Premiums for private and public health insurance could rise after the House of Assembly agreed to a 13 percent increase in the Standard Hospital Benefit.

The $27 rise was branded "baffling" by Opposition spokeswoman Louise Jackson.

Last night in the House of Assembly Health Minister Walter Roban said the Standard Hospital Benefit premiums were reviewed annually by the Health Council, who sought advice from actuaries.

"The standard premium is applicable to both private sector insurers, the Government's Health Insurance Plan and Government Employee Health Insurance Scheme. It regulates the maximum that insurers may charge for standard hospital benefits.

"The Council has recommended a 13.3 percent or $27.70 increase in the Standard Hospital Benefit Premium from $208.44 to $236.14 per month.

"This is in line with the recommendation of the Consultant Actuaries. The Actuarial Report as relates to the Standard Hospital Benefit indicated that for the last three years, the Government has approved increases below the level recommended by the actuaries."

Minister Roban said this has led to larger than acceptable loss ratios for all insurers.

"By increasing the Standard Hospital Benefit in line with the actuarial recommendation, insurers will improve their loss ratios and be directly responsible for any increases they implement," he said. "This precludes their ability to blame the Government for their increases as has been the case in recent years."

Shadow Health Minister Louise Jackson however, said: "I'm really questioning how we have a rise here of 13.5 percent for the hospital subsidy when you have locked in FutureCare for the $300 premium and $600 premium.

"And then arriving at this it's baffling to say the least."

Dr. Grant Gibbons, Shadow Education Minister, added: "If warning bells aren't ringing on the other side of the House as regarding healthcare premiums, then this increase of 13.5 percent should.

"Healthcare costs are effectively out of control. This is a premium which every working person has to pay. "When something increases by 13 percent every year, this is compounding and pretty soon it has gotten out of control."

He said: "There needs to be a much closer look at the costs provided in healthcare. Alarm bells should be ringing."