Affordable Health Insurance Transformation in UAE
Health Insurance Overhaul in UAE's Northern Emirates: New Basic Package from Dh320
Starting January 1, 2025, a new health insurance system will be implemented in the northern emirates of the UAE, ensuring that 100% of private sector workers have health insurance. The new regulation affects employees in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah, aiming to make an affordable, basic insurance package available for every worker.
This system is already mandatory in Abu Dhabi and Dubai, ensuring full coverage for private sector employees. The new regulation is expected not only to enhance workers' health security but also to contribute to the stability of the labor market in the region and improve employee welfare.
Basic Insurance Package: Key Details
The new insurance package is available from Dh320 and covers essential healthcare services, including outpatient care, hospital treatments, diagnostic tests, and minor procedures.
Hospitalization and Surgeries
a. Copayment: 20%
b. Maximum per visit: Dh500
c. Annual limit: Dh1,000
d. Costs above the limit are 100% covered by the insurer.
Outpatient Care
a. Copayment: 25%
b. Maximum per visit: Dh100
c. Repeat medical visits for the same illness within 7 days are copayment-free.
d. Prescription copayment: 30%, annual maximum Dh1,500.
The package is particularly beneficial for those who frequently use healthcare services, as the costs of repeated treatments and medications can be significantly reduced.
Why is the New System Important?
Health insurance has long been a priority in the UAE’s private sector, but until now, it was only mandatory in Dubai and Abu Dhabi. The new regulation extends this benefit to the northern emirates, where many workers previously lacked adequate insurance. This measure:
1. Provides more accessible healthcare services for low-income workers.
2. Reduces employers' costs while improving employee well-being.
3. Supports the growth of the private sector, as health security enhances employee satisfaction.
Social Impacts
According to the UAE Ministry of Health and Human Resources (MoHRE), the new system aims not only to improve the health protection of workers but also to ensure basic health insurance for all private sector employees. This is especially important for small businesses where insurance coverage has not been widespread.
The introduction of the new regulation is expected to reduce financial burdens stemming from healthcare expenses, particularly among low-income workers.
Conclusion
The new health insurance package could bring revolutionary changes to the lives of workers in the northern emirates of the UAE. The low copayment and relatively affordable price make it possible for everyone to access basic healthcare, while the system ensures long-term sustainability. For employers, the message is clear: employee well-being is directly linked to business success.
