Health Insurance Fund: Transfer to the Consolidated Fund

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A decision made on 27 April 2011:

Decision Reference: MD-TR-2011-0038
Decision Summary Title:	Transfer from the Health Insurance Fund to the Consolidated Fund		Date of Decision Summary:	8th April 2011
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Approval of the process for the transfer of £6.131m from the Health Insurance Fund to the Consolidated Fund for Health and Social Services income for Primary Care Services, the ability for H&SS to spend the additional funds and the delegation of payment approval to the Treasurer of the States		Date of Written Report:	8th April 2011
Written Report Author:	Head of Financial Planning		Written Report : Public or Exempt?	Public
Subject: Health Insurance Fund (HIF): transfer of funds to the Consolidated Fund to fund primary care by the Health and Social Services Department.
Decision(s): The Minister approved the control and monitoring process to transfer £6,131,000 from the Health Insurance Fund to the Consolidated Fund for use in funding primary care service delivery by the Health and Social Services Department. The Minister also approved the delegation of the payment approval of quarterly Health and Social Services Department invoices to the Treasurer of the States. The Minister also gave approval for the Health and Social Services Department to spend the additional income received through the process on primary care service delivery.
Reason(s) for Decision: The proposal for a £6.131m transfer was included within the 2011 Business Plan. Further, during the debate of P125/2010, the Minister for Social Security clarified that the actual transfer of funds would be for primary care services, currently provided by Health and Social Services, which would free up funds within the department’s cash limit to fund the growth and balance of savings and user pays which were required. The report to P125/2010 included a schedule of the likely primary care services to be claimed. The Minister for Treasury and Resources committed to manage the transfer from the HIF to the Consolidated Fund and to only release funds on receipt of evidence from Health and Social Services confirming expenditure in respect of primary care services. The Minister for Social Security and the Minister for Health and Social Services have both agreed the process.
Resource Implications: The process itself will reduce the Health Insurance Fund by £6,131,000 and increase Health and Social Services income by an identical amount. Health and Social Services will have the permission and ability to spend the additional income transferred.
Action required: The Treasurer of the States to approve the transfer of funds from the Health Insurance Fund to the Consolidated Fund upon receipt of invoices from Health and Social Services.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: