Health insurance rise is passed by Senators
Senators have passed a handful of bills, including one that increases the cost of the minimum health insurance package by 6.8 percent.Government Senator Cromwell Shakir said the standard premium rate would cost $252.27 per month from April 1, up $16.13 from the current rate of $236.14.By law the cost will be split equally between employers and employees, although some employers may pay more.This means that some employees will face up to $8 per month extra being deducted from their pay packets for health cover.However, the added cost is 50 percent less than recommended by actuaries.The cost has been curbed through an agreement that will see the Bermuda Hospitals Board [BHB] limit its fee increase to below the rate of inflation and absorb the cost of increased utilisation of its facilities.The increase, which falls under the Health Insurance (Standard Hospital Benefit) Amendment Regulations 2011, was passed in Senate on Monday.According to Independent Senator Joan Dillas Wright, rising health care costs and issues regarding the health of our community are important topics.She said the number of dialysis patients in Bermuda has jumped from 60 to around 100. “So many people of Bermuda are not taking care of their health in terms of prevention. That is something we need to pay more attention to.”Sen Dillas Wright said she supported the amendment regulations, however both she and United Bermuda Party Senate leader Jeanne Atherden questioned how much health services were costing the individual compared to the hospital’s costs.Government Senator LaVerne Furbert said the amendments were in line with what was taking place in the insurance world.“We all know insurance companies are in business to make money and make a profit and I do not think they often consider the hardship on the employees or the people that have to pay the rates.”The Senate also passed The Payroll Tax Rates Amendment Act 2011, which reduces the standard rate of payroll tax to 14 percent in 2011- 2012, an adjustment of two percentage points.Junior Finance Minister David Burt said: “The economic impact of the payroll tax roll-back will touch all sectors of the economy including hospitality, construction, retail, international business and local manufacturing.“The hope is that jobs will be retained and where businesses are stronger, more jobs will be created.”Sen Atherden questioned why the tax increase was not split equally between the employee and employer, with the employer getting 1.5 percent of the two percent hike.Labour Minister Kim Wilson was supportive of the Government roll back and said it would add “fiscal stimulus to the economy”.Opposition Senator Michael Dunkley said he supported the roll back but questioned whether it would stimulate the economy enough “to make up for the lack”.Sen Burt read the Customs Tariff Amendment Act 2011, which replaces the Corporations power to levy port dues.He said it was “not the aim of Government to take the ‘wharfage income’ away from the Corporations; but rather to ensure that only the Government of Bermuda should have the power to tax its citizens.“What will result is the removal of archaic fees and charges for the use of a nationally important asset that by virtue of history rests in private hands.”Sen Dunkley said this act must feel like “torture” to the Corporations and claimed that without the fees they would be “quite short at the next financial year”.Retail shops have been handed a zero rate of customs duty on imported capital goods for the renovation or refurbishments of their shops for the next five years.Under the Retail Shops (Temporary Customs Duty Relief) Act 2008, passed in the Senate on Monday, the benefit won’t expire until March 31, 2016.The Bermuda Housing Amendment Act 2011, which punishes landlords for sub-standard living conditions was also passed in the Senate.