Members of the Caribbean Community of Retired Persons (CCRP), who are signed up to the organisation’s Comprehensive Health insurance Plan (CHIP), will be asked to pay increased premium rates come December 1. 

The plan, launched in 2019, is managed by Gallagher Insurance Brokers and underwritten by Sagicor.

Gallagher Group Employee Benefits Manager Odette Barrows-Gordon, speaking at the Annual General Meeting of the CCRP, held virtually from The Jamaica Pegasus hotel in New Kingston recently, outlined the position of the plan.

For the policy year beginning December 1, 2020, the plan had seen just over $1 billion in claims paid out up to August 31, 2021 as against just over J$510 million received in premiums.

“This position is clearly unsustainable, and so we have had to review the plan in order to make it viable, as the loss ratio represents 225 per cent, whereas the standard usage is around 75 per cent.”

Barrows-Gordon highlighted prescription drugs, which was the highest usage, accounting for some 71 per cent of the medical (non-dental, non-optical) premiums.

She said this level of prescription drug usage was unprecedented and alarming, and showed that more members needed to sign up with the National Health Fund (NHF).  She also pointed out Surgery and Hospital Expenses, Labs and Diagnostics, and Dental and Optical among the main elements of utilisation.

Barrows-Gordon said that, given the extraordinary level of claims over premium income, an increase in premium rate was unavoidable if the plan was to remain viable. She added that the entire Gallagher team was, along with CCRP, deeply invested in the plan.

“We know from the testimonial of members and our own journeys with members from diagnosis to treatment, that this plan has saved and is literally saving lives, and we are personally committed to preserving this plan.”

She said Gallagher was currently negotiating with Sagicor to get the best rates possible and those would be shared with the membership once finalised.

Jean Lowrie Chin, CCRP founder and executive chair, supported the call for members, and in particular those diagnosed with any of the chronic illnesses covered, to register with the NHF and by availing themselves of the benefits, help to bring down the usage on the plan.  

Saundra Bailey, chief operating officer at Gallagher Insurance, spoke to a new technology-driven customer service management system, dubbed Origami, that will come on stream as of December 1 and is intended to make payments, queries and other customer transactions simpler and more efficient.

Bailey also announced that Gallagher had secured a partnership with Courts Optical to provide a 15 per cent discount on optical products and services as of December 1. She said the company was exploring other value-added arrangements for CCRP members, including insurance premium financing, which will be announced as soon as they are finalised. JNGI General Manager Chris Hind, who also presented at the meeting, expounded on the multiple benefits of the JNGI Silver Shield Auto and Home Insurance product, offered exclusively to CCRP members. 

The JNGI Silver Shield provides members with attractive insurance coverage for their property and contents, as well as up to 35 per cent discount on motor vehicle insurance if their home is insured with JNGI.

Additionally, JNGI motor insurance policyholders receive a special personal accident benefit of up to $150,000, accident forgiveness up to $1 million and a 25 per cent discount for services provided by the JN Group, as well as valet services and 24-hour roadside assistance through free membership in the Jamaica Automobile Association (JAA).

Formed in 2010, the CCRP is a non-partisan, non-profit organisation for persons 50 years and over, with membership of more than 11,000.