Insurance companies to cut staff because of NHI
This is according to the Insurance Association of the BVI (IABVI) in a press release circulated throughout the territory. It stated that while members of the IABVI would like to offer its customers supplementary or top-up plans it does not feel this would be affordable to most customers due to the expense of NHI.
This news site sought the confirmation and further explanation of some of the leading insurance companies in the territory and, according to those who responded, they are likely to be facing a situation where they would have to send home a very large percentage of their staff in certain departments.
No one agreed to have their names or company mentioned but, according to one, in the case where they have approximately 12-14 employees they may only be able to retain the services of 2 when NHI comes on stream.
NHI’s effect on insurance agencies
It was further explained that insurance agencies/companies are of the opinion that they will not be able to sustain a profitable book of business in order to continue to offer continued employment to their current employees in those departments. “The answer to that is very simple. We do not believe that there are enough persons to buy a top up insurance plan,” said one senior manager of a prominent insurance company.
That person said that in addition to that insurance companies are going to find it extremely challenging to offer a plan at a sensible price, “Because the persons who can buy this policy is a very small group of persons and therefore it’s not enough premium coming in to pay these claims. They would have to try and charge a premium which is dependent on a small number of persons who’ll be able to participate.”
The very sentiments were shared by the IABVI as they explained further that members of the IABVI currently insure approximately 62% of the population of the VI using the figure of population of the Ministry of Health and Social Development of 28,280. There are approximately 17,600 lives insured by insurance firms, and through agents and brokers in the VI.
“Based upon an average health insurance premiums across the BVI, the cost between the employer and employee for NHI is generally more expensive than the cost of private health insurance…This does not take account the cost of paying for any non-working spouses or dependents in your household which will increase the cost of NHI,” it said.
18,000 residents eligible to pay NHI
According to the release, the IABVI believes there are 18,000 residents who will be eligible to pay toward NHI. Based upon an average salary of $40,000 per annum and 100% compliance of collection, NHI would collect $54,000,000 per annum.
In addition, Insurance Association members deal with: An average of 10,526 medical and pharmaceutical claims per month which is 126,315 per annum; an average of 526 pre-certifications per month which is 6,315 per annum or 17 per day (including weekends). Pre-certifications are the cases which need pre-approval before treatment; these are the cases that the Medical Review Committee (MRC) will be reviewing each month/year. In the case of an emergency these need to be dealt with immediately. All other cases require a 48-hour turnaround.
For those eligible for NHI the IABVI believes that this would amount to: 16,749 claims per month; 200,983 claims per annum; 837 pre-certifications per month; 10,043 per annum.
“The IABVI know that NHI does not cover all the health insurance needs but due to the cost of NHI, the IABVI does not believe that most residents will be able to afford top-up or supplementary plans,” it said.
.png)
Follow Us On
22 Responses to “Insurance companies to cut staff because of NHI”
dem should kill ayo!
Insurance for all and not just for the rich! I can now be insured for a lot less instead of paying this high premium I am paying now.
Is about time someone look out for us retirees.