Health department moves to improve accounting
The Department of Health said it is moving swiftly to improve accounting, after the latest figures for Government health insurance drew fire from the Opposition.“Data clean-up projects” are expected to be finished by the year's end, a spokeswoman told The Royal Gazette.Financial statements are also to move from an annual to a quarterly basis for the 2013/14 fiscal year — and statements for 2010/11 have been drafted, for audit at “the earliest possible opportunity”.A lack of resources at the Auditor General's office was said to have contributed to delays for the most recent financial statements.Health Minister Zane DeSilva tabled statements up to March 31, 2010 in the final session of the House of Assembly, causing One Bermuda Alliance MPs to question why more recent figures weren't provided before the summer break.The latest financials represent “a clearing of the last backlog”, the spokeswoman said.“The arrears in audited financial statements stretched back for a decade. It has taken a considerable effort on both the Auditor General's and the Department's parts to clear this backlog.”OBA MP Grant Gibbons criticised the 2010 figures in the House, noting that administrative costs for some Government insurance funds run as high as one-third the revenue taken in by premiums.The Department of Health responded that a “two-year ramp up” with the implementation of a new system was to blame for the increased costs.“Administrative expenses have fallen in 2011/12, and are expected to fall again in fiscal 2012/13 and beyond,” the spokeswoman said.Increasing premiums to cut the shortfall for Government's Health Insurance Plan would be “self-defeating, and would undermine the purpose of HIP as a low cost insurance plan”, she added.“HIP currently serves as an alternative to the more expensive major medical plans in the private sector. Indeed over the last several months the Department has seen an increase in the number of compulsory, or working persons, enrolling on HIP, which is another sign of the pressure that employers are under.”And the seniors' insurance scheme FutureCare covers a small but expensive pool of policy holders, the spokeswoman said.“From a practical perspective, it is not possible through normal actuarial and insurance methods to establish such a group of insured persons in such a way as to make it financially self-sustaining. This is because inevitably the premium contributions from individuals in the group would need to be too high for individuals to pay.”She said that FutureCare's financial viability rests on “the sustainability of the working population and the sustainability of Government contributions”.