Health Insurance Fund: Transfer of funds to the Consolidated Fund

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A decision made on 22 November 2012:

Decision Reference: MD-TR-2012-0100
Decision Summary Title:	Transfer from the Health Insurance Fund to the Consolidated Fund in 2012		Date of Decision Summary:	8th November 2012
Decision Summary Author:	Head of Financial Management, Accounting and Reporting		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 transfer of £6.131m from the Health Insurance Fund to the Consolidated Fund for Health and Social Services income for Primary Care Services and the ability for H&SS to spend the additional funds		Date of Written Report:	8th November 2012
Written Report Author:	Head of Financial Management, Accounting and Reporting		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 transfer of £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 gave approval for the Health and Social Services Department to spend the additional income received on primary care service delivery.
Reason(s) for Decision: The proposal for a £6.131 million 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 both agreed the process. £6.131 million was transferred in 2011. The Health Insurance Fund (Miscellaneous Provisions) (Jersey) Law 2011 permitted the States to approve a further transfer in 2012 on a proposition brought by the Minister for Social Security. The 2012 transfer was agreed by the States in the 2012 Annual Business Plan (P123/2011) on 15th September 2011 and P185/2011 on 18th January 2012.
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 an invoice from Health and Social Services.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: