Employers facing the dual challenge of the recession and the rising costs of healthcare will be able to take advantage of a new group health insurance plan launched by the Argus Group.

The Signal Plan, which costs about 10 percent less than standard health plans, offers a lower cost healthcare option with comprehensive local and overseas benefits, but with some restrictions in order to make it more affordable than other group health plans available in Bermuda.

The new plan includes benefits for local hospital treatments and medical services. Full coverage is provided for local hospital expenses and physicians' services provided in hospital. Some restrictions apply on the number of office visits to local service providers and some local services are not covered.

Gerald Simons, president and CEO of the Argus Group, said that a lot of concern had been expressed about health insurance premium increases which had been exacerbated by the economic downturn and salary freezes over the past two years, but at the same time people recognised the need for insurance protection.

"We developed this plan in response to the cries from the Minister of Health and from the public at large for a lower cost option and the Signal Plan will cost around 10 percent less than typical plans cost," he said.

"With healthcare costs going up people feel very exposed without some form of protection.

"Last year we suggested to some employers that were having difficulties in meeting their health insurance premiums that they consider a different plan design."

Mr. Simons said that as a result of many employers not being able to afford the increases in health insurance premiums in the current economic climate, Argus came up with a plan to meet most of their goals while complying with the law, offering adequate care for catastrophic cases, encouraging prevention and was affordable.

"We have had discussions with various employers and not surprisingly we have found a great interest in this product from employers in the hospitality and construction industries, as industries that have been hit hardest by the current recession," he said.

"So we wanted to give those employers an element of choice as a viable option."

Emergency medical treatment and treatment that is not available in Bermuda will be covered by the Signal Plan at certain US and Canadian medical facilities specifically selected by Argus. The hospitals have been chosen for the high level of medical services offered at more competitive prices than many hospitals. Overseas medical expenses are capped at a lifetime maximum of $1 million on the Signal Plan. Employers can elect to add dental and vision benefits to the Signal Plan.

"In launching the Signal Plan, the Argus Group is responding to the public concern about the rising cost of health insurance premiums especially during these challenging times," said Mr. Simons. "We wanted to introduce an element of choice for those employers in industries that have been hit particularly hard by the downturn in the economy. The Signal Plan is intended to reduce the cost of insurance while still enabling employers to provide comprehensive health insurance coverage for their employees."

Bermuda continues to face challenges in sustaining a cost-effective health care system. The cost of health care has been growing at a rate higher than inflation for several years and as a result, health insurance premiums have risen again this year. The increase in health care expenditure is attributed to increasing consumer expectations leading to greater utilisation of services, reliance on expensive new technologies, medical advances making previously untreatable conditions now treatable, an ageing population and the impact of unhealthy lifestyles.

For more information about the Signal Plan contact Argus Customer Service Centre on 298-0888.