between employers and employees.

"This increase is an unfair burden for employers to bear," said Mr. Furbert.

According to Ms Attride-Stirling these rates are set by Government and decided upon by an actuarial review ordered by the Bermuda Health Council.

By law every health insurance plan in Bermuda must include a minimum package called the Standard Hospital Benefit which covers inpatient and outpatient hospital treatment. HIP is Government's "affordable health insurance plan". It covers the Standard Hospital Benefit and some additional benefits but not major medical.

The Standard Hospital Benefit covers the basic level of health care that every employer must provide, according to the Health Insurance Act 1970. The Bermuda Health Council is tasked with ensuring Bermuda's health care system is sustainable. The Actuarial Report may be obtained from the Bermuda Health Council website www.bhec.bm.

The BIU will be holding a public meeting this evening at the Heritage Worship Centre on Dundonald Street at 5.30 to further discuss insurance rate increases.