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Government of Jamaica pumps $40m into health scheme
published: Wednesday | October 10, 2007
Nelson
THE NUMBER of beneficiaries under the Government Employees Adminis-trative Services Only (GEASO) health scheme and their families, increased by more than 9,000 persons in the last two years, resulting in Government being forced to pay an additional $40 million per month for health insurance.
Senator Dwight Nelson, Minister without Portfolio in the Ministry of Finance, said at a post-Cabinet press briefing yesterday that the increase of 5.1 per cent in direct employers and their beneficiaries took place in the period leading up to the September 3 general election.
"We looked at the period prior to election - January 5 to July 7 - and it was over that period that the staff complement was increased," Senator Nelson explained.
Over 176,000 persons are now covered under the scheme for which the Government pays Blue Cross Jamaica Limited $141 million per month.
Owing to the increase in the number of beneficiaries under the scheme, Blue Cross demanded of the Government an additional $219 million to cover costs it claimed to have incurred.
Increase in beneficiaries
"The basis of this claim is an increase in the number of public sector employees who benefit from the scheme," Mr. Nelson said.
He said Cabinet approved an interim payment of $120 million to Blue Cross and an additional $40 million monthly.
The minister said that while Cabinet has approved the payment, the Ministry of Finance has commenced an audit to determine whether Blue Cross's claim is valid.
"We are conducting an audit to ensure that Blue Cross has in fact paid the benefits that they say that they have paid, which has led to an increase in the demand from the Government," Mr. Nelson stated.
He said that Cabinet will, at its next sitting on Monday, determine whether Blue Cross will retain the contract for the administration of the health scheme. Mr. Nelson said that a submission has been prepared by the Ministry of Finance and will be discussed at Cabinet next Monday.
The Ministry of Finance recommended in June, that the more than $2 billion contract be awarded to Life of Jamaica Limited, a decision which was stayed after it triggered strong protest from the GEASO Monitoring Committee, comprising unions representing the 65,000-strong government employees.
published: Wednesday | October 10, 2007
Nelson
THE NUMBER of beneficiaries under the Government Employees Adminis-trative Services Only (GEASO) health scheme and their families, increased by more than 9,000 persons in the last two years, resulting in Government being forced to pay an additional $40 million per month for health insurance.
Senator Dwight Nelson, Minister without Portfolio in the Ministry of Finance, said at a post-Cabinet press briefing yesterday that the increase of 5.1 per cent in direct employers and their beneficiaries took place in the period leading up to the September 3 general election.
"We looked at the period prior to election - January 5 to July 7 - and it was over that period that the staff complement was increased," Senator Nelson explained.
Over 176,000 persons are now covered under the scheme for which the Government pays Blue Cross Jamaica Limited $141 million per month.
Owing to the increase in the number of beneficiaries under the scheme, Blue Cross demanded of the Government an additional $219 million to cover costs it claimed to have incurred.
Increase in beneficiaries
"The basis of this claim is an increase in the number of public sector employees who benefit from the scheme," Mr. Nelson said.
He said Cabinet approved an interim payment of $120 million to Blue Cross and an additional $40 million monthly.
The minister said that while Cabinet has approved the payment, the Ministry of Finance has commenced an audit to determine whether Blue Cross's claim is valid.
"We are conducting an audit to ensure that Blue Cross has in fact paid the benefits that they say that they have paid, which has led to an increase in the demand from the Government," Mr. Nelson stated.
He said that Cabinet will, at its next sitting on Monday, determine whether Blue Cross will retain the contract for the administration of the health scheme. Mr. Nelson said that a submission has been prepared by the Ministry of Finance and will be discussed at Cabinet next Monday.
The Ministry of Finance recommended in June, that the more than $2 billion contract be awarded to Life of Jamaica Limited, a decision which was stayed after it triggered strong protest from the GEASO Monitoring Committee, comprising unions representing the 65,000-strong government employees.