An increase in the deductible that government employees have to pay under their health insurance is causing concern among public officers and lawmakers.
Premier Dr. Orlando Smith and Paul Staines, chief financial officer for the BUPA insurance company — which as of 2011 insured about 6,200 government employees and their dependents — signed a yearlong extension to the company’s previous two-year contract, which expired on March 28.
The extension means that BUPA will continue to cover workers until March 31, 2014, but it also contains an annual deductible for the first tine. According to a copy of the contract on file at the High Court Registry, this means that each insured person must pay the first $250 for medical services provided within the Virgin Islands, the United States VI, and Puerto Rico, and the first $1,000 if the services are provided elsewhere.
Premium increase
Additionally, the new agreement contains a 10.3 percent premium increase, which will be borne by government at a cost of about $1.4 million, Health and Social Development Minister Ronnie Skelton said during an April 30 House of Assembly sitting.
During the “members’ private business” segment of the sitting, Third District Representative Julian Fraser spoke for several minutes about the new deductible, asking for “government to do something about this.”
“I think on this one and others the people just can’t afford it,” Mr. Fraser said. “There’s nothing around us that is going down. Everything is going up. The people just can’t afford it.”
Mr. Skelton responded that the “BUPA debacle as it is now was caused by the member for the Third’s government,” and asserted that his ministry had no choice in the matter.
“Based on that additional year’s extension, there was a percentage increase that must happen,” the minister said. “There was no option for this government to do anything about the BUPA contract.”
VICSA reaction
While Virgin Islands Party and National Democratic Party lawmakers dispute who is responsible for the present situation, the higher costs are causing a burden for government employees, the Virgin Islands Civil Service Association claimed in a statement issued Tuesday.
“The financial implications of this policy continue to place a strain on the already tight personal budgets for government employees, during what is evidently very difficult financial times,” the group stated. “While we are grateful for the position taken by the government to absolve some of this cost, we do believe that this is a pervading issue that will continue to affect public officers, their families and the social fabric of this society.”
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