By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Bahamas Insurance Association’s (BIA) chairman yesterday warned employers and individuals with existing private health insurance plans not to “prematurely” drop that coverage as a result of National Health Insurance’s (NHI) introduction.
Emmanuel Komolafe told Tribune Business that persons who elected not to renew their existing private insurance policies would be taking “a great risk”, due to the multiple uncertainties associated with the Government’s NHI scheme.
He said it was “extremely important” for the interests of those with private medical insurance that they maintain that coverage, as there was no guarantee that NHI would offer the same primary care benefits/services.
Mr Komolafe added that catastrophic illness coverage, and overseas care, both of which are included in many existing private health insurance packages, are not included in NHI’s initial phase - the $100 million allocated for the first year of primary care.
He thus suggested that dropping private health insurance cover for NHI could leave many Bahamians exposed if they were suddenly struck by a major illness.
And further danger could result if, after dropping their existing coverage, Bahamians were suddenly diagnosed with a chronic illness. This would either result in higher premiums, or the exclusion from coverage altogether, were such persons to seek private insurance again in the future.
Mr Komolafe told Tribune Business that in the absence of new NHI legislation, and the continued lack of clarity over what services would be included in the scheme’s primary care offering, it was in the interests of privately insured Bahamians to maintain their policy ‘status quo’.
“My view, and this is extremely important, is that people with health insurance will do well to retain it and keep those policies,” the BIA chairman said.
“At least with private insurance you know what you’re getting. You get a second opinion, know what is covered and can go overseas. NHI is a new programme and it’s going to take time to feel the effects.”
Mr Komolafe said the insurance industry’s NHI alternative had recommended the removal of ‘pre-existing conditions’ as a barrier to obtaining coverage.
Currently, Bahamians diagnosed with existing or chronic illnesses either have to pay a much higher premium for health insurance, or are denied coverage altogether.
The BIA chairman, though, warned that this problem could be experienced by those who elected to drop their private health insurance coverage early in anticipation of NHI’s introduction.
“If you give it up and are diagnosed with an existing condition, that becomes a pre-existing condition,” Mr Komolafe explained. “Your premiums will go up and you may not get insurance again.
“There are quite a number of risks to individuals if you make a decision about private health insurance coverage prematurely.
“We just don’t have the information [on NHI] and don’t want persons to panic. The people with insurance now would do well to keep their insurance.”
Mr Komolafe reiterated that the insurance industry had called for universal health coverage (UHC) to be introduced via a much narrower “scope and approach”, with the Government focusing on the 50 per cent of the population that lacked or had inadequate health coverage.
He described as “a fair comment” the suggestion by Tribune Business that the Government’s NHI legislation statement over the New Year’s Eve weekend, foreshadowing its introduction to Parliament, had raised more questions than answers.
This is because it talked about allowing Bahamian employers and individuals with existing private health insurance coverage to maintain those policies - the first time the Government has talked about permitting this.
“In the first phase of coverage (primary care), Bahamians will receive a number of health services such as prevention, visits to the doctor, and other basic health needs free of cost and with no new tax in the initial phase,” the Government statement said.
“Those with existing health insurance will not be required to give that up.”
Mr Komolafe said he was “almost shooting in the dark” as to what this meant, due to the absence of the actual NHI legislation.
The Government’s statement also seemed to contradict Dr Delon Brennen, the deputy chief medical officer and NHI project director, who said on Guardian Talk Radio: “It doesn’t make sense for an employer to continue to pay for primary care services through private health insurance when that part of the service is being delivered through NHI.”
Mr Komolafe, though, said that while the Government may not mandate that people with existing private health insurance relinquish it through the NHI Bill, many will probably do so on economic grounds.
“Not requiring people to give it up does not mean there’s no impact on people with private health insurance,” the BIA chairman told Tribune Business.
“It’s just that will people pay twice for the same thing? That’s where the decision is made, with people basing it on economic rationale.”
Comments
asiseeit 8 years, 3 months ago
Three and a half years in and Perry and his Kleptocrates are getting ready for the election. They have not done a dam thing for suffering Bahamians as they have been to busy feathering their own nests. Now they are rushing this nation killer of NHI into effect and they expect people to trust and believe them. NEVER! They have lied, cheated and stolen far to much from the Bahamian people, they belong in Fox Hill. As long as the PLP is in power only a fool or an idiot would ever trust the government of The Bahamas!
TalRussell 8 years, 3 months ago
Silly but pretty much expected fear mongering by the Comrade Spokesman's for The Bahamaland Insurance Association’s (BIA.
asiseeit 8 years, 3 months ago
So TAl what makes you think that NHI will be anything but another Bahamas government DISASTER? Give me one reason, any reason you think it will succeed and not turn into a complete waste/slush fund/vote buying scheme, like any other government agency.
asiseeit 8 years, 3 months ago
Another question, why would you believe ANYTHING the P.M. as head teller of untruths has to say. How many times does the guy have to be proven to be dishonest before you catch on? Have you ever heard the saying "Fool me once, bad on you. Fool me twice, bad on me", and do you understand what it says?
Islandgirl 8 years, 3 months ago
This is actually a legitimate concern, whether you care to admit it or not. Catastrophic health care, major medical issues nor oversees care is included in this proposed scheme. if you were honest, you will admit that as it now stands, there is nothing offered by this government that is not already provided for in the public health care system. The only thing is now that they will blatantly swipe the money from your salary. How you can continue to blindly support this is unbelievable. Fear mongering? The only thing mongering any fear is perry christie and this ruthless, thieving, undisciplined and clueless cabinet. how can you look at the absolute destruction of this country wrought under this PLP administration and clap and yell 'yes perry, yes!' People like you are scary.
sheeprunner12 8 years, 3 months ago
That doesnot affect most Bahamians ......... only 30% of Bahamians have health insurance and those are civil servants or quasi corporations or elite private companies ......... why do you think Perry has picked this issue??????? ............. for its broad voter appeal for election votes!!!!!!!!
TalRussell 8 years, 3 months ago
Comrades note the PM has no Horse in the BahamaCare race but can you say same about all the man's over at The Bahamas Insurance Association’s (BIA)?
GrassRoot 8 years, 3 months ago
right. no Horse in the BahamaCare race? I'd say that is his only and last floating device that may keep him politically afloat, after he tossed Baha Mar into the Ocean.
TalRussell 8 years, 3 months ago
Comrades did this follow the dire doom predictions which proceeded "VAT"?
Statement Published in The Tribune on Monday, May 25, 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.
ThisIsOurs 8 years, 3 months ago
YES. When your premium is over 400 per month, yes, you will see that increase in premiums. There are MANY people paying individual health insurance premiums VAT is no joke.
Prices in general have been skyrocketing since VAT. just like the doom and bloomers predicted. Business owners are complaining that they have to pay VAT on business license, electricity, health care, phone bills so their costs have gone up. Hence VAT is the direct cause of price increases across the board. So predictable and so predictably ignored by the proponents
Economist 8 years, 3 months ago
To do the NHI now is just a political gimmick.
It would appear that the government does not care whether the NHI will work or not just as long as they can say they did it. If they lose the next election they won't have to worry about its inability to provide health care or the financial ruin that it inflicts.
They know that it will take years to stop the financial hemorrhaging in the health system. If they really cared about giving good quality care to all they would fix the system.
To fix the finances of the health system takes political will and leadership, to introduce NHI does not require either.
themessenger 8 years, 3 months ago
Just one question Mr. Komolafe; as it will be mandatory for all citizens to register for NHI and as we will have to pay our contribution to the government willy nilly, what incentives will the insurance industry be offering the public to stay with their existing private coverage, the cost of which is exorbitant now to say the least??
Fitmiss 8 years, 3 months ago
The messenger you have raised a valid point. Will the insurance company decrease premium amounts, include additional services on to what we are now receiving? I doubt they will do anything except raise their prices to try to recoup any loss.
GrassRoot 8 years, 3 months ago
It may be a legit question, but timing is wrong. NHI offers nothing for now. If the NHI legislation will allow private insurance to exist next to NHI scheme, then and only then the question will have to be answered. So NHI is - for the ones that have private coverage - not even a consideration. for all others it is pie in the sky.
TalRussell 8 years, 3 months ago
Comrade Komolafe is not about tell his Insurance Associations thousands of Policy Holders why it is that BahamaCARE premiums will in fact be used to subsidize the insurance companies Life and Extended Care profits for hundreds years way into year 4050..
Komolafe more than most, should know why BahamaCare will become the Profit Gift Horse to the Insurance Industry that will never stop fattening their wallets.
These insurance men's ways does need praying to Jesus - for long-term forgiveness.
GrassRoot 8 years, 3 months ago
whats wrong with you? NHI is not even a consideration for now. or have you walked into PMH to receive services covered under NHI by now? This is all a BS discussion. Dont buy private insurance if you don't like or drop it if you have it and believe NHI will pay your doctor in the U.S., Grand Bahama or Abaco, if something happens or you get sick.
MonkeeDoo 8 years, 3 months ago
I don't know what experience this negativity about private health comes from but when Bahama Health shells out 100,000.00 for me and another 100,000.00 for my wife I have a boatload of loyalty to them. This is for surgery at a hospital in Fort Lauderdale that is a palace compared to PMH. My employees can go to PMH if the Government push ahead with this but I will stay with private coverage thanks very much. You pay for what you get and you get what you pay for. Simple !
TalRussell 8 years, 3 months ago
Comrade I guess you and your Dear Wife were not among over 3000 workers over past 3 years who lost their benefits offered through their workplace private insurance coverage because smaller companies could no longer afford to even subsidize premiums that kept increasing year after year.
It most cases it had nothing do employers being bad or cheap people but the heartless profiteering philosophy insurance owners.
I wonder all the time why the PM refuses to unleash the financial details they hold about insurance companies?
I think it is time talk all their profiteering business.
Workers who paid in for many years lost all their monies paid in....every red cent....many never even made a single claim against the insurance companies.
ThisIsOurs 8 years, 3 months ago
"Lose every red cent..paying in for years?", are you referring to CLICO or City Market?
MonkeeDoo 8 years, 3 months ago
Yes, the premiums do increase and they increase in line with the medical costs. Do you think for one second Tal that once GHI starts they won;t start racheting up the premiums too. Some people are naive and others are just plain stupid. Lee Iacocca was the first to publicly acknowledge that there is no such thing as a free lunch. And he was right !
TalRussell 8 years, 3 months ago
My Dear Comrade Friend. We will thank Jesus in years ahead that unlike private insurance - BahamaCARE will not be in the profiteering business. We have a nation to finish building from Pindling's beginnings and it will be impossible if there ain't no BahamaCARE cards in ya wallets and pocket books.
Islandgirl 8 years, 3 months ago
Please do not bring Pindling into this, because he started the mess that this country finds itself in. I wish the Tribune would start to run a series "Your Bahamian History" with articles and historical facts about how things truly were, the true roots of the PLP, the things this man did, the many victims this man left in his wake, the loss of the Bahamian work ethic ehere they no onger want to work toward something, but expect a handout or to grab it by any means necessary, and the like to wipe away this pure revisionist history that pervades the land. Children in school today have no idea what he was truly like nor the things he did or allowed to go on here all for his and his cronies' benefits. Please explain the palace call Lyn-Mar on a PM's salary; the fact that no one was punished in the 1984 Commission of Inquiries' findings and those are not even frost on the iceberg. Stop joking. As for 'BahamaCARE will not be in the profiteering business', of course it will be. For a certain few, like every governmental department benefits a few. When Glen Beneby talked about the yearly $100 million of wastage that occurs in the public health care system that is unaccounted for, where do you think it goes? Come on man, you have to know better than that. There is no defence to what perry is trying to do here. Further destroying the country in an attempt to win an election (which considering his age and health he is not even sure he may make it to) is not acceptable, nor is it responsible. You know that too.
Economist 8 years, 3 months ago
Tal, good point about subsidization. It would be a lot cheaper if government paid a subsidy of say up to 70% of the insurance premium.
They already have $100 million that they are wasting in the current system. The private insurance companies wouldn't waste $100 million.
TalRussell 8 years, 3 months ago
Comrade as an Economist I would presume you must be aware of the financial data the government holds about the profiteering privately run and owned insurance companies?
Ask if you think they should have long ago been made pay income taxes on millions in earnings?
Shouldn't the government take off the gloves to respond in kind to the insurance companies who have clearly demonstrated they are most willing do battle to block BahamaCARE, and respond with the full force years financial data collected?
Economist 8 years, 3 months ago
No, but I am aware of the all the data (audits and losses that have been made public) they have on money loosing government agencies, department and corporations totaling over $200 million a year and do nothing about.
I think that government should take their gloves off and respond by cleaning up the mess that they have helped to create.
GrassRoot 8 years, 3 months ago
agree, I would feel more comfortable if the Government were to take on and nationalize other business where they can do less damage, like the bottling business or manufacturing mattresses for the Bahamian market.
Economist 8 years, 3 months ago
All you need to do is see what has happened in any enterprise that the government has been involved in. They have all lost money and huge amounts of money. Between Batelco, Water & Sewerage, Bahamasair, ZNS, the Hotel Corp, BEC, and so on, they have probably lost over $1 Billion Dollars.
If you like the idea of government owned enterprises, the only place left is North Korea.
MonkeeDoo 8 years, 3 months ago
Tal: all of these local companies publish financial statements and they don't lie. It irritates me when Commonwealth Bank publish such juicy profits and that is all made on the back of poor people with consumer loans at only God knows what percent. Cable Bahamas too make juicy profits. I believe what someone accused you of. You are a bloody Communist reading The Little Red Book. And you right here in our midst. You are probably a bloody Cubian sent here by Castro.
TalRussell 8 years, 3 months ago
Camarada Mediante el Socialismo!
Economist 8 years, 3 months ago
Folks, I don't want to rain on your parade but China, the Soviet Union, Vietnam, Cambodia and even Cuba are giving up and joining the capitalist system.
The evidence is very clear, you let government run and own as little as possible if you want to be able to put any food on the table.
TalRussell 8 years, 3 months ago
Comrade Economist you know how tell the difference between a rich man's and a poor man's. You looks down at their feets see the quality shoes they are wearing. Yet the poor man's spends double the money or his cupboard shoes than does the rich man spends on his all genuine leather shoes. You go figure hey?
I can even teach my Comrade Economist friend lots bout poor peoples money spending habits.
These are the same people you wish deny BahamaCARE. Why is that?
Economist 8 years, 3 months ago
Yeh Tal, and you and I are not that far apart in our desire to make things better for our fellow Bahamians. We are just approaching it from different angles.
I would very much like to see us have good health care for all.
But we need a holistic approach. That will include the need to tax the bad foods such as fast food so that we can drop the duty on fresh and organic foods. For those of us who grew up in the Out Islands, as they were then, we got to eat fresh fish and vegetables out of the yard. We had seasons for a number of foods.
Obesity is our biggest problem with respect the NHI and yet no one is addressing it. Yes, and the huge hemorrhaging of cash at PHA.
Already, the UK says that Obesity will bankrupt their health system. We have to deal with it.
You got any ideas on how we deal with it?
TalRussell 8 years, 3 months ago
Oh yes Comrade Economists we are "that" far apart in our thinking.
Who do you think the families are mostly who will be buying your taxable foods?
I am not buying how you truly want see BahamaCARE become a reality.
Would you support a FREE Lunch Program for ALL public school students?
Economist 8 years, 3 months ago
Tal, the reason I want to tax those foods are to make the better foods cheaper and more available. Even at todays prices I can buy flank steak and cut it into strips, which I then take to work along with my fresh tomatoes, green pepper, celery and lettuce. When I divided the cost over the week it was less that I would spend if I went to Kentucky or Wendy's (about $5.00).
My point is that the same families can eat a more healthy diet. If we have a more healthy nation we could, in fact, afford a very good health system.
I seldom get sick so my health Insurance (yes I have one, just) does well out of me.
With respect to free lunch, only to those who truly need it. We are already fortunate that our education costs, even the private schools, is cheap compared to other nations.
Check out the type of cars some of these so called poor people drive, or go by their house and see the big flat screen (I still don't have one, but my children went to a private school and got a good grades). Are they really in need or are they looking for someone else to pay so they can enjoy their earthly treasures.
themessenger 8 years, 3 months ago
Economist I agree with all that, my point is I will have to pay the payroll tax whether I use NHI or not. While My family and I currently enjoy the benefits of private insurance,which we pay through the nose for, for many families it will simply become a matter of economics; they have to pay the government like it or not but having paid Caesar is there enough left to pay Paul ?
Economist 8 years, 3 months ago
That is why I like Tal's idea of subsidies. $100,000,000.00 would pay the full insurance policy for 20,000 Bahamians. That is only the sum the PHA wastes each year. Shut down Bahamasair (where we the taxpayer loses an average of $42,000 a year for each of the 700 employees) and you have another 6,000 Bahamians covered.
Now make that a 70% subsidy and you have covered most of those who are uninsured. The rest could be paid for as we are currently doing.
There are so many ways that this can be done at very little or no cost but the politicians, well they are politicians and they just tax and spend until it dries up.
NHI may just push us over the edge to a down grade, devaluation and the massive unemployment that will follow (look at what happened in Greece). Like us they never thought it would happen.
TalRussell 8 years, 3 months ago
Comrade ThisIsOurs why you asking me your question "Lose every red cent..paying in for years?", "Are you referring to CLICO or City Market?"
I think your questions would best be refereed to the red regimes lead Fisherman's who was forced into political exile to Cooper's Town.
by TalRussell
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