Rising premiums for the civil service are a taste of things to come for the private sector, according to a new insurer specialising in plugging the gaps in coverage.

“We have already seen and heard in the press, during the furlough debate, that Government Employee Health Insurance (GEHI) premiums are slated to increase significantly — maybe as much as 18 per cent,” said Leon Bascome, CEO of Moongate Insurance Limited. “It is my unequivocal belief that increases will transpire in the private sector, once again.

“Public sector policies are subject to actuarial review — these could increase as well.

“Seniors need to be vigilant as to what is happening to their insurance, not only in terms of premium, but in terms of cover as well. At the age of 65, some cover in the private sector is reduced or eliminated altogether.”

Moongate, which has been up and running for a little more than a year, has had the greatest success with its HealthGap product, rolled out in conjunction with the seniors’ advocacy group Age Concern.

The company has fielded close to 1,000 inquiries and has written “hundreds” of packages.

Mr Bascome said the average age of his clientele was from 50 to 65.

HealthGap received a keen reception when it was launched a year ago before an audience of seniors — 60 per cent of whom said that rising health costs were their main concern. The cover was geared to augment basic policies such as the Standard Hospital Benefit, the Health Insurance Plan (HIP) and FutureCare. Of particular concern has been the air ambulance service, which HIP and FutureCare do not cover and which can cost $15,000 to $30,000.

Ms Bascome said three patients had been medically evacuated since the product’s launch.

Seniors pay $75 a month for HealthGap and qualify for discounts at participating healthcare providers.

Mr Bascome said the company had acquired a health insurance specialist who would help develop it further, and had two new initiatives planned.

The insurer said the Island’s flagging economy continued to put pressure on businesses when it came to paying health insurance premiums. “Cover is mandatory under the Act, and we see that employers and individuals wish to remain in compliance,” Mr Bascome said. “However, revenue shortfalls make it difficult. Some go in default, while others cancel altogether and take their chances, which places further pressure on the health and economic system.

“Our seniors will endure further pressure on their pensions and private funds, as even the grocery store discounts of 10 per cent will cease at the end of this month.

“Excuse the colloquialism, but Peter and Paul will be fighting again. I don’t make light of it, individuals are already finding it tough.”

MoonGate Insurance plans to host another seminar with AGE Concern on Tuesday, Mr Bascome said.