TALKS to stop the Isle of Man's reciprocal health agreement from ending in April 2010 failed in January.

Chief Minister Tony Brown MHK ruled out funding the extension of the deal – at a cost of three million pounds – after a meeting with the UK Secretary of State Andy Burnham.

The failure meant residents travelling off the Island after April 1, 2010, would no longer be entitled to free healthcare.

In a statement released by Mr Brown he said the UK Department of Health had determined the reciprocal health agreement no longer represented value for money.

Mr Brown explained that Andy Burnham was understanding of the Island's position but had made it clear that it was the firm policy of the UK government not to fund the cost of healthcare either for Island residents visiting the UK of for UK residents travelling outside the UK.

Steve Rodan, speaker of the House of Keys, said it was a "sad day for the Isle of Man".

Update: A new reciprocal health agreement was signed in September. Click here for more information.