Social Security Minister Judy Martin and Health Minister Richard Renouf said the depletion of the Health Insurance Fund was a matter under review after a leading GP criticised government proposals to use some of the money contained within it for other projects.
Yesterday, Dr Nigel Minihane and former Social Security head Ann Esterson spoke of their concerns over the ministers’ decision to ‘raid’ the HIF of £44 million over the next four years to fund the planned Jersey Care Model and digital health programmes.
They warned that if the fund was drained then GPs may have no choice but to increase charges for appointments.
The cash is being earmarked for investment in the Jersey Care Model, which will focus on delivering more ‘care in the community’, and digital health-modernisation projects.
Under current plans the fund, which held £107 million last year, will be reduced to £47 million by 2025 – enough to cover one year of its expenditure, which is largely on subsidies for GP bills and prescriptions.
It is expected that the fund’s outgoings will rise as Jersey’s population becomes increasingly aged towards the 2030s and Dr Minihane voiced concerns that it could run out within a decade.
In a joint statement, Deputies Martin and Renouf said: ‘Ministers are very much aware of the continuing health-cost pressures on the HIF and the Consolidated Fund and have committed to a major review of future health costs and how those costs should be funded in the future in the 2022 Government Plan.
‘This review has already started and it includes a full review of the future role of the HIF. The review will run throughout 2022 and decisions will be taken during 2023.
‘This is in line with the existing States decision which endorsed the Jersey Care Model in 2020 and which also committed to “a sustainable funding model for health and social care, to be operational by the end of 2025”.’
An extract from the Government Plan on the topic of ‘sustainability of health funding’ says that healthcare costs are expected to increase, meaning extra funding will be required.
It states: ‘It is clear that additional ongoing funding will be needed to maintain high-quality health services to a growing older population and to cover increasing costs due to advances in medical treatment and new medicines.
‘Additional costs are also expected over the next decades to cover pandemic recovery and increasing public health, primary and preventative services.
‘The Health Minister will undertake a wider health economic review during 2022 to inform funding options for increased health-care costs and for any potential new health access schemes, to be brought forward in 2023 for the Government Plan 2024-27.’
The extract adds that the current separation of the HIF from the Health Department budget is considered a ‘key barrier to long-term progress’.
It continues: ‘The current health system is undergoing a major transformation as part of the Jersey Care Model and the fees for accessing health-care services are not equal for all Islanders.
‘It is therefore important to include in the health economic review a range of options on health access schemes and their related costs and potential funding solutions.
‘Currently, a key barrier to long-term progress is the split funding and responsibility between the Health Insurance Fund and the Health Department budget. This split funding will also be addressed in the wider health cost and funding model review.’
