NOTICE OF INCREASE IN PREMIUMS
At the Annual General Meeting of the Barbados Association of Retired Persons which was held at the Lloyd Erskine Sandiford Centre on July 23rd, 2011, members of the Golden Health Plan were advised that ICBL has given notice of an increase in premiums with effect from September 1, 2011. The increases are as follows:
- The premium for individual coverage has been increased from $123.50 per month to $140 per month.
- The premium for family coverage has been increased from $238 per month to $267 per month.
These increases have become necessary due to the increasing claims experience the Plan has been incurring. For example, the claims experience for the year 2010 to 2011 was 92%. This means that for every dollar of premium received by ICBL, 92 cents have been paid out in claims.
This situation is clearly not sustainable for ICBL, since other expenses, such as commissions, administrative expenses and reinsurance, still have to be covered.
The existing premiums have been in force for 3 years, since August 2008, while many companies increase health insurance premiums every year.
We hope that Members will understand that these increases are unavoidable.
Based on feedback from Plan Members, the Board is of the view that it may be a good idea to have some educational sessions so that Members gain a better understanding of Plan benefits, the general operation of the Plan, and the impact of claims on premiums.