GOVERNMENT INTRODUCES EXPANDED LIFETIME HEALTH INSURANCE COVERAGE FOR PUBLIC SECTOR EMPLOYEES AND RETIREES
BASSETERRE, St. Kitts, December 16, 2025 (SKNIS): In a major step to strengthen social protection and support the well-being of public servants, Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, announced the introduction of expanded lifetime health insurance coverage for employees of the Government of Saint Kitts and Nevis, effective December 01, 2025.
Speaking during the 2026 Budget Address, Prime Minister Drew described the initiative as a significant milestone in the government’s ongoing efforts to invest in people and deliver meaningful improvements in quality of life. Under the enhanced arrangement, Government employees are now covered by an EC $1 million lifetime health insurance policy, an increase from the previous EC $750,000 triennial coverage. Active employees will continue to receive healthcare coverage as a no-cost employment benefit, with no additional charges for medical visits.
The prime minister noted that full details of the upgraded plan will be shared with employees and retirees in the coming weeks. He emphasised that retirees stand to benefit most from the changes, as the new policy is designed to ensure continuity of coverage as employees transition from active service into retirement.
Key improvements to the retirees’ health insurance coverage include lifetime protection, eliminating the automatic loss of coverage at age 75; a significant increase in coverage from $100,000 to $500,000; and the continuation of coverage for qualified dependents beyond retirement. These changes, Dr. Drew explained, provide greater security for families at a stage of life when access to healthcare is most critical.
To ensure affordability and fairness, the government will introduce a new, equitable contribution structure in 2026. The previous flat monthly contribution of $75 will be replaced with a graduated payment system, allowing some pension recipients to contribute as little as $25 per month, while others will pay nothing at all. Monthly contributions will be capped at $150, with the Government continuing to subsidize both active employees and retirees to ensure the long-term sustainability of the plan.
The prime minister also referenced feedback from pensioners, noting that survey results showed strong support for the lifetime benefit, the retention of dependent coverage, and a willingness to contribute more where possible. He said this response reflects a shared understanding of the importance of health insurance and the value of long-term security.
“December 1, 2025, marked a major step for us all,” Prime Minister Drew said. “It reflects our government’s commitment to honour those who have served this country by supporting their wellbeing at every stage of life.”
He concluded by reaffirming that the Administration remains focused on action and delivery. “We are not simply talking about change. We are following through, delivering results, and investing in our people and our progress.”