Residents who carry the cost of family health premiums may experience modifications in payment structures.
Due to an increase in demand brought on by the implementation of a new required program that was announced on March 18, health insurance prices in the United Arab Emirates are anticipated to rise. Employers are required by this program to offer insurance to their staff members.
Industry leaders argue that insurers will have to tune their offerings to ensure that the price remains fair and balanced.
Starting on January 1, 2025, all companies in the UAE, including those hiring domestic workers, are required to offer and cover health insurance for their staff. Employers will have to pay for the health insurance coverage of their employees while obtaining or renewing their residency visas.
"A constant increase in rates is predicted given the regular economic factors like inflation and healthcare improvements, as well as the inevitable rise in demand for healthcare services following the scheme's inception,"
stated Avinash Babur, CEO of Insurancemarket.ae.
"It is incumbent upon insurers to implement a controlled approach to premium adjustments, ensuring that these changes are gradual and communicated transparently to avoid sudden financial strain on both employers and individuals,"
Babur stated.
Health insurance prices are expected to rise significantly as a result of the new healthcare plan, according to Anas Mistareehi, the founder and CEO of eSanad.
"There is a strong indication that health insurance premiums in the UAE will experience significant growth in 2024 and 2025,"
he stated.
Mistareehi says that historical precedents, including the significant market size growth of roughly Dh10 billion that Abu Dhabi saw in 2007 after mandated health insurance was implemented, lend credence to this projection. Similar to this, Dubai's 2012 implementation of mandatory medical insurance caused a notable spike in health insurance premiums, which increased by over Dh4 billion. These historical trends point to a comparable premium growth trajectory in the years to come.
Family members insurance
Anas Mistareehi elaborated that the impact of the new healthcare scheme on newly enrolled family members will become clearer once clarifications take effect. He expects minimal impact, particularly for families with fewer than three children, similar to Abu Dhabi's system where the employer covers up to three children. Babur noted potential adjustments in family health insurance premiums to align with the mandatory scheme. Insurers must ensure fair pricing and balanced coverage.
Mistareehi highlighted the scheme's potential to spur investments in healthcare infrastructure, improving service quality and fostering innovation and competition in healthcare.
News Source: Khaleej Times
