Pay Dh600 insurance per dependent in Dubai

• Image Credit: Virendra Saklani/XPRESS
• Mandatory rule: Eisa Al Maidoor, Director-General of DHA and Dr Haidar Al Yousuf, DHA’s Director of Health Funding

Dubai: Dubai residents, whose employers do not provide family insurance, will soon have to pay a minimum of Dh600 towards each of their dependent’s mandatory health insurance, following a new law announced on November 26.

According to the Health Insurance Law Number 11 from 2013, the mandatory health insurance will apply to Emiratis and expatriates across the emirate, including free zones, from next year. It will be a pre-requisite for obtaining a new residence visa or renewal as employers and individual sponsors will have to submit evidence of insurance coverage with the visa application.

The law, to be rolled out in phases till 2016, will also apply to visitors to cover specific emergency services.

Announcing the provisions of law, Engr Eisa Al Haj Al Maidour, Director General of Dubai Health Authority (DHA) and Deputy Director General of Dubai Municipality, said the government will be responsible for covering Emiratis, while “employers will be responsible for their employees and sponsors for their sponsored individuals who do not work for an employer”.

The benefits are required to be not less than an “essential benefit package” whose value is around Dh600. “With his, every individual in Dubai will have access to quality healthcare. The mandatory health insurance will also help maintain the sustainability of the emirate’s healthcare services,” Al Maidour said.

Dr Haidar Al Yousuf, DHA’s Director of Health Funding, said details of the “essential benefit package” will be released soon. “For now, I can say that it covers basic emergency, primary, secondary, maternity and surgical procedures. It has been designed to ensure adequate access to health without burdening employers or sponsors,” said Al Yousuf.

He said employers must bear the cost of enrolling employees in an insurance scheme without any deductions to them. They must also ensure the validity of the coverage throughout their employment. In case an insurance cover expires before a visa is renewed, the employer has to bear the cost of healthcare, including emergency services.

He said the cost of the total package for employers will be around 1.5 per cent of the total salaries. Over two million uninsured people in Dubai, including blue collar workers and domestic help, are expected to benefit from the new law. Violations carry fines ranging from Dh500 to Dh150,000 in addition to other penalties. Repeat violations carry a penalty of up to Dh500,000. Violators could also face civil or criminal action.

Widely welcomed

Although details of the law are yet to be made public, its introduction has been welcomed by healthcare facilities and residents.

David Hedley, CEO of Mediclinic Middle East which runs the Mediclinic City and Welcare Hospitals, said: “This is a giant leap forward for Dubai as everyone will have access to affordable and quality healthcare. I congratulate the government on its bold step and I am confident the insurance system will be implemented successfully.”

Dr Ahyam Refaat, founder of healthcare consultant Accumed PM, said: “This long-awaited legislation is a step in the right direction. It will add to Dubai’s growth and public health and safety.”

Filipina receptionist Maria who works at a private company said: “This is good news because I am not insured and constantly live in the fear of falling sick. I cannot afford a good doctor here.”

Indian marketing executive D. Bhaskaran, who is also not insured, said: “I invariably fly to India to get treatment. I hope my employer provides me adequate cover.”

Lebanese resident Sam said: “I welcome the law although I will have to pay for my family’s insurance. My company provides insurance only to me. I will now have to factor the cost of covering my wife and two young children and hope that it will be less than what I am currently spending on their doctor visits.”

Price rise fears over health insurance in Dubai

• Image Credit: Supplied
• Rising: insurance companies will push up cost of premiums

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Dubai: The mandatory health insurance announced by Dubai Health Authority (DHA) last week has raised fears of a possible hike in prices of services and products across the board including hospitals, clinics, retail outlets and even restaurants in Dubai.

Dr Ayham Refaat, founder of insurance consultant Accumed PM, said one of the main challenges for the market when compulsory health insurance rolls out next year will be to maintain financial sustainability.

“Mandatory coverage will mean greater, even over-utilisation of healthcare services as more people will go to a doctor. It remains to be seen if hospitals and clinics will increase their charges and if insurance companies will push up their prices and premiums.”

He said insurance for all could impact the cost of living. “Health cover will impact the balance sheet of companies and businesses as they strive to go beyond the basic coverage to be competitive in the market. This in turn may push them to increase prices of their products or services.”

Sanjay Tolani, director of Goodwill Insurance Brokers, said: “We are waiting to see how reinsurers will react, but we can expect a rise in premiums. It’s a Catch 22 situation. There will be over-utilisation of the basic minimum package of Dh600, but costs will have to be recovered and the question will be how to spread the risk over the total population. The good news is there’s a bigger population to play with.”

The premise that insurance will push up the costs of products and services hinges on how established a business is. The smaller the enterprise, the bigger the chances of that happening.

A cafeteria owner in Karama, who did not want to be named, said: “I don’t know the details of the law yet, but from what I gather, even if I get a basic package of around Dh1,000 per employee, it will mean an additional expense of Dh30,000 (two-year cover) against the 15 visas of my staff. That’s a big amount.”

Asked if he would increase the prices on his menu, he said: “Who knows, inflation may also go up. We will have to wait and see.”

Manoj Kisani, director of Red Lounge, a chain of four beauty parlours in Dubai, whose 49 employees are already insured for Dh700 a year, said: “For us, insurance cost is a small percentage of the total operating costs which we are capable of meeting. But for companies that are on a very lean profit structure, it may be different. They will tend to pass on the additional costs to customers.”

Dr Ashok Kapoor, specialist cardiologist who owns the Getwell Medical Center in Bur Dubai, said there is a need for a uniform insurance tariff system. “Currently, tariffs vary widely from clinic to clinic and area to area. There is no reason why they should because medical tests, kits and manpower are the same everywhere. We need to arrive at uniform tariffs.”

Asked if he would hike prices at his clinic, he replied in the negative. He said employers will spend a little more to insure employees, but will benefit in the long run as productivity increases. “There is less absenteeism as the evaluation of sick leaves becomes more streamlined and transparent. We have around 60 staff, all of whom are already insured.”

David Hadley, CEO of Mediclinic Middle East, also ruled out a fee hike at the group’s City and Welcare Hospitals and its nine clinics in Dubai. “I can assure you we will not be increasing charges because of the new law. All our 2,500 employees are already covered and I can tell you health insurance has a lot of positives like reduced absenteeism and access to quality healthcare that offset costs.”

Danny, a textile salesman, feared his employer may not provide adequate cover. “What’s the use if I get a bare minimum insurance? Healthcare is so expensive that a single visit to the doctor can cost Dh1,000 with consultation fees, tests and medicines.”

An Indian distributor of a small enterprise said he will have to go beyond the minimum cover of Dh600 a year to be able to attract and retain good staff. “The extent of coverage will be a big factor in the coming days.”

Dubai enforces travel health insurance policy for visitors

The ruling will only be applicable starting early next year, residents applying for visit visas. 

Starting this month, visitors entering Dubai are being charged a minimum of Dh45 for a travel insurance certificate without which a visit visa is not being issued.

The move comes after the introduction of a recent government ruling that made health insurance compulsory for visitors and residents.

Though health officials from Dubai Health Authority (DHA), while announcing the new Health Insurance Law for Dubai last week, said that the ruling will only be applicable starting early next year, residents applying for visit visas toldKhaleej Times on Tuesday that the law had already been enforced.

Charges for an individual health policy period of up to 30 days single entry visas are Dh45; for 60 days the charges are Dh75; 90 days are Dh95 and for 180 days the charges are Dh185.

Visitors will only be covered for emergency medicine (accident and sickness) for upto Dh150,000. However, those aged between 70 and 84 years will have to pay a deductible of Dh2,000.

The travel insurance also covers for up to Dh7,500 in case of death in the UAE and for repatriation of remains.

Starting next year, all residents and visitors to Dubai will be required to have a compulsory health insurance cover to be provided by their employers or sponsors.

Officials said last week that resident or entry visas will not be processed unless an essential health insurance plan is submitted.

Roughly, two million people in the Emirate are expected to benefit from this scheme, including blue-collar workers, many of whom are currently without any basic health cover. Nearly a million people in Dubai are already insured.

While the health cover for the UAE nationals will be provided by the government, employers will be responsible for resident expatriate workers and their dependents. Those sponsoring their wives and children will have to buy individual health packages separately. Domestic workers will also have to be covered.

A basic health insurance package for residents will cover maternity, emergency, surgical procedures, etc but will not include procedures such as cosmetic surgeries.

Residents had a mixed reaction to the new ruling. While many said the extra cost added up to a big number, others said that the insurance cover would mean a peace of mind. “Life is unpredictable… and it is good to know that in case of any adverse event, we have medical cover,” said 34-year-old Mushtaq Amin, who is currently job hunting in Dubai.