Tuesday, May 26, 2015
Bahamian workers could see their contributions to employer-sponsored health insurance plans increase by between $40 to $100 per month once premiums are subjected to Value-Added Tax (VAT) from July 1.
Lynda Gibson, Atlantic Medical Insurance’s executive vice-president and general manager, told Tribune Business: “In most companies, the employer pays a portion - if not 100 per cent -of the employee-only coverage. The employees have to pay for their dependents.
“Whatever portion an employee has to pay of their insurance, the Government is charging 7.5 per cent on to that because it belongs to the consumer. I have seen that going anywhere from $40 more a month to $100 more per month. The average person cannot afford to pay anything more.”
All insurance products will be exempt from VAT until July 1, 2015, after which life insurance, annuity insurance and savings plans will remain exempt. Underwriting and reinsurance services relating to these services will similarly be exempt, along with any associated broker or agent fees.
Non-life insurance services, including property, health and casualty insurance, will be subject to the standard 7.5 per cent VAT rate after July 1. Insurance services supplied to persons or businesses outside the Bahamas are normally zero-rated.
Although insurance companies will not charge VAT on premiums before July, they must effectively eat the cost of VAT-able services in the meantime. Insurers have questioned the Government’s decision to levy VAT on health insurance if it intends to make healthcare more affordable and accessible for Bahamians, and expressed concern that many consumers - both employers and individuals - will simply opt to drop their coverage when costs increase.
Mrs Gibson, who is also a member of the Bahamas Insurance Association’s (BIA) National Health Insurance committee, told Tribune Business that insurers were not opposed to the Government’s push for universal health care.
But she added that despite the competitive nature of the industry, insurers have come together to voice their concerns surrounding the proposed implementation of National Health Insurance (NHI) and its impact on the industry.
“One of the things that we have done as an industry is that we have come together. The industry is very competitive but we have come together because we have realised that unless we come together the whole industry is going to go up in smoke,” said Mrs Gibson.
“We won’t be able to get health insurance, and can’t depend on the public system because it’s already overloaded. If it’s no longer accessible none of us will be able to afford universal health care.
She added: “We are not against universal health care. I think it’s a good thing, because it will create a broader base for health insurance. You won’t have all this anti-selection. When you have more people, the risk will spread and we can remove the pre-existing condition limitations we have on policies.
“It will bring down the cost. In other jurisdictions where my company operates and they have mandatory health insurance, because it is mandatory everyone must have it, and we’re not selected against.”
Mrs Gibson urged the Government to first fix the existing healthcare system and infrastructure before it launches NHI. “The Government is not even billing the private sector properly,” she said.
“They need to look at what they are supposed to bill the private sector for. The billing system in the public hospital is awful. Neonatal is one of the most expensive areas that they are not billing for. The private hospitals can teach them a lesson on how to submit bills to the private sector.
“In other words, they have money out there that they are not even collecting. They are introducing this into a broken system. All we are saying is fix what you have.”
Comments
Islandgirl says...
Has perry ever taken the time to investigate each industry and determine not only the feasibility but the morality of taxing them? No, because he is too lazy to do so. Why is health care on a whole being taxed? But of course, to force us all onto NHI where 52% of us pays for everyone. If you think you have no access to health care now, wait until this burden is hung around our collective necks. Life as we once knew it is abolished beneath this "special" genius, as his party's chairman put it. I wonder how much more it will take for Bahamians to shout out against this abuse. Here's the icing on the cake. It's happening right when Cuba is opening up. Fantastic, perry! Legacy assured. One man to destroy us all. May God have mercy upon us.
Posted 26 May 2015, 2:31 p.m. Suggest removal
ohdrap4 says...
it is the other way around 52% are non contributory, 48% pay for the rest.
As for what the BIA said, it will change the "way of life", that is "Their way of life", they will have one less stream of ripping off people.
What has to stop is the free health care for illegals, to make space for the soon-to-be direct paying public.
Posted 26 May 2015, 3:03 p.m. Suggest removal
TalRussell says...
Comrades just you make sure you got’s sufficient assets or basic funeral insurance cover your funeral.
Funeral costs have become too damn expensive, placing them out way out da reach of ordinary dead people's. You should be able bury a loved one's for under $3,000 maximum. How you can do this, is to hold da staging and everything at the grave-site, including like holding da service and viewing body right at the burial site.
If you weighs less than 645lbs, I am so told that one them sturdier cardboard coffins can be had for under $800 .... and it still can facilitate a respectful, beautiful outdoor service - and no one but the living will care a good hoot.
When ya ready do da ashes to ashes stuff, simply lower da cardboard box and contents down into the open hole and cover it well, allowing mother nature and da dirt act as da casket's vault. Just a consumer tip for the sceptically-minded family members, them cardboard's have not only seen a lowering in pricing but improved quality while offering newer designs and variety colours selections.
Amen to all preparing to decease!
http://tribune242.com/users/photos/2015…
Posted 26 May 2015, 3:56 p.m. Suggest removal
ohdrap4 says...
you can rent a mahogany casket for the viewing and the service, then use the cardbord box one just for the funeral.
Posted 26 May 2015, 4:31 p.m. Suggest removal
TalRussell says...
Comrade Odrap4, I am a strong believer that after you're dead, dead - it's time get out from under renting other people's things.
Posted 26 May 2015, 4:44 p.m. Suggest removal
asiseeit says...
The government of the Bahamas is the #1 enemy of the Bahamian people. There has never been a greater evil in this country than this government. The Bahamas is being destroyed from within.
Posted 26 May 2015, 4:16 p.m. Suggest removal
John says...
I am sure there has to be some mistake in this story. How could VAT at 7.5% increase insurance premium by $40 -$100 a month? That would mean these premiums range from $533.00 and $1,333.00 a month. Sounds rather high for an average worker to be paying $15,000 a year in health insurance.
Posted 26 May 2015, 6:23 p.m. Suggest removal
ohdrap4 says...
my daughter's premium is 466.66 per month, she pays 280 out of her salary and the employer pays the rest.
as she put it, the health in surance is like the car payment.
her deductible is 1,800, so she rarely claims
i would be glad to see health insurers disappear from the face of the earth.
Posted 27 May 2015, 8 a.m. Suggest removal
John says...
sounds like it be better to put that 466.66 on a fix and add account every month especially if she is not claiming on the insurance.
Posted 27 May 2015, 9:20 a.m. Suggest removal
ohdrap4 says...
well i dropped health insurance years ago, and i am fairly agressive going to doctors for evryday stuff and annual tests, the cost of this is well under the 1,800 would-be deductible, and i do not spend the monthly premiums.
unfortunately, my daughter's employer makes it mandatory, perhaps because he and/or his family holds interest in the insurance company.
the insurance company accumulate so much money that they withdraw profits for themselves.
they are really stingy in the dispensation of care related to long term care like diabetes and high blood pressure so common all mover the place.
Posted 27 May 2015, 10:07 a.m. Suggest removal
jackbnimble says...
Everyone knows that health insurance is one of the biggest rip offs in insurance. I agree with a previous comment that 48% of the healthy people are paying for the other 52% sick ones. And the costs goes up every year. I have a relative who was paying $350 per month and the deductible was so high it wasn't worth claiming, not to mention the out-of-pocket costs even when you do show up to the doctor outside of the actual claim. Could you imagine paying VAT on top of all that?
Between the doctors who can't wait to overcharge you because you have health insurance and the actual insurers who refuse to honour the claims or only pay the minimum, the consumer is left in the middle holding the bag. And by the way, the bill goes down dramatically when you tell them you DON'T have health insurance.
The health insurance industry is one HUGE rip off. Frankly I hope the implementation of universal insurance puts all the blood suckers out of business.
Posted 27 May 2015, 12:19 p.m. Suggest removal
asiseeit says...
Hey it does not matter how much the increase is to a multi-millionair like our PM. When you are as rich as him, money is not a concern. Now yinna little people just bow down and obey the man, he has your best interest at heart. LOL!
Posted 26 May 2015, 7:37 p.m. Suggest removal
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