UAE | Health
Insurers reject increase in UAE health care fees
Patients will have to pay If insurance firms refuse to meet rise
- By Nadia Saleem, Staff Reporter
- Published: 00:00 December 28, 2009
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With billions being invested in Hospitals across U.A.E, hospitals have the right to increase the pricing. However, government can regulate such act from 2011 for the fact the hospital have invested heavily and have forecasted such pricing for 2010. During the time of global recession, Health sector have invested millions in upgrading their services and have not compromised on the services. Insurance companies have such competition among themselves that they sell premium for peanut pricing in order to increase the member count not seeing or forecasting the profit. Insurance companies: The well known Insurance / TPA companies in Dubai are complaining against the pricing. How come they forget, hospitals do write off a lot of money because of technical error, discount issue and many other causes created by insurance companies. How can hospital survive in such a scenario were they are getting payment so late. It is advisable to gather Insurance – Provider gathering to sort out the issue. Insurance companies should not categorise all hospital on the same level.
Anonymous, Dubai, United Arab Emirates
Dubai: Eight major hospitals and 17 medical centres in the UAE have proposed to increase fees by up to 45 per cent in the new year, insurance companies said in a meeting on Sunday.
The increase is a sudden and "unjustified" jump which will have to be borne by the insurance companies until insurance policies expire.
Those not insured will have to bear the increase in medical charges.
"Although it [the fees] was increased in the past six years, especially in 2007 and 2008, there is no reason to hike it further, since there is no increase in operational costs," said the insurers' committee.
The group of insurance companies decided at the meeting that they would reject the increases.
They also said that they "can't tolerate this unjustified increase as it will reflect negatively on the public [beneficiaries]", as the increase will essentially be passed on.
Meanwhile, hospitals said that the rise is an average annual increase.
Inflation
"We are increasing our prices by about 7 per cent. This is in line with medical inflation in the region [to] sustain the delivery of medical care," said Mustafa Kantawala, general manager of the finance department at Welcare Hospital and City Hospital (Group).
He said that the increase would affect all patients, but the majority of its customers, about 65 per cent, are insured.
The hospital had submitted the proposal almost three months ago, he said, and is now waiting for the insurance companies to agree.
"If they don't agree, it will be very traumatic for our patients. They would have to pay and get reimbursed later," he said.
While the insurance companies said that they would reject the increase, they also said that they would approach federal and local health authorities to monitor health care charges.
Consumer protection
The issue would also be forwarded to the consumer protection society at the Ministry of Economy.
Zulekha Hospital — proposing the highest increase at 44 per cent, according to its insurance companies — refused to comment. Al Zahra Hospital said that the matter is confidential and also refused to comment.
Other hospitals include International Modern Hospital, American Hospital, Al Raffah Hospital, Al Noor Hospital and Al Salama Hospital.
Negative impact
Insurance companies said they could not include the increase in the current policies and would have to wait for them to expire, which could take up to a year.
"When the policies were issued, the increase was not taken into consideration, which will affect the public negatively," insurance company representatives said.
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