absorption of extra services.

The warning came from the Senate after members passed four health insurance amendments.

Opposition Senate Leader Milton Scott warned that health insurance premiums would probably take into account two areas of healthcare that now came under the Standard Hospital Benefit plan.

He said: "I am sure it will be included in premiums next year, that is the nature of the insurance industry.'' He was speaking after Senators passed the Hospital Insurance Amendment Act 1998, which transfers the cost of diabetic counselling and hospice care from the Mutual Re-insurance Fund to the Standard Hospital Benefit plan.

Sen. Alan Marshall (UBP) said for the last five years the total cost for hospice care was $1,247 million and for diabetic services it topped $370,000.

He said the two services were originally put into the MRF until costs were known and it had always been planned that they would be eventually moved to the SHB plan.

Sen. Walwyn Hughes (Ind) said it was reasonable to expect that insurers would take into account the added features, look at the risks and re-assess the premiums accordingly.

In addition, Senators passed the draft regulations, the Hospital Insurance (Standard Hospital Benefit) Amendment (No 2) Regulations 1998.

Sen. Marshall said the act provided insurance coverage for services that were normally carried out in the hospital but took place in the homes of patients who couldn't get into the hospital.

He said currently claims were not being submitted but the amendment would ensure that those services were paid for.

Sen. Milton Scott said it was time that the Government allowed private clinics to compete for certain aspects of health care.

Earlier he questioned the policy of not allowing people to receive treatment outside the hospital, which could cost up to 40 percent less.

He said the King Edward VII Memorial Hospital had inflated prices for some services but outside agencies were not allowed to compete.

Sen. E. T (Bob) Richards said some services at the hospital were more expensive because they subsidised room rates.

Later he added: "King Edward has an obligation to provide services to the people of Bermuda -- a private clinic doesn't.

"That is the difference, it has got to be there for Bermuda all the time.

That is one of the reasons it will be more expensive for certain services there.'' The Senate also passed the draft regulations of the Hospital Insurance (Approved Scheme) Amendment Regulations 1998, which increases the fee from $350 to $400 for employers who self-administer their own hospital insurance plans.

And the draft regulations of the Hospital Insurance (Licensing of Insurers) Amendment Regulations 1998, which increases licensing fees for insurers from $500 to $550, was also approved.