Insurance Powerhouses Urge Govt to Roll Back GCT on Group Health

President and CEO of Sagicor the country’s largest provider of health insurance is calling on the government to roll back its planned initiative to apply General Consumption Tax on Group Health Insurance.

Mr. Byles calls the move by the government to raise $1.9-billion for additional budgetary support ‘crazy’.

The move was announced by Finance Minister Audley Shaw during his budget presentation to the House of Representatives on Thursday.

It forms part of the government’s move to plug a $13.5-billion hole in the budget.

Mr. Byles says this move will discourage Jamaicans from getting health insurances. He also says employers may reduce coverage to their employees to cover the increase in costs.

He also agrees that the health insurance market will shrink due to the tax making it difficult for the government to collect the tax it’s seeking.

Meanwhile, President of Guardian Life Limited, Eric Hosin, says the move will put more pressure on an already overburdened public health system.

He’s calling for the government to find a better solution. He says members of health insurance sector are to meet this week with Minister Shaw.