Budget: $56.25 Million To Invest In Healthcare
This year’s budget commits an additional $56.25 million to invest in healthcare, the 12-month waiting period for new HIP & FutureCare policyholders to access the Personal Home Care Benefit will be eliminated, and the prescription drug coverage for HIP and FutureCare policyholders will increased.
The relevant part of the budget statement said said, “The Government is committed to introducing Universal Healthcare. This year’s budget commits an additional $56.25 million from the Consolidated Fund to invest in healthcare for Bermuda’s residents. These funds will see additional investments made to the Health Insurance Department [HID] to support the expansion of the Hospital Insurance Programme [HIP] and FutureCare, additional funds to the Bermuda Hospitals Board, additional investments to ensure the launch of Universal Healthcare in 2026, and funding for the Government Employee Health Insurance Scheme.
Finalising Universal Healthcare to Launch in 2026
“Universal healthcare has been a longtime goal of the Bermuda Progressive Labour Party. This goal requires the resources necessary to ensure that changes to our healthcare system are well planned and executed to minimise the challenges faced by those persons currently insured, underinsured, or uninsured. $3 million of this additional funding will be allocated to boost the human resources required to implement this initiative in 2026.
Funding Boost for the Health Insurance Department
“Last year, the Government used funds from the excess borrowing account to freeze the Standard Premium Rate for the third year in a row. This action shielded families and businesses from additional costs during a period of high global inflation. This year, we are moving beyond freezes and making investments to improve the healthcare benefits available to Bermudians. Through an allocation of $13.25 million from the Consolidated Fund, this Government is delivering on the pledges set out in the Progressive Labour Party’s 2025 Platform — transforming healthcare to make it more accessible, affordable, and preventative. Mr Speaker, this investment will expand coverage in the following ways:
Elimination of Waiting Periods to Access the Personal Home Care Benefit
“First, which will be welcome news to many in Bermuda, we will eliminate the 12-month waiting period for new HIP & FutureCare policyholders to access the Personal Home Care Benefit. Mr Speaker, as our population ages, access to affordable home healthcare becomes increasingly essential. Under the current system, newly enrolled HIP/FutureCare members had to wait an entire year to access Personal Home Care benefits — even when immediate support was urgently needed. That will now change.
“By removing this waiting period, new policyholders will be able to receive assistance to help defray the costs of home-based care services when they need it most. While this benefit will significantly ease the financial burden for families, it does not cover the full cost of private home care. It is designed to assist families, supporting them in providing care while helping to reduce the pressure on hospital services and long-term inpatient care.
“This reform represents fairness in action — helping seniors to age with dignity in their own homes and providing vital support to Bermudian families who may need assistance caring for a disabled family member. It is also sound fiscal management: timely access to home care reduces hospital re-admissions, eases demand on inpatient beds, and leads to lower healthcare costs over time.
Expansion of Prescription Drug Coverage for FutureCare & HIP
“This year’s healthcare investment will also fund the expansion of prescription drug coverage for HIP and FutureCare policyholders. Though we have increased access to prescription coverage over the last few years, many Bermudians, particularly our seniors, continue to face financial barriers when trying to access essential medications.
“This additional funding will increase the coverage limit for HIP from $1000 a year to $3000 and increase the FutureCare limit from $3000 to $5000 a year. By enhancing prescription drug coverage, we will make it easier for individuals to manage chronic conditions like diabetes, heart disease, and hypertension — leading to better health outcomes and reduced reliance on costly emergency care.
Expansion of Annual Examinations for FutureCare & HIP
“Preventative care saves lives. As we promised in the recent election campaign, this Government will introduce and expand coverage for annual health exams for all HIP and FutureCare clients. Regular annual checkups catch potential health issues early, before they escalate into costly medical emergencies. Ensuring that every Bermudian under HIP and FutureCare has access to an annual preventative health exam, with no out-of-pocket costs, is a transformational shift toward a healthier Bermuda.
“These initiatives are not just good policy — they reflect our values. They are directly delivering on the pledges contained in the PLP 2025 Platform: expanding HIP and FutureCare to make healthcare more accessible, reducing the financial burdens faced by seniors and working families, and building a healthcare system focused on prevention and fairness.
“However, Mr Speaker, we must also be responsible stewards of our healthcare system. Medical inflation globally is forecast to exceed 10% this year, driving up the costs of medical care, equipment, and pharmaceuticals. Therefore, the Government will not be able to freeze the Standard Premium Rate [SPR] for the fourth year in a row, and it will be necessary to introduce an inflationary adjustment to the Standard Premium Rate to ensure that we can sustain these vital benefits and maintain adequate funding for the Bermuda Hospitals Board.
Additional Funding to BHB
“The Bermuda Hospitals Board funding model was changed in 2018, and I must commend the board, management, and staff for their efforts during the worst healthcare crisis in a century. It is important that Government support the Hospital to provide a high level of healthcare in Bermuda and $22 million of the additional healthcare funding will be provided to the Bermuda Hospitals Board.
“However, I must state Mr Speaker, that the Government & taxpayer cannot do it alone. When Bermuda constructed the new acute care wing it was supported by $24 million dollars of private sector fundraising by the Bermuda Hospitals Charitable Trust. The BHB has restarted fundraising activity, and I urge the private sector to assist in ensuring that our hospital can acquire the late.”
“Last year, the Government used funds from the excess borrowing account to freeze the Standard Premium Rate for the third year in a row.”
Translation: last year we had to borrow money to keep the system going because the premiums we charge do not cover the cost of medical treatment and other expenses.
A step in the right direction for the people. Wishing great success and may this benefit all parties mentioned