HEALTH is threatening to take legal action to recover more than £300,000 from a health insurer.

The department yesterday set a two-week ultimatum before it acts.

The WPA has been refusing to pay private patient bills for months.

It said the Health and Social Services Department was raising prices for private patients at the Princess Elizabeth Hospital by 23% – which it considered unjustified and unacceptable.

A WPA spokesman said offers of part-payment made to Health had been turned down.

A Health spokesman yesterday revealed how big the bill had become.

‘The outstanding amount owed to the States of Guernsey is more than £300,000.

‘Due to the nature of insurance claims, only WPA will know how much they are due to pay and how much the member will have to settle directly.’

The spokesman said the Health board had refused the WPA’s offers for good reason.

‘WPA offered to pay the 2009 accounts at 2008 rates – this was rejected as it was felt that by accepting payment at 2008 rates, the HSSD would effectively be offering WPA a discount.’

He said that in November, following a review of charging practices, the HSSD board had agreed to align its charge structure and policy to best practice operated across the UK.

‘All of the insurers, including WPA, have accepted that this is a welcome development. Only WPA has raised concerns at the overall cost of this realignment.’

WPA corporate communications director Charlie MacEwan said the insurer had been told the move would be cost neutral.

‘We were given information that it would be cost neutral and clearly it is not.’