Government MP Dr. Ewart Brown has charged the local health insurance industry operates unfair and unbalanced practices.

Dr. Brown on Wednesday announced in the House of Assembly that he is "paving the way'' for radical reforms in the way health insurers do business in Bermuda.

Charging that Government has been subsidising the local industry, Dr. Brown blamed the health insurers for the continued poor financial performance of the Island's hospitals.

"The insurance companies have operated such strange and contorted schemes in the way they have compensated the hospital,'' he said.

And he accused local insurers of restricting their coverage to the most healthy segment of the population in what he called "selective cherry picking''.

"They escape treating the most at risk section of the population,'' he held, "by being allowed to choose and refuse their customers in their selective cherry picking.'' "There is a real imbalance that we have to correct in this area,'' Dr. Brown insisted. "Something is wrong when people pay their premiums for over forty years and then at age 75 the insurance company refers their bill to the hospital.'' Noting too that the fee structure at the hospital needs to be changed, Dr.

Brown pointed out that the hospital currently charges a flat rate per night, irrespective of the nature of their treatment.

Health Minister Nelson Bascome had earlier revealed that he was reviewing the hospitals' fee structure.

"We know that the actual cost of the intensive care unit, a critical and highly used service, is greater than the cost of a general ward,'' he said.

"Both are charged out at the same rate but in due course, this may change if it helps to stabilise the financial position of the hospital.'' "We cannot continue to allow them to deal like this,'' Dr. Brown held, "every year insurers will have to negotiate with the hospital in good faith.'' But UBP MP Dr. Grant Gibbons shot down Dr. Brown's approach saying it was threatening. "I think you've just seen the kind of `at your peril' threats that don't get you very far,'' he said. "This `it's everybody else's fault' is not what we are looking for from this Government,'' he continued. "This will not help us to solve these problems and get ahead.''