Medicare-type health insurance being proposed
(CNS Business): Employers are compelled under the law to provide workers with health insurance through one of the Cayman Islands’ approved insurance providers, but after retirement many employees are finding that they are without coverage. However, the Health Insurance Commission (HIC) is currently working on a proposal for government for a retirement health insurance plan similar to Medicare in the US that people would pay into while they worked and would cover them in their golden years.
Some companies do provide for their past employees who have retired by allowing them to remain in their group insurance package, according to Superintendent of Health Insurance Mervyn Conolly. Unfortunately, he said, that is not the norm.
“The common practice is, yes you’ve worked for me for 10, 15 years but when you retire, you’re on your own,†he told CNS Business. The HIC is seeing this more and more, and so retirees have to go out and purchase individual coverage. “And of course, as you get older you have more chances of being ill with something and then your premiums are going to be pretty high,†he said.
So, in order to deal with this growing problem, the commission is currently preparing a report on this matter. In the first instance, the commission is suggesting that government makes it easier for employers to provide insurance for employees after retirement.
However, they are also proposing that during their working years people contribute to a pool of funds so they are covered for their healthcare needs when they retire. At a minimum, they should be able to go to the government-owned CINICO (Cayman Islands National Insurance Company) to get the coverage required. It would be similar to Medicare in the US, where you pay into a system and then when you retire and are no longer able to pay premiums on your insurance, you are entitled to coverage, Conolly explained.
“We believe the time has come; people are living longer and longer and more people are retiring without a good health package to protect them,†he said. Stressing that this is a plan that the HIC is still working on, he said there were many issues that have to be worked out so the minister of health will have something that is workable to take to Cabinet for consideration.
“Unfortunately, we have to start somewhere,†the head of health insurance oversight said, explaining that those individuals who are retiring now would be entitled to those benefits and government would have to subsidize them. “But we would have something in place going forward so that when people retire they would not have to worry about how that basic healthcare will be provided.â€
The retirement insurance plan could be paid to either an approved insurer or CINICO. “It could work both ways,†Conolly said, pointing to those employers who are already providing for their retired workforce. “We wouldn’t want to stop that.†Generally though, although they want to keep all options on the table, it is likely the plan would work with CINICO.
Conolly believes that it would have to be compulsory programme and if left to a voluntary participation, it just would not happen. “I think the only way that it can work is if it is required,†he said. However, whether retirement health contributions would have to be made by everyone who lives and works in Cayman or just for status holders and permanent residents is a question for the politicians, he said.
Confirming that what the HIC is proposing sounds like the beginning of a national health insurance, if only for retired people, Conolly said, “Twenty or 25 years ago this may not of been a problem, but now it’s a huge and growing problem and it’s only going to increase. People are living longer and they’re going to need healthcare benefits and access to healthcare and we need to start preparing ourselves for it. What we should understand is this is a problem that is not going away. As a country we are going to have to address it.”
When the community was small it was possible for government to fund healthcare for its people but this is not sustainable now that the population has grown, he said.
“The whole issue of access to healthcare, the provision of healthcare and making it affordable for all of our residents is no small undertaking,†Conolly noted. “It is a challenge that all countries are wrestling with – how to provide good quality healthcare to citizens at a reasonable cost.â€
Category: Local Business
The HIC and Government desperately need to implement some viable system for retirees to obtain good health insurance at reasonable rates as a NATIONAL PRIORITY. Mr. Mervyn Conolly is correct that many companies do not provide extended coverage to retirees – even at the retired employee’s full expense (to retain benefit from group coverage). However, this is not exclusive to the private sector as Mr. Conolly’s comment may have inferred – as a policy, NO Government SAGC keeps retirees covered beyond the extent of the Law. This a serious lapse of concern for retirees’ general well being and compliance with the Law.
Further, it is the Health Insurance Commission which gave insurance companies approval to add up to 50% surcharge on premiums for pre-existing conditions. I know a retiree who was recently quoted almost CI$40,000 per year for a health policy for themself and spouse (excluding vision). The least costly quote was in the the range of CI$20,000 p.a., excluding dental and vision. Really, how long can a retiree be expected to survive on their retirement savings and/or pension if they have to pay an average of CI$30,000 per annum for health insurance.
For the HIC to aggresively push forward with their intentions and correctly advise Government so that it will be promptly adopted and implemented would be a small comfort to their giving insurance companies a blanket approval to bleed retirees.
Of all the high costs of living affecting the Cayman Islands, most people focus on CUC but ignore that insurance companies are the biggest factors and reap the greatest benefits at our expense.
This will only work if only Caymanians and permanent residents are covered. The present system with CINICO where any permit holder who is a walking heart attack can be covered as long as they have been refused by two insurance companies is not sustainable. Sorry if that is harsh but we have to be able to look after our own before we can even thing about looking after others.
We need to start somewhere with the insurance needs of retired Caymanians. We don’t have to emulate the US Medicare system but we can use the concept as a guideline. For the moment retired US Citizens/Legal Residents can go to the doctors and receive relatively good medical attention by using Medicare and paying the co-pay by supplemental insurance or cash. In Cayman if you don’t have CINICO, an expensive insurance plan or a spouse that is a Seaman or Government employee, after retirement don’t get sick or you will find yourself in a world of grief. If I had known the difficulties that I would face after retirement I would have migrated to Europe and gladly paid my taxes 15 – 18 years ago because now that I need good insurance and medical care I would have it. The government is very right in trying to get a insurance plan similar to Medicare and if it does not it will be a big mistake
The CIG needs to stop adding additional entitlements that can’t be paid for. Using Medicare as an example the US insurance program is forecast to go broke between 5-15 years from now. This is what they want to emulate? Now if a politician came out and said, what we want to do is pull money out of our guest workers while they are here to pay for the healthcare of older Caymanians now that would be a great idea. As long as the bulk of workers are no longer in Cayman after they retire this will work.