Former Government Minister Sir John Plowman has called for legislation to ensure pensioners are kept in insurance schemes after retirement.

Some companies remove former workers from cover, resulting in big medical bills for pensioners at a time when loss of earnings means they can least afford it.

Sir John believes health insurance should cover all health and medical needs for seniors.

He said: "People in a group health scheme should continue to remain in that after retirement. It requires legislation.'' Working people will have to meet the higher costs of paying for medical care for the elderly, admits Sir John.

"But what they have to remember is that they themselves will reach that stage and with life expectancy increasing all the time the day will come they will want proper medical and hospital care.'' And Age Concern said serious thought needed to be given to the issue.

Chairwoman Joy Leman said: "Medication costs are very, very high but many seniors are not covered.

"Some companies are very progressive and do keep people on in retirement but it's something that needs to be looked at.

"At other companies when you are finished working for them you are on your own and you find your own insurance.'' "And that's the time you would find it hard to get a good medical clearance -- that's the age when medical problems crop up.

"You are in a Catch 22 situation because past 65 a lot of people may not have major medical insurance, all they have is the hip.

"I think the whole insurance situation needs to be looked at. Government has been looking into this with the Arthur Andersen report.

"There are facts and figures and we have a number of reports. It's time they got on with it.

"But all the insurance companies are running a business. If you speak to them, they will say they have to consider how they are going to make money.'' "There are pros and cons on either side, it depends on the size of the company you have been working for. There might be some way of pooling resources.'' Health Minister Nelson Bascome agreed health insurance was important but said it was still possible to persuade insurance companies to cover seniors without forcing them via legislation.

He said: "When seniors finish work it's the most important time to have health insurance coverage.'' Plowman calls for legislation to give seniors insurance cover "Health insurance companies are looking at this.

"Right now we are still in the negotiation with insurance companies. They recognise the issues are very real.

"We will continue to work with them trying to develop a policy.'' Shadow Minister Kim Young said the issue was of massive importance.

She said: "Health insurance coverage is the main concern of people over 65 when you are out canvassing.

"While you are working most people are covered but when you stop working the problems occur.

"Some people are cut off the next day. We need to encourage private companies to make that part of their retirement package.

"It hasn't become a big enough issue so companies feel it's the right thing to do. A lot of companies do continue their employees on.

"Some companies continue the coverage but if that person dies the spouse is cut off and that's even worse they can't get any private coverage at that stage.

"We need to get collective group coverage, private insurance just for yourself is extremely expensive.

And she said certain aspects of health care needed by seniors were not covered by insurance.

"There's no insurance coverage for the hyperbaric unit so it's being used very little. It's a preventative measure.

"A couple of people have had their legs saved because of the hyperbaric unit.

But if people are not insured then they are not going to use it.

"The Hospital Insurance Commission recommended it be covered and private insurance companies and the Health Minister supported it but the finance Minister turned it down for coverage.'' Sir John said pensioners faced other financial challenges.

"The pension is really not adequate for current conditions. Secondly the cost of health care is constantly rising and people are living longer.

"A growing number of elderly people on fixed incomes are unquestionably finding it very difficult to meet the cost of living in Bermuda.'' He said mid 1980s inflation had eroded the state pension as well as fixed private pensions, introduced in the mid 1970s, and that rent and land taxes rises had worsened the pensioner's plight.

"In some cases pensions are indexed so they increase with the retail price index but a great many are fixed.'' Sir John also said working people needed to wise up to what faced them when they retired.

"People need to realise they are going to live much longer and they need to make adequate provision so they can be reasonably independent.

"I think people are beginning to grasp this but not fully.

"A number of people will live to 100, it's a dramatic increase. It's not at all unusual to live into the high 80s.'' Now 91, Sir John is an energetic campaigner for old people and a living testament to what people can achieve in their latter years.