BROKEN PROMISES

#6 of the OBA’s campaign platform:

“Reduce the Cost of Living: Our high cost of living imposes a tremendous financial burden on Bermuda families. We will make Bermuda more affordable for them.”

In May, Minister of Health, Seniors and Environment MP Atherden tabled the Health Insurance (Miscellaneous) Amendment Act 2015 announcing that the cost of Standard Premium Rate (SPR) will increase by 12 per cent.

SPR comprises:

1, the Standard Hospital Benefit (SHB), which is the minimum, mandated package for health insurance in Bermuda and forms the foundation of all health insurance policies

2, a Mutual Reinsurance Fund (MRF) component

This statement was a stark contrast to the OBA promise made in its pre-election campaign to: “Reduce the cost of healthcare through tighter controls of Government-financed programmes, including the Bermuda Hospitals Board, which accounts for 40 per cent of all healthcare spending in Bermuda.”

“Lock me up”

On June 7, a press conference was held by a group of charities, including:

• Age Concern Bermuda

• the Interagency Committee for Children and Families

• the Centre on Philanthropy

• the Bermuda Cancer and Health Centre

• Family Centre

• Pride Bermuda

The groups expressed their concerns regarding the impact that the proposed increase of medical premiums would have on our most vulnerable.

They “asked for a freeze on all legislative changes to healthcare provision and coverage until there has been substantive community input on what constitutes basic and affordable healthcare coverage for Bermudians”.

Despite their plea, the spokesman for the group said: “ ... Cabinet’s response to our concerns indicated that a premium freeze could not be met. Government’s resistance to introduce measures to control the cost of healthcare services brings into question their willingness to address holistically the diverse factors that contribute to costly healthcare in this country.”

Highlighting this, pensioner Mrs Kathleen Brangman shared that she had only $68 a month left over after her health insurance coverage deduction.

THE IMPACT

It is estimated that Bermuda spends $11,252 per capita on healthcare costs.

Any increase will have far-reaching implications on our economy.

In May 2015, our inflation rate measured by the Consumer Price Index (CPI) was 1.2 per cent. In comparison, the Health and Personal Care Sector of the CPI stood at 8.5 per cent. In September 2014, MP Bob Richards told seniors who had inquired about getting an increase in their pensions that “money does not grow on trees”. The Finance Minister also spoke of the “shared sacrifice” that everyone in Bermuda needed to make.

While this increase will affect all residents, as it forms a major contributor to the Island’s cost of living, the sacrifice will not be equally shared. Our seniors will bear the brunt of this increase, as the last cost-of-living increase for seniors’ contributory pensions was in August 2011. Since this time, the cost of living has increased 7.8 per cent.

IGNORING THE PLEAS

Despite its pre-election promises, on July 17 the OBA announced that, effective September 1, the following increases will be implemented:

1, HIP premium up from $390 to $433.31

2, FutureCare premium up from $450 to $504.21

Bermuda’s seniors have given their all to this Island. They have worked hard, raised their families and contributed more than their fair share to our economy.

Surely, at this stage of their lives, they should not have to choose between groceries and healthcare.