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Hike in cost of Govt health care

The cost of Government health care plans will increase by more than ten percent on April 1, it was announced today.Health Minister Zane Desilva said HIP, Government’s basic health coverage plan, would increase by $86 a month while FutureCare, Government’s health plan for seniors, would increase by $35 a month. It will now cost $384 a month to enroll in HIP and $635 a month to enroll in FutureCare.Mr DeSilva said: “The primary reasons for this significant premium increase are: increases in utilization; increases in medical inflation in Bermuda; and increases in administration costs.“The combination of these increases led HIP’s cash position to decline approximately $7.7 million, or 190 percent, to a deficit of minus $3.6 million at March 31,2010. This was in contrast to a surplus of $4.1 million in 2009.“The significant premium increase is needed and is the right thing to do at this time. All health insurers in Bermuda are experiencing similar increases in claims costs.“The Ministry of Health is working closely with the Health Insurance Committee, the Health Insurance Department and the Ministry of Finance to ensure financial support is available to HIP in fiscal 2011-12.”As of April 1 all seniors in Bermuda will be eligible for Future Care Mr DeSilva said. He said the insurance plan ended in a strong financial position with approximately $8. 2 million.Neither plan will see any additional benefits in the coming fiscal year.