CABINET has approved $120 million in premiums to be paid to health insurance provider, Blue Cross of Jamaica, to cover outstanding premium increases due since March.

Minister without Portfolio in the Ministry of Finance, Senator Dwight Nelson, says that the total owed to Blue Cross in increased premiums is $219 million, representing an increase of $24-$30 million in monthly payments.

In the meantime, the minister says that his ministry has made a submission to Cabinet on the conflict over whether the contract should remain with Blue Cross, or be transferred to Life of Jamaica.

He said that Cabinet is likely to sign off on the issue when it meets again on Monday.

Senator Nelson explained that the increases in premiums were partly due to an increase of 5.1 per cent in beneficiaries since 2005. There are now 176,000 beneficiaries. However, he said that his ministry had requested an audit to confirm whether the level of increases sought by Blue Cross was fair.

He said that previously, the government paid $141 million per month to Blue Cross, including $111 million in employers’ subscriptions and $30 million for bills which exceed the subscription rate.

“Blue Cross has requested an additional $30 million, which will move the payment to $171 million,” Nelson said.

He said that the ministry is conducting an audit, in the meantime because, while the ministry has determined that there has been an increase in the number of beneficiaries, the government has to make sure that Blue Cross has in fact paid the benefits that they say they have paid resulting in the increased payments from the government.

“In the meantime, until such an audit is conducted to verify absolutely the claim, so as not to put Blue Cross out-of-pocket and to ensure that the public sector employees continue to benefit from the health scheme, Cabinet has agreed to make the interim payment,” he said.

He said that it is hoped that the audit will be completed in a matter of days.

He also revealed that Minister of Finance and the Public Service Audley Shaw has made a submission to the Cabinet on the Blue Cross/LOJ issue, which is expected to be dealt with next Monday.