An executive at Colina Insurance Limited says medical expenses in the country could rise between six and eight percent next year.
Marcus Bosland, resident actuary at Colina, said recent inflation trends indicate that Bahamians will likely be paying more for healthcare. The steady increase in medical expenses over the years will not halt going into 2013, and it should remain in line with an overall spike in the cost of living.
"There's no reason to expect that costs will not continue to go up in the same way that they go up in everything else we consume," Bosland said. "The recent trends are in the order of six percent per year in terms of cost, which translates into slightly higher rates in premiums and that is probably of the order I expect."
Bosland's comments came at Colina's annual health forum, which was held at the Sheraton Cable Beach Resort late last week. The free public education seminar focused on medical insurance and touched on various areas, ranging from the overall benefits of having a plan to why medical insurance costs rise.
Bosland offered insight on the variables that affect pricing. He mentioned that bringing this sort of awareness to the public is essential to providing the best service to its clients so they won't be faced with high medical bills.
"It's important to know [why medical costs rise] so you can plan for it," he said. "Oil prices have been increasing over the year and medical prices are no exception and medical insurance prices as a consequence is no exception. People have to understand that because when you are faced with an increased price you need to make a decision in the context that you understand that the prices are going up."
The resident actuary added that relief for medical insurance prices could come due to a domino effect created by tariff reductions on medical equipment, with EKG machines and filters the only items that were changed to duty free, according to the 2012/2013 budget communication. He said if other medical devices can experience some type of reductions, it could slow the rise of medical expenses, which will in turn mean better insurance rates for Bahamians.
The educational forum was very timely, according to Vice President of Finance for Colina Catherine Williams. She felt the event was the perfect setting to engage in dialogue about the dynamics of medical insurance.
"We do get a lot of questions from time to time from our clients, and a lot of the time it's important for us to make sure our clients understand what they purchased and what type of benefits they received," Williams said. "The more clients understand what they have bought and what they are entitled to the better it is for us to ensure that we service them properly. Where we see a need to educate our clients, we do the best we can."

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