Government has defended BUPA Insurance Company’s new policy which requires public sector workers to fork out $250 for medical treatment.
Describing the move as inevitable, the National Democratic Party administration noted that the $250 insurance deductible per insured took effect on April 1, 2013.
That amount is different from the fortnightly deductions from each worker’s pay.
Details of the new arrangements were outlined to the employees in a letter dated March 28, 2013 and circulated by the government’s Human Resources Department.
A copy of the letter obtained by BVI News also stated that, to help reduce the out-of-pocket expenses, “BUPA will apply a maximum of two (2) fully met deductibles ($500) per policy family annually.”
Several government workers who spoke with BVI News have claimed that the $250 insurance deductible was implemented without adequate notice and without prior consultations.
Considering the government’s proposed National Health Insurance Plan, the employees also raised questions about the likely implications for the extension of the BUPA contract.
The extension, which cabinet approved on March 20, 2013 took effect April 1 this year and will run until March 31, 2014.
The letter did not address the concerns raised by the workers covered by BUPA, but it noted that the $250 deductible was inevitable as a result of two main factors.
“BUPA has reported that there has been a significant increase in the plan usage, coupled with high physician fees charged by some providers, which has adversely impacted insurance costs,” the letter said.“To ensure continued coverage for all insured, changes to the plan and premium increases were inevitable.”
Gov’t Absorbing Premium Increase
The government further stated that, at a time when many organizations are reducing employee benefits, it has “committed to continue to absorb the premium increases for the duration of the contract extension instead of passing the cost on to the insured.
“Additionally, government will maintain its subsidy to public officers’ insurance premiums and those classified as risk officers at 100%. As a result, public officers and retirees will not pay a higher premium.”
All other features of the BVI Secure Care Plan have not been affected, according to the letter.
It noted that persons will continue to have the option to access care at medical facilities of their choice in the British Virgin Islands, US Virgin Islands and Puerto Rico.
For non-emergency medical care in the United States, the insured is required to notify BUPA and utilize a facility in the network.
“The deductible for out-of-country medical care is unchanged at the rate of $1,000 per insured and a maximum of $2,000 per policy family,” the letter noted.The government also reminded workers that, “when a medical provider’s fees exceed the Usual, Customary and Reasonable (UCR) fee for the region, members are required to pay the difference not covered by the insurance.
“Global and regional healthcare costs continue to escalate. Insured are reminded of the importance of familiarizing themselves with their plan and encouraged to make all efforts for best use of the insurance and to minimize additional costs.”
The administration further stated that it reached the agreement regarding the BUPA extension and changes to the policy, following negotiations with Hyperion Horizon Risk Solution and BUPA representatives.
The contract with BUPA, which initially took effect on April 1, 2011, was signed by the former Virgin Islands Party government.
