HAMILTON, Bermuda, CMC – The Bermuda government says it will introduce strong anti-monopoly legislation to safeguard competition and prevent harmful market concentration.
In addition, the government said it will advance pharmaceutical pricing reform by enhancing the existing national drug formulary to both reduce and expand transparency in costs.
“Together, these measures will ensure that Bermuda’s pharmaceutical market remains competitive, fair, and centered on patients, not dominance,” said Health Minister Kim Wilson.
“The government remains committed to its duty to protect consumers, support healthcare professionals, and ensure that every component of our health system operates in the best interests of the people of Bermuda.”
She told legislators that the David Burt administration had made it clear during the traditional throne speech of 2025 and the general election campaign that year that it intended to introduce modern antitrust and competition legislation in Bermuda.
“The purpose of this legislation is straightforward and principled: to ensure that no commercial arrangement, in healthcare or in any sector of our economy, results in a de facto monopoly, restricts fair competition, or disadvantages smaller providers who play a vital role in serving our community.”
Wilson said that in a small island economy such as Bermuda’s, markets are naturally concentrated and without appropriate legislative safeguards, consolidation can occur quickly and with system-wide consequences.
“Competition law is not about punishing success; it is about protecting the public interest. It ensures that innovation thrives, that consumer choice is preserved, and that market power is not exercised in ways that undermine affordability, fairness, or access.
“This proposed legislation will not target any single entity. Rather, it will establish clear, fair, and transparent rules that promote a level playing field across all sectors. Its purpose is to protect Bermudian consumers, preserve innovation, support small and medium-sized enterprises, and ensure that economic efficiency does not come at the expense of fairness or access.”
Wilson said that it is within this broader policy framework that the government considers the recent public discussion surrounding Allshores’ proposed preferred pharmacy network, which has brought into sharp focus serious concerns raised by Bermudians and policymakers alike about patient choice, affordability, safety, and the long-term structure of Bermuda’s pharmaceutical market.
“These concerns are neither abstract nor theoretical. They speak directly to how our people access essential medicines, how care is coordinated, and how we ensure that no single entity can dominate a market as small and interconnected as ours.
“In a jurisdiction like Bermuda, where our healthcare ecosystem is compact and highly interdependent, even one corporate decision can have system-wide consequences. The creation of Allshores through the merger of BF&M Limited and Argus Group, a transaction widely reported in the press as a significant consolidation of market share, has fundamentally reshaped the insurance landscape.”
Wilson said that the merger and the vertical integration now extending into pharmacy networks underscore why Bermuda must modernise its competition framework.
She said that while establishing a preferred pharmacy network may be presented as an internal business decision, pharmacies are not simply retail outlets.
“They are an integral part of the healthcare continuum. They ensure continuity of care, provide patient counselling, support medication adherence, and serve as accessible points of contact, particularly for seniors and vulnerable residents.
“Any change that materially alters how patients access their medications must therefore be examined not only through a commercial lens, but through a public interest lens,” she said, adding that this is why on Tuesday, February 24, she directed the Bermuda Health Council to formally request that Allshores implement a 60-day deferral of its pharmacy network policy to May 1.
‘This pause is essential to allow comprehensive review, data analysis, and structured dialogue. Decisions of this magnitude must be guided by evidence and public accountability,” she said, noting that the Health Council has previously warned of the structural implications of vertical and horizontal integration in Bermuda’s health system.
“A small and saturated domestic market, limited upstream competition, reliance on high-cost importation channels, and escalating pressures from specialty and advanced therapeutics characterize our pharmaceutical sector.
“ In such an environment, further concentration of market power, whether through mergers or contracting practices, can reduce competition, limit consumer choice, and create conditions for price escalation.”
Wilson said Bermuda currently lacks modern, dedicated antitrust legislation governing business combinations and market dominance, adding, “This legislative gap leaves our economy vulnerable to excessive concentration and anti-competitive practices.”
She said the government is moving forward with the introduction of strong anti-monopoly and competition laws and that the focus is on preventing any business arrangement from creating an effective monopoly, stifling competition, or placing smaller healthcare providers at a disadvantage within the community.
“Strengthening competition requires proactive oversight of mergers and acquisitions, scrutiny of dominant market positions, and the authority to prevent anti-competitive conduct before harm occurs.
“We must have legislative tools to investigate and, where necessary, prevent mergers or contracting structures that consolidate excessive market power. Fair markets are not self-executing in small jurisdictions; they require thoughtful regulation to protect consumers and innovation alike.”
Wilson said competition reform must also work hand in hand with pharmaceutical pricing reform, and that is why the government has been advancing solutions such as pricing reforms and policies, such as the implementation of the national drug formulary, in collaboration with importers and retainers.
She said the formulary introduces clearer pricing discipline, strengthens transparency, and reduces unnecessary price variation across pharmacies.
“It supports evidence-based prescribing, protects consumers from inflated costs, and ensures that Bermudians are not paying more than necessary for essential medications, no matter which pharmacy they purchase from.”
Wilson said health reform in Bermuda must be transparent, balanced, and sustainable.
“We cannot allow excessive consolidation to undermine patient access or erode public confidence. Nor can we ignore the economic realities facing families who struggle with the high cost of living and high medication prices,” she added.
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