Slump sparks health fears

FRIDAY, JULY 22: A growing number of Bermudians are ‘gambling with bankruptcy’ by going without health insurance.

Amid rising unemployment hundreds of islanders have lost their health benefits.

Some are choosing to go without in a bid to cut costs as they adjust to life without a steady income.

But they have been warned that they are risking far greater financial hardship.

One single mom told us she narrowly escaped jail this week over a $3,000 hospital bill she racked up when she needed a caesarian section.

It’s one of a raft of stories — featured in our special report today — that underscore the extraordinary struggles facing many as the recession bites hard.

The Coalition for the Protection of Children estimates that 90 per cent of its clients — mostly single mothers — do not have health insurance cover for themselves or their children.

And the trend is believed to be spreading to the wider community with the charity’s president Sheelagh Cooper warning that many jobless Bermudians face stark choices between feeding their children and shelling out for health insurance.

Many of Bermuda’s uninsured are out-of-work and have made a personal choice to prioritize other expenses.

But a handful of ‘rogue companies’ are also facing accusations of failing to meet their legal obligation to provide health insurance for their workers.

The Bermuda Executive Health Council, which monitors companies’ compliance with insurance regulations, referred 14 businesses for investigation following its twice-yearly check in December.

Both the Bermuda Public Service Union and the Bermuda Industrial Union have also spoken out about suspicions that some firms are even taking insurance contributions from their workers and not providing coverage.

Protection

A wider trend is for people who are laid off to opt out of health insurance as a cost-cutting measure.

Statistics from Argus Insurance show a significant decrease (ten per cent) in the number of people on ‘group policies’ through their jobs between July 2009 and July 2010. The trend has continued — though at a slower rate (two per cent) — through 2011.

The numbers are not mirrored by an increase in take-up on personal policies, which have remained steady. Colonial Insurance reported similar trends.

The stats are mitigated by the fact that hundreds of work permit holders have left the island.

And Government’s budget insurance scheme HIP (Health Insurance Plan) has seen a rise in numbers from 2,829 in April 2010 to 3,377 in May of this year. Overall though, the trend is down.

The latest available figures from the Bermuda Executive Health Council (from March 2009-10) indicate a 5.5 per cent drop in the number of people insured in Bermuda.

A population ‘health survey’, to be released in September, will attempt to establish statistics for the local population and whether the current estimate of ‘one in ten’ Bermudians living without health insurance needs to be revised.

Dr Jennifer Attride-Stirling, of the BHeC, said: “We actively encourage all individuals to have health insurance, as it provides vital protection.

“Employed persons are advised to confirm with their employer that their contract of health insurance is current.

“For persons who are not employed, we understand the hardship health insurance payments may cause, but the risks of being without coverage far outweigh the cost.

“Health insurance is designed to protect you from financial hardship in the case of a serious illness or injury, and such things can never be predicted.

“A HIP or an equivalent policy can cost about $4,620 a year. This has to be compared to a potential medical bill of $100,000 or $200,000, or to a forced financial choice between life and death.

“This is not a choice anyone wants to make for themselves or their family, and the way to prevent it is to have at least a basic insurance package, because you never know when you’ll need it.”

Michelle Brock-Jackson, executive vice-president of group insurance at Argus, said it was a dangerous risk to go without.

“If you are in a serious accident, that can cost hundreds of thousands of dollars,” she said.

“It’s quite a gamble to take.

“Whether it is with us, through HIP or another insurer, I think people should understand the importance of having health insurance.”

A Ministry of Health spokeswoman said that HIP, which costs $385-a-month, was an affordable option for individuals and employers.

She said businesses had a legal requirement to provide health insurance for their workers and warned, “failure to comply is punishable by fines and prison under the Health Insurance Act”.

Sheelagh Cooper, president of the Coalition for the Protection of Children, said sweeping changes to the system were required.

She said many unemployed Bermudians were facing a choice between feeding their children and having health insurance.

“If you lose your job you are struggling to pay your rent, you are struggling to feed your children. How can you afford monthly HIP payments?”

One of the goals of the Bermuda National Health Plan is to reduce the cost of healthcare and give every Bermudian access to an affordable plan.

The policy is currently under consultation.

Special report: Bermuda in recession

• Slump sparks health fears
• Threatened with jail for childbirth bill
• 'We must look to the future'
• Viewpoint: How is the recession affecting you?
• A financial mess of our own making?
• The good news - help is at hand
• 'Green' jobs are seen as source of future growth
• Turning passion into profit
• We must grasp new realities to recover from this slump