David Burt, the Premier and Minister of Finance, believes the proposed merger between two of Bermuda’s largest domestic insurance companies is a direct reaction to the decision to pursue Universal Health Coverage.

The BF&M announcement came as the Government moved plans for UHC into higher gear.

Last month the Ministry of Health launched a newsletter to offer updates on the Bermuda Health Strategy 2022-2027 progress towards achieving Universal Health Coverage.

On Friday, the Lower House passed the Bermuda Health Council Amendment Act 2024, which is designed to enhance health data collection before more changes pending UHC.

Community concern for what a merger could mean for insureds was raised on the floor of the House by MPs during the motion to adjourn.

The Premier responded: “My hope is that the members who speak forcefully around this, will support the Government when the time comes to bring the legislation to ensure that these practices can be controlled.

“Because the real truth is, Mr Speaker, what all of this [the proposed merger] is around; it is around the Government’s push to Universal Health Coverage. That’s what this is, Mr Speaker.”

The Premier acknowledged to Parliament the concerns within the community and within his government on how the consolidation “could negatively impact household budgets”.

“In any place, when you see a reduction in competition,” he warned. “It is always the assumption that consumers will suffer and there’ll be an increase in costs.”

He told MPs that he wanted to address the issue of “what would be called anti-competitive behaviour”.

While the Premier did not call the transaction anti-competitive or state it was a negative development, he did indicate the Government’s regulatory role and responsibility to the community to protect against such issues.

He said: “It’s not for the Government to say how the private sector should work and operate. But it is for the Government to ensure that it is fair and not anti-competitive.”

He said the Government needed to ensure “they are not using advantages which they may have, which may harm the small guy, or in the end, the consumer”.

He added: “We have set out a very clear timeline on the execution of healthcare reform. We have been very clear around this particular merger.

“Something that damages consumers is not something that we believe is something that should be going forward.”

A Ministry of Health statement outlined its key concerns and expectations regarding the merger, including:

• Assurances that the merger will not result in increased premiums for individuals and families

• The continuation of the full range of services

• The definitive support for the implementation of UHC in Bermuda

• An assurance that individuals with publicly funded health insurance plans are not adversely affected