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Insurance companies to cut staff because of NHI

- argued that expense of NHI would not allow enough persons to take out supplementary insurance
With the economy of the Virgin Islands (VI) already said to be heavily depressed as jobs are being lost every day, the Government’s move to bring into action the National Health Insurance (NHI) is likely to put more persons on the breadline. Photo: Internet Source
The controversial NHI is slated to come fully on stream in the Virgin Islands in January 2016.
The controversial NHI is slated to come fully on stream in the Virgin Islands in January 2016.
ROAD TOWN, Tortola, VI – With the economy of the Virgin Islands (VI) already said to be heavily depressed as jobs are being lost every day, the Government’s move to bring into force the National Health Insurance (NHI) is likely to put more persons on the breadline.

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.

22 Responses to “Insurance companies to cut staff because of NHI”

  • .... (26/08/2015, 15:44) Like (27) Dislike (1) Reply
    Smh ndp in ayo skin
    • Nice try (26/08/2015, 16:30) Like (18) Dislike (11) Reply
      No, gic (greedy insurance companies)
    • alpine (26/08/2015, 16:55) Like (13) Dislike (15) Reply
      You all hear Smith said we have a blooming economy nowhe taking bread out of persons mouth Ronnie bread butter on every side these people have to eat pay bills rent etc are they going to provide for them this is a dam shame
  • don (26/08/2015, 16:22) Like (6) Dislike (4) Reply

    dem should kill ayo!

  • !!! (26/08/2015, 16:26) Like (11) Dislike (2) Reply
    Why is this a must?? Why can't we decide if we want it or not??? Cause to me it makes no sense!!! N I for sure ain't giving up my Nagico insurance for this crap!!!
  • wondering (26/08/2015, 16:35) Like (13) Dislike (0) Reply
    why stay anoymous who ever you are quoting can only belong to about 4 companies. Come on talker be a man and use your company and your name. games are soooo boring. we are bored with this NHI scam and brouhaha imagine the insurance guy giving the above interview is scared of their name being public?? What the heck??
  • resident (26/08/2015, 16:36) Like (10) Dislike (11) Reply
    NDP administration needs to pull the plug on those insurance companies that wants to used NHI as an excuse to cut jobs after they have been advantaging Resedents for so long don't play with them
    • .... (26/08/2015, 22:28) Like (6) Dislike (2) Reply
      Are you like the dumbest person on the face of the earth or does your dumbness extents to space..... These companies are not using this as an excuse. You must be related to one of those intelligent Jack A**** that forcing this get rich scheme down out throats. These companies are actually helping us as well as themselves by making a statement.
  • i from here (26/08/2015, 16:47) Like (11) Dislike (23) Reply
    Well done NDP!

    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.
  • bang (26/08/2015, 18:09) Like (10) Dislike (4) Reply
    You are so stupid. What help are retirees going to get? This government is turning this country into a communist country. They will soon pass laws to imprison people who speak out. We might very well have to have another election. Somebody is about to benefit from NHI while most of the people in the territory become paupers. Too many lies. Why 7.5 percent of your income?What are the benefits for the people? None. We are suffering already and will die for want of health care. The minister and his colleagues will go over seas and tax payers will pay. How many of us will be able to go? If allowed to go we will be sent when dying to some mediocre service.It is time to stand up an let politicians know they are not our masters but our servants . The people,s voice must be heard.
  • Figures (26/08/2015, 18:26) Like (10) Dislike (1) Reply
    The private insurance interview provided more details than NHI did..
  • Buckle up (26/08/2015, 18:34) Like (6) Dislike (2) Reply
    NHI is a very good initiative--great for the country-----Review board, very bad idea--then again nothing will change no matter how much we talk--this is a very stubborn bunch--I read where one person call them the know it all bunch.--we have to live with it--it will either keep us alive, or kill us---it will either make the BVI rich, or make the BVI bankrupt----Only time will tell....No need for us to get worked up--buckle up.
  • Nagico I will miss you. (26/08/2015, 18:45) Like (9) Dislike (3) Reply
    Sad. I`ve been insured with Nagico for the past 12 years and nothing but excellence, they are great, 100 percent I gave them for good and reliable service. I am going to miss you Nagico, my heart hurts, If I could afford it, I would keep you, but I can`t. God will work something out, don't give up on your staff.
  • x (26/08/2015, 21:31) Like (3) Dislike (0) Reply
    Itll be a whole lot more than just insurance companies to start laying people off.
  • Riot (27/08/2015, 02:10) Like (4) Dislike (0) Reply
    if I remember Dr.Hannibal at large candidate warned the country about this NHI thing was coming. And it wasn't good for us in its present form. He offered some good ideas on a better way forward. But people was busy listening to party music and non disclosure. Now here it is our government is now going to force it down or throats lumps and all. We as people need to stand up and stop being so passive. And allow any government to impose unjust taxation upon us, Ayo remember the story of Robin Hood where the wicked sheriff taxed the poor people until they revolted.
    • smart (27/08/2015, 07:41) Like (2) Dislike (1) Reply
      if we are smart and I mean small businesses and others, we should not register and that will send a clear message that we are not supporting it as is. that's what you get for voting ndp all the way it would have been wiser to split your votes.
  • tretretrete (27/08/2015, 07:29) Like (0) Dislike (0) Reply
    I WONDER IF THIS INSURANCE WILL RECOGONISE OVERSEAS.
  • talk (27/08/2015, 08:53) Like (1) Dislike (0) Reply
    Talk, talk, talk that's all we BVIslanders do!!! Then hear the stupiness, 2019 far, it must stop!!! Why should we anticipate suffering, see it coming and sit down and take it like fools!! We must be stupid. We must not be afraid to speak out and protest. We need to do something before something do us. Get educated about NHI.
  • eh (27/08/2015, 11:25) Like (0) Dislike (1) Reply
    the outsiders who cant travel overseas makes this easy for the goverment ,they cant go over to the us for medical care if they dont have a visa to travel. bvi islanders can, so the goverment will push, remember roy bary say the out siders asking geting imformations which make seems like we dont care or not listening, but its high time we let the ndp know they cant give us sh..t to eat any more . we need to march for this .and say no to thus have insurerance stay with it who dont have let the ndp emdark on them and their family they still have half of the bvi population who needs to be ensured ........ hell the time have come for the ndp to stop taking advantage of us . global park have them right where hand in their pocket seven seas now run things. they are ndp advisers we must .march to the white house for some sort of solution . this is nothing like abamar care usa. the ndp to dam willful and we need to stop them. let them compell those that dont have ensurrance get nhi,
  • Yep (29/08/2015, 06:41) Like (1) Dislike (0) Reply
    I agree with eh.time for Virginislanders to march. No one should sign up come September. Note that there is a cut off point in payment. That protects the ministers and their friends pockets. Pensioners have to pay from their small pension. Barry did say 7.5percent from your income, but now they have a cut off point. Wise up people let us petition and take it to the governor.
  • vgman (29/08/2015, 20:18) Like (2) Dislike (0) Reply
    I want to be the first to say i told you so but i can't because my island voted ndp as well, now we must all reap what we have sown. Next time instead of swallowing the b.s and hating on one guy why not listen carefully to what both are saying


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