More than 12,000 people covered by standard health insurance plans in the Cayman Islands could face a 25% increase in premiums from 1 July if a proposal by insurer CG BritCay is approved.
The suggested increase, which is being reviewed by the Ministry of Health, Environment and Sustainability and the Department of Health Regulatory Services, would apply across all Standard Health Insurance Contract categories.
According to Coralisle Medical Company Ltd, which operates as CG BritCay, the adjustment would be the first change to SHIC rates since 2013.
In a press release on 5 June, the insurer said the increase is linked to claims experience, healthcare cost trends and increased use of advanced medical services now available locally.
The Health Insurance Commission said about 12,200 employees and dependants are currently enrolled in CG BritCay SHIC policies and could be affected by the proposal.
Health minister Katherine Ebanks-Wilks said the government recognised concerns raised by workers, families and employers following the announcement.
“Government recognises the concern that the proposed increase has generated among workers, families and employers,” she said.
“Government is acutely aware of the cost-of-living pressures facing Caymanian families, workers and businesses.
“An increase of this magnitude would have a direct impact on more than 12,000 people who rely on SHIC coverage, and we understand the concern this announcement has generated.”
She described affordable healthcare coverage as a necessity, not a luxury.
“At a time when many households are already facing increasing costs, government cannot simply stand by while a proposal of this scale is considered,” the health minister said.
“My ministry will continue working closely with the Health Insurance Commission and the Department of Health Regulatory Services to ensure that the interests of policyholders remain at the centre of this process.”
Under Sections 6(2) and 6(3) of the Health Insurance Regulations (2017 Revision), insurers seeking to increase SHIC premiums must submit detailed information to the commission, including claims history, loss ratios and projection assumptions.
The regulations require the commission to assess whether a proposed premium rate is excessive, inadequate, unfairly discriminatory or unreasonable.
If it reaches that conclusion, it must notify the insurer and may order changes to the proposed rate after conducting an inquiry, with a decision to be made within 15 working days.
Mervyn Conolly, Department of Health Regulatory Services director and superintendent of health insurance, said the review includes actuarial data, claims experience, healthcare utilisation trends and other supporting information submitted by the insurer.
“The commission is conducting a detailed assessment of the actuarial data, claims experience, healthcare utilisation trends and other supporting information provided by the insurer to determine whether the proposed rates satisfy the requirements established under the Health Insurance Act and Regulations,” he said.
“Regulation 6(3) provides the commission with clear authority to intervene and it is our responsibility to ensure that any proposed increase is evidence-based, justified and consistent with the legislative framework designed to protect policyholders.”
The commission and the ministry said they remained in discussions with CG BritCay as the review continues.
Exie Tomlinson-Panton, acting chief officer in the Ministry of Health, Environment and Sustainability, said affordable health insurance remains a priority for the ministry.
“We recognise the importance of affordable health insurance to families and businesses in Cayman,” she said.
“The ministry will continue working with all relevant stakeholders to ensure that residents’ interests remain at the forefront of this process.”
Further updates are expected as the review progresses.
