Philipsburg:--- The Windward Island of Chamber of Labour Unions met over the weekend to further discuss the situation regarding pensioners. In a press release, the unions said even though long overdue, it was very nice to hear that senior citizens will soon be entitled to Health Care Coverage through the SVB.
The fact that this new law is being proposed at the eve of “separate status” we must consider its potential implications for country St. Maarten. Along these lines, the Windward Islands Chamber of Labor Unions (W.I.C.L.U.) met in an urgent meeting over the weekend to which Mr. Neil Henderson was an invitee, particularly since the subject matter is one of Insurance.
In the meeting, it became evident that some key questions must be answered by Parliament.
Based on data from the Central Bureau of Statistics (CBS) 2009, the Netherlands Antilles has 29.228 senior citizens.
To name a few questions that should be answered prior passing this Law are;
A. What is the projected premium income for the coming 20 years?
B. What are the projected expenses over the coming 20 years?
Lets’ all consider the following math.
Say, we have 30.000 senior citizens in the Netherlands Antilles.
- Say the average AOV income is Nafls.500.= per month (since we need to live 45 years in the Neth. Ant. to qualify for the max. AOV income, which is currently Nafls.726.-)
- Say the premium is 10.4% of Nafls.500.- = Nafls.52.= per insured p/m.
- Say the annual premium income is 30.000.x 52 = 1.560.000,00 p/m.x 12 months = 18.720.000.00 p/y
- Say, statistically we live up to age 76 in the N.A. it will mean that we should calculate having to pay premium for a period of 16 years.
This will result in 16 yrs. x 18.720.000.00 = 299.520.000.00
When St. Maarten goes “Separate Status” in a few months, how do we secure that the premiums are collected (should the S.V.B. seize to exist in its current form?
To give an example of the financial responsibilities towards the Senior citizens, only (thus excluding the employees and their dependants whom must also receive benefits):
- If each senior citizen consumes an average of Nafls.9.000.00 in health care services per year we must secure the funds based on this simple math:
- 30.000.00 Senior Citizens x Nafls. 9000 = 27.000.000.000.00 x 16yrs. = 432.000.000.00
When St. Maarten goes “Separate Status” in a few months, how much of this debt will we be responsible for?
We must make it perfectly clear that ABSOLUTELY no one is against the senior citizen having medical coverage, FORTHWITH.
However, let us also give due consideration to make good on these promises to:
- The senior citizen,
- The employees under S.V.B. level and their families as well as,
- The sole proprietor, which include bus and taxi drivers
Our senior citizens have been faced with embarrassing situations in distant and recent past where medical benefits have been denied. In addition, we recently had a Court ruling that basically justifies care being denied if the insurer falls short of certain obligations.
We are sure that everyone would like to know if this Law is going to be revisited in an effort to avoid recurrences.
This article is not per say scientific but merely a means of provoking each stakeholder and/or beneficiary of SVB medical coverage to start thinking hard.
In fairness to the beneficiaries of this proposed new Law, it is the firm believes of the W.I. Chamber of labor unions that Parliament holds information sessions in St. Maarten and allows all stakeholders and beneficiaries to not only understand the TOTAL implications of this proposed Law but more importantly give their input.
We also feel that due consideration must be given to the possibility of allowing St. Maarten the option to take care of its own senior citizens.
This is we believe is a justifiable option since we only have 2693 senior citizens.
Windward Island Chamber of Labour Unions
