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Government denies cut in health insurance benefits

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

THE government yesterday denied claims that it was seeking to reduce health insurance benefits for public sector employees in the lead up to National Health Insurance, adding that it will consult with “representatives of the various public sector unions” should any adjustments occur.

In a statement yesterday, the Ministry of Finance said there will be no reductions in “health insurance benefits for any public servant, including law enforcement officers and nurses.” However, the statement said that benefits will “shift in a phased fashion to NHI”.

As such, the statement said, there may be “changes to premiums paid by the government on the selective coverage that exists now”.

The statement also said that the ministry anticipates “savings from reduced administrative costs” and from “existing surpluses that some plans have accumulated”.

The government’s statement was in response to concerns expressed by social media users on the government allegedly “stripping” government employees of their health insurance coverage. Facebook users also claimed that the health insurance block of the government’s 2015/2016 budget has been cut in half.

“This year, there has not been, nor will there be reductions in existing health insurance benefits for any public servant, including law enforcement officers and nurses,” the government’s statement said yesterday.

“As adjustments occur, the government will consult fully with representatives of the various public sector unions. The government is committed to providing quality health insurance for all public servants.”

The government’s statement added: “Existing plans are fully funded by the government and only managed by private administrators. The Ministry of Finance, however, expects savings from reduced administrative costs, and from existing surpluses that some plans have accumulated.

“Benefits will also shift in a phased fashion to NHI, and with such, there may be changes to premiums paid by the government on the selective coverage that exists now.”

The government has proposed a January 2016 implementation date for NHI.

Officials have said the health scheme will be phased in over a few years.

The government has set aside $60m for NHI in the new fiscal year, however this money will be mainly used to improve existing health care services in the public sector.

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