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$100 Million Gov’t. Insurance Straining Resources

Prime Minister Perry Christie said the government spends nearly $100 million on insurance for public servants on an annual basis with the figure expected to increase this year as negotiations continue with various unions.

“Does anyone know what we spend on health insurance?” he asked during the Bahamas Business Outlook on Thursday.

“That’s a question I asked because we are negotiating with unions and at the end of the negotiations, you walk out of the room and that’s another bill on the public treasury because that’s what you have to negotiate.

“We’re heading towards $100 million a year. And we still have some unions that we haven’t completed negotiations with.”
Christie said the high cost of providing insurance for public servants is one of the reasons why the government is pushing for universal health insurance.

“At which stage does it make real sense since you’re financing [health insurance], to have universal health coverage and to give more equal participation to the average man who dies today because he doesn’t have access? And every year you’re adding to the $100 million,” Christie added.

The Christie administration is still committed to implementing the long promised National Health Insurance (NHI), but Christie said the plan is still under review.

The former PLP administration had pegged the cost of NHI at around $235 million annually. Health Minister Dr. Perry Gomez told The Nassau Guardian last year that the price tag is “undoubtedly” higher than initially projected.

President of the Bahamas Public Services Union (BPSU) John Pinder said yesterday unions do take into consideration what the government spends on health insurance, but noted the unions have an obligation to protect the rights of their members.

“We recognize healthcare costs increase each year,” he said.

“We are concerned, but it’s important that members have health insurance.

“In fact, all Bahamians should have health insurance.

“So they (government officials) just need to work with us to ensure that people get health insurance coverage.”

Pinder said if the government allows the unions to spearhead the medical plan, the rates would be lower. Pinder added that the BPSU also has a medical plan. However, he said it is now struggling as membership has dropped over the years.

By Krystel Rolle
Guardian Staff Reporter

Posted in Politics

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