Argus Group warns that the reduction in work permit holders on the Island is going to lead to even higher health costs in Bermuda, and that our system of health insurance is “no longer sustainable”.The insurance company also said that in the continuing recession, it’s seeing more premium delinquencies, and more employers reducing their level of coverage and switching to lower-cost plans.In the company’s latest annual report, for the year ended March 31, Argus chairman Sheila Nicoll and CEO Alison Hill write: “The reduction in the number of guest workers has led to an increase in the average age of Bermuda’s insured population, which will lead to even higher claims costs in the future.“The highly experienced team of experts at Argus Health is working closely with clients to explain these health insurance trends and to develop ways to maintain an adequate level of protection at an affordable premium. Every effort is being made to contain health claims costs and internal administration costs so that these savings can be passed on to clients.”Argus noted that the Government-sponsored National Health Plan aims to address the challenges of bringing healthcare inflation in line with the general level of inflation.“Work to develop the details of the plan has begun and we are proud that five senior Argus employees were selected to serve on various task groups: namely, those dealing with benefit design, overseas care, health promotion and the all important finance and reimbursement task forces,” the report to shareholders said.On claims, Argus said its Group Health, Life and Disability division “experienced further success in claims containment following a year of aggressive negotiations with overseas medical facilities and continuing efforts made locally to ensure that clients received the best value services for their premiums”.The report to shareholders said the division recently completed ”its most challenging renewal period ever” as health costs continued to rise at rate well above inflation.As a result of the recession, “Employers and their employees are finding it increasingly difficult to afford any increase in premiums.“Two years ago Argus introduced its lower cost option, the Signal Plan, which has proven to be very attractive to many employers who wish to contain health insurance premiums.“Regrettably, an increase in premium delinquencies and a decline in the number of insureds as a result of business closures and redundancies have become evident.”