Residents unaware of insurance costs

Word of mouth and past experience with providers are the most significant decision factors while choosing healthcare providers in the UAE.

Medical insurance is now compulsory for all Dubai residents, but a research commissioned by International SOS shows that half of UAE residents are unaware of their own healthcare insurance costs.

The research conducted in April by YouGov shows that while 84 per cent of people living in the UAE underestimate the country's high level of medical inflation, 51 per cent do not know the cost of their health insurance.

The high level of medical inflation is a serious concern to employers as a growing proportion of the total cost of employment.

Medical inflation in the UAE was 9.5 per cent in 2015 according to Pacific Prime, a global health insurance broker. This means that a company's health insurance policies which cost Dh1 million in 2010 rose to cost Dh1.6 million by the end of last year, according to industry experts.

Many employers in the UAE pay for health insurance directly. Individuals can choose which doctors, clinics and hospitals to use in most plans, sometimes from a list set by their insurer.

But when they have a concern, only a few have access to independent medical advice on which healthcare provider to use, or even whether a doctor's visit is required at all, said an expert from International SOS.

How to choose the best healthcare for you

While hunting for quality healthcare, individuals should look for independent, medically-qualified information about which doctors and hospitals can provide the best possible treatment for their condition. Last year, SOS received a total of 4.6 million calls from clients around the globe seeking advice.

Mandatory health insurance set for Dubai’s small companies

DUBAI // Health insurance cover will be linked to residency visas for small companies in Dubai within weeks, Dubai Health Authority has said.

Companies with fewer than 100 employees, of which there are about 135,000 in the emirate, are in the final group of employers to have to adopt mandatory health insurance for employees, after the deadline previously passed for larger companies.

Companies should now present their employees’ health insurance certificates along with the other required documents when renewing visas, said Dr Haidar Saeed Al Yousuf, director of health funding at DHA, to The National’s Arabic-language sister paper, Aletihad.

Dr Al Yousuf added that DHA will be launching a healthy behaviour incentive programme that offers incentives to insured people who follow a healthy lifestyle that reduces their risk of diseases.

New mechanisms and systems have also been developed, in particular to prevent health insurance abuse. These will be added to the emirate’s health insurance system and will be implemented ahead of fines for violations beginning next year.

DHA intends to implement a system that links payment to quality, with a view to prevent health insurance fraud and abuse.

Currently, 85 per cent of people in Dubai have health insurance.

So far, 99 per cent of employees at the 300 large companies and the 3,000 to 4,000 middle-sized companies in the emirate benefit from health coverage.

DHA will launch an intensive awareness-raising campaign in mid-October aimed at promoting the health insurance system. It will cover local government authorities, public places and some private-sector companies.

Companies not complying with Dubai’s mandatory health insurance face hefty fines

DUBAI // Businesses failing to comply with the Dubai Health Authority’s mandatory health-insurance plan face hefty fines, and new visas will not be granted for employees until they fall in line.

Phase two of the plan, which includes about 3,000 companies with between 100 and 999 employees, began on August 1, ensuring that another 600,000 people now have health insurance.

It has also emerged that the national health insurance company, Daman, will soon expand its services in the Northern Emirates, beyond its existing 450 providers in the area.

The improved cover will benefit employees in Ras Al Khaimah, Ajman and Umm Al Quwain.

A recently opened Daman branch in Sharjah has been performing well and has encouraged the call for more regional branches.

Daman’s chief executive for business operations, Dr Sven Rohte, said a broad portfolio of insurance programmes meant the insurer was well positioned to cope with the expansion.

Compulsory health-insurance schemes in Abu Dhabi and Dubai have also meant more business for insurers, and hope among residents in other emirates that this will be replicated across the country.

Phase three of the insurance mandate in Dubai will cover dependants of employees, with a June 31, 2016 deadline for compliance, after which there will be 100 per cent coverage in the emirate.

In addition to dependants of expatriates, this phase will include employees of smaller companies and domestic workers.

Dr Haidar Al Yousuf, the director of health funding at the DHA, said businesses yet to comply with phase two of the scheme would be penalised.

“Strict enforcement is now taking place in partnership with the General Directorate of Residency and Foreigners Affairs,” he said.

“Certificates of health insurance now need to be submitted to them as part of the visa process.

“For companies that fall under phase one and two of the insurance law, no new visa can be submitted without insurance any more.”

Although not yet mandatory for companies to extend insurance to spouses, dependants and domestic workers, basic packages ranging from Dh625 to Dh800 have been arranged by the DHA.

The mandatory roll-out began in Dubai in February last year, when just a million of the city’s estimated population of 2.3 million had insurance.

Dr Al Yousuf said a small number of companies in Dubai were yet to sign up to the scheme and would be contacted and hit with a penalty notice.

“The penalties will be greater than the cost of the insurance, so it will make sense for them to comply with the regulations.

“They have already passed the deadline, so the longer they spend without insurance, the greater the penalties will become.

“If they are still not responding, we will refer them to the licensing entities to withhold their licence.”

Bre Hill, a regional human resources manager at MediaCom, which employs about 120 people in the Mena region, said: “Access to quality health care is a fundamental right and we have ensured this is something that is part of our core benefits for all staff. We support our employees by offering an inclusive policy for all, with direct billing at major health providers in the UAE.”

Exact details of the fines to be imposed have not yet been announced, but they will rise every month that businesses operate without insurance.

No Dubai visas without medical insurance: Dubai Health Authority

The mandatory insurance scheme linking application for a visa in Dubai to medical insurance is now in place, the Dubai Health Authority (DHA) has confirmed.

Residents applying for a new visa or visa renewal must be able to demonstrate that they are covered by medical insurance, unless they are part of the last phase of the rollout of the scheme, which looks at a deadline of June 2016.

Employees of companies contracting more than 100 employees must comply with the new rules, which are in place since the beginning of this month.

Medical certificate

When applying for a new visa or visa renewal, a medical certificate must be presented.

The medical certificate is a document provided by the insurance company stating that a person is covered by medical insurance, explained Haidar Al Yousuf, Director of Health Funding, DHA.

"All insurance companies should be able to provide this document free of charge.

"When visiting the General Directorate of Residency and Foreigners Affairs (GDRFA), this document must be presented along with other documents required for a visa or visa renewal.

"When applying online, there is an option to upload the document when submitting the application," he continued to explain.

According to the director, there was a minor change made to the system after the new rules were in place.

"Whereas the system first asked for the document with an upload option reading 'other documents', it now reads 'scan of the health certificate'."

However, al Yousuf assured that as employees are sponsored by their respective companies, the application procedure will be carried out by the company.

On the same note, the company is responsible for the provision of medical insurance, and if this is not provided on time, any potential fine for overstaying would come to the company, he explained.

Visitors to Dubai

Visitors to the emirate will also be required to have a medical insurance coverage upon entering Dubai, however, details of this part of the scheme are yet to be announced.

"There will be a comprehensive system in place and the details of this system will be announced at a later stage."

Currently, visitors applying for a visa through the GDRFA are already required to purchase medical insurance upon purchasing a visa.

However, this rule does not apply to everybody, as some individuals are sponsored by organisations or do not require at all.

"There are other groups that are currently not covered by this rule, but they will be under the new system," said al Yousuf.

The official date for the linking of the visa to medical insurance was August 1, 2015. However, the GDRFA and the typing centres employees in the emirate were not aware of the new rule when asked by Emirates 24|7 on August 3.

"The online application procedure had to be fine-tuned, but once that was done the system was in place. It is now fully implemented," said Al Yousuf.

Currently phase 1 and phase 2 of the mandatory scheme have been completed, covering companies’ with more than 1,000 employees on their sponsorship and companies with 100 to 999 employees.

Companies with less than 100 employees, and spouses, dependents and domestic workers are part of phase 3 of the rollout.

"We are still counting but it looks like the population that is covered by medical insurance now stands at 2.7 million. We expect that 3,000 companies, consisting of a total of 600,000 employees have complied with the rules."

Green light for mandatory health insurance for all Dubai workers

DUBAI // Employers will provide compulsory health insurance for every worker in Dubai under a major scheme approved on Tuesday.

The long-awaited scheme, which also covers employees’ spouses and children for as long as they live in the emirate, will come into effect next year.

It extends cover to domestic staff and visitors to Dubai.

“Health insurance is a form of security and it is very important for every individual to know that if he needs access to health care it is easily available,” said Essa Al Maidoor, director general of the Dubai Health Authority.

Valid health insurance will be a prerequisite to obtaining a residency visa.

The plan has been years in the making, originally due to be introduced four years ago, and is loosely based on the Abu Dhabi model.

Mr Al Maidoor said the Health Insurance Law was passed this week by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

“We would like to thank His Highness Sheikh Mohammed and we are committed to fulfil his vision and ensure every individual knows that if he needs access to health care, it is easily accessible,” he said.

“The law is fundamental to ensure smooth delivery of basic health insurance to everyone living in the emirate, which roughly means more than 3 million people, including nationals and residents with Dubai visas.”

Mr Al Maidoor said the DHA had studied 12 of the best health insurance systems in the world.

It will take about three years for the population to be fully covered, with about a third now insured. The Government will be responsible for insuring UAE nationals.

Coverage will be rolled out in phases from next year until mid-2016, with all workers requiring at least the essential basic package.

Mr Al Maidoor said the average cost of providing the basic insurance would be about 1.5 per cent of an employee’s salary and employers would have the option to top up the basic package.

The plan to insure visitors to Dubai will be introduced in the later stages.

The law will ensure growing investment in the healthcare sector in Dubai and the UAE, and was the product of “very, very hard work” by those involved, Mr Al Maidoor said.

He said the DHA had wanted to ensure everything was ready before launching the scheme.

“Anything like this has to be done right and properly, without any negative impacts,” Mr Al Maidoor said. “Our role is to guarantee a proper, comprehensive service.”

Abu Dhabi, the only other emirate with mandatory insurance, has 98 per cent of its workers covered. Daman is the main insurer in the emirate.

All Dubai workers will be given insurance cards to replace their DHA cards, said Dr Haider Al Yousuf, director of health funding at the authority.

“For residents, the health insurance law sets forth the employer’s responsibility to secure insurance to cover the employees he sponsors,” Dr Al Yousuf said.

Only registered insurance companies with health insurance permits from the DHA would be able to provide insurance.

“This is to provide everyone with the basic right to health care in a well regulated model,” Dr Al Yousuf said.

“This stems from the Government’s fundamental goal to provide happiness and security to the people of the country.”

He said the law stipulated the roles and responsibilities of all stakeholders.

Failure by employers to provide insurance carries fines of between Dh500 and Dh150,000. Repeated breaches carry a maximum fine of Dh500,000.

Under the DHA’s original plan, employers would pay the Government between Dh500 and Dh800 a year for each employee, who would register with an outpatient clinic for basic healthcare services.

The plan was delayed partly because of the economic downturn. A new proposal, in 2011, cut out the Government, requiring companies to buy private health insurance for their staff.

As in Abu Dhabi, Dubai is operating an online clearing house for every claim.