Residents in Sharjah and the Northern Emirates would pay lower health insurance premiums as the UAE prepares to introduce a mandatory health insurance scheme for all employees.
Industry experts highlight that the healthcare costs in these regions will be lower in what would mean a big financial relief to employers and residents.
Nabil Shanawani, assistant general manager, life and medical division at Al-Buhaira National Insurance in Sharjah, shared insights about the upcoming changes.
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“With just three months to go, Sharjah and the Northern Emirates are poised to introduce affordable basic medical insurance, mirroring Dubai’s model, while aiming to reduce employers’ costs,” said Shanawani during the Insurance Meet 2024 organised by Thumbay Healthcare.
The event had participants from international and regional insurance companies, alongside government regulators from the Dubai Healthcare Authority, and served as a launchpad for essential training for the nationwide mandatory health insurance scheme that is set to take effect next year.
Shanawani said the government departments are reviewing insurance plans in Abu Dhabi and Dubai to develop a basic scheme that allows flexibility for employers to enhance benefits if needed.
The UAE will roll out a mandatory health insurance scheme for private sector employees and domestic workers, starting January 1, 2025. The plan aims to provide affordable healthcare for those without company-sponsored coverage. The scheme seeks to keep premiums lower than those in Dubai in a bid to avoid adding financial burdens on businesses. “Medical insurance can be quite expensive, and higher costs could negatively impact the business environment in the region,” said Shanawani.
Benefit plans yet to be finalised
According to experts, Sharjah and Northern Emirates have already made health insurance mandatory for visa renewals, requiring residents to present proof of coverage. Although specific regulations around minimum benefits and plan types have yet to be finalised, the government is expected to provide further details in the coming months.
“The integration with insurance companies and immigration departments is already underway, allowing for real-time verification of an individual’s insurance status, which will be fully operational by January 2025,” said Shanawani.
‘Value-based care is crucial’
Experts highlighted that the initiative is being seen as a positive move to ensure that residents in the Northern Emirates, many of whom lack health coverage, gain access to essential medical services. “Value-based care is crucial for expat workers, and access to insurance will improve health outcomes, elevate healthcare services, and enhance the overall well-being of the community,” said Shanawani.
Dev Maitra, founder and MD of Savington International Insurance Brokers, said the health insurance premium in the Northern Emirates will be lesser compared to Dubai and Abu Dhabi. “This is the first time they are introducing a mandatory scheme like this, and it will benefit people residing in the Northern Emirates,” said Maitra.
He said residents with Northern Emirates visas will benefit from the lower premiums due to the relatively cheaper healthcare costs in the region.
However, Maitra also mentioned that while residents will have access to hospitals in Dubai and Abu Dhabi, there could be restrictions on premium healthcare networks. “Authorities are working to ensure that healthcare remains accessible and affordable across the country.”