Dubai Health Insurance Premiums Rise with Benefits
Dubai Residents Face Up to 20% Rise in Health Insurance Premiums
Residents and businesses in Dubai may experience up to a 20% increase in their health insurance premiums, as insurers offer new, expanded packages that include significant benefits such as dental treatments, mental health counseling, organ transplant, and dialysis coverage. While not all insurers have raised their rates, many have already adjusted to market trends.
The Transformation of Health Insurance in Dubai
According to industry players, these new coverages make health insurance "more comprehensive" for clients. The CEO of Insurancemarket.ae stated that some insurers' premiums have risen by 10-15%, reflecting the claim experiences of 2024. However, not all insurers have raised their rates:
"Some insurers have increased premiums, especially for health insurance, while others have maintained previous prices. These variations are based on individual insurers’ claim experiences and market strategies," stated Babur.
The basic and enhanced packages’ premiums at some insurers may have increased by as much as 20%, though this seems targeted rather than an industry-wide trend.
What New Benefits Do the Packages Include?
With the adjustments, insurers offer new coverage options within health insurance packages, which were not available in previous years. The main benefits of the new packages include:
a, Organ Transplant: Coverage up to 100,000 dirhams is provided exclusively for recipients.
b, Dialysis: Coverage up to 60,000 dirhams.
c, Medications and Medical Costs: Annual medication costs covered up to 2,500 dirhams, limited to formulary products.
d, Mental Health Counseling: Outpatient coverage up to 800 dirhams.
e, Dental Care: Coverage up to 500 dirhams.
f, Repatriation Costs: The transport of deceased remains covered up to 5,000 dirhams.
These coverages comply with the updated regulations introduced by the Dubai Health Authority (DHA).
Why Are Rates Increasing?
The Managing Director of Unitrust Insurance Brokers explained that premiums for basic and enhanced packages have increased by about 20%, and around 75% of companies have adjusted their prices. The primary reason for the increase is to provide the expanded coverages that were previously unavailable.
Chauhan, an insurance expert, emphasized that the aim of the new coverages is to extend health protection for clients. These measures enable a more comprehensive approach, which can benefit policyholders in the long term:
"While it may lead to higher premiums, the positive aspect of the new coverages is that clients receive broader protection that was not available before."
Cost-sharing Requirements
Certain cost-sharing requirements accompany the expanded coverages, such as:
a, For organ transplants and dialysis: 20%.
b, For outpatient mental health counseling and prescription medications: 30%.
How Does This Affect Residents?
The increase in premiums by insurers is not uniform, making it important for residents to compare different providers and packages. The new coverages can be beneficial for those who require regular mental health or dental treatments, but may increase the insurance burden for those who rarely use these services.
Conclusion:
In Dubai’s health insurance market, alongside the rise in premiums, insurers offer significant new benefits that provide broader protection for policyholders. This change can be particularly advantageous for those needing the services covered by the new provisions, but the increase in rates requires careful consideration by every client.
