An overhaul of the Government Employees Health Insurance scheme has been passed by Senators.

It effectively closes a loophole that allowed politicians to join the scheme at a moment?s notice if they became seriously ill.

That was what happened in 2002 when the late Tourism Minister David Allen was admitted to the scheme to pay for off-Island medical treatment that cost around $57,000 despite him not previously being part of the health insurance scheme.

The amendment to the GEHI means parliamentarians must join within three months of being elected or appointed, or face a time-delay application period of up to six-months so that checks can be made to ensure they are not hopping into the insurance scheme to offset imminent health bills. Another change allows dependants of those enrolled in the scheme to be included up to the age of 26 if they are still in education at a recognised school, college or university to be covered by the insurance ? an increase in the upper age limit from the previous cut-off point of 21. Introducing the amendment bill, Sen. said there are around 10,000 Government employees, MPs, Senators and their dependants enrolled in the scheme, which is funded on a 50-50 basis between the policyholder and the Government through its Consolidated Fund.

He also pointed out that by October this year auditing of all the insurance scheme accounts will have been undertaken. Currently the 2004, 2005 and 2006 accounts have yet to be checked.

Sen. asked if there was any provision if an enrolled member of the legislature became unemployed, and also if there should be an ability to increase the age of dependants in the scheme from 26 to a higher limit for those who continue to be in full-time education, such as when they are pursuing a PhD.

Independent Sen. , who used to work in the health insurance business in the private sector, said it was important the scheme?s benefits were comparable with those in the private sector. She was pleased the GEHI appeared to be ?catching up? with private insurance schemes.

Fellow Independent Sen. admitted he had gone back into education at the age of 35, but he recognised that there had to be a cut-off point for inclusion in the scheme and he felt setting it at the age of 26 for the dependants of policyholders was adequate.

Answering the points raised Sen. Tannock said the committee that oversees the running of the health insurance scheme was constantly reviewing the benefits of the scheme in comparison to what is on offer in the private sector and ?editing the programme as is deemed necessary.?

The Government Employees (Health Insurance) Amendment Bill 2006 was passed at its third reading by the Senate.