Dubai Health Authority announces health cover roll-out plan

Timetable offers deadlines for three types of companies based on the number of employees on their payroll

06 Gulf News

Dubai: Companies of varying sizes were issued deadlines on Tuesday by the Dubai Health Authority (DHA) to meet mandatory health insurance coverage laws starting in 2014.

Following a meeting between the DHA and health insurance companies in Dubai on Tuesday, a new timetable offers deadlines for three categories of companies based upon the number of employees on their payroll — larger companies with wider profit margins will be required to ensure complete insurance coverage sooner while smaller companies will have until mid-2016 to meet the call.

Companies with more than 1,000 employees, for example, must insure all of its workers by October 2014.

The new Health Insurance Law was approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Eisa Al Maidour, director-general of the DHA, said in a statement on Tuesday that the “health insurance mandate will provide a significant boost to the health insurance industry, it will attract investment in the health care sector and will generate healthy competition between providers as well as health facilities. This only means further improvement in the quality of health services as well as more health care options and competitive premium prices. The mandate will benefit all the stakeholders concerned — this includes insurance providers, health care facilities and most importantly, patients.

Aim of the law

“Our aim is to provide everyone in Dubai with access to essential health cover and to empower them by providing them with the right to choose their health provider within the private or public sector,” Al Maidour said.

According to the new timetable’s Phase 1, companies with more than 1,000 employees will be required by the end of October 2014 to “ensure every employee/dependent has insurance coverage by the stipulated deadline.”

In the second phase of the plan, companies with 100-999 employees must implement full health insurance coverage by July 2016.

Under a third phase, companies with less than 100 employees have until June 2016 to arrange for complete insurance coverage.

The DHA timetable demands that spouses and dependents as well as domestic workers must also be fully insured for basic health coverage by June 2016.

Visa renewal

When it goes into force, the new law will ensure that no work or residence visa will be renewed without a health insurance cover.

David Hedley, CEO of Mediclinic Middle East which runs the Mediclinic City and Welcare Hospitals, said earlier that this “is a giant leap forward for Dubai as everyone will have access to affordable and quality health care. I congratulate the government on its bold step and I am confident the insurance system will be implemented successfully.”

Dr Ahyam Refaat, founder of health care consultant Accumed PM, said in an earlier interview that the “long-awaited legislation is a step in the right direction. It will add to Dubai’s growth and public health and safety.”

Insurers need DHA permit

Meanwhile, the DHA said it will soon be issuing a list of approved health insurers who have applied for and received a permit to offer services in Dubai.

All health care providers will need to obtain a health insurance permit so that they are eligible to provide insurance cover in Dubai, Al Maidour said.

“In order to ensure we have the very best insurance companies on board, the DHA has laid out a set of criteria that all insurance companies need to adhere to, so that they are eligible to receive a health insurance permit, which is mandatory for companies that want to provide a health cover to anyone in Dubai.”

Dr Haider Al Yousuf, director of health, said: “Insurance companies interested in providing the essential health benefits [EHB] package to resident employees with salaries below Dh4,000 will have to undergo further qualifying criteria to ascertain their ability to provide an insurance package at an affordable rate. The premium for this package will range between Dh500-700 per person per year.”

He added that the package will cover all essential health services. “This package will cover emergency care, access to general physician [GP]/family physicians, referral to specialists, tests and investigations, surgical procedures and maternity care. All the necessary health requirements will be covered by this package. Therefore, once the mandatory health insurance is rolled out, people across the board will see the immediate benefits of the system.”

Cost for employers

Al Yousuf said that for employers, this will provide a minimum impact in terms of cost. “On average, health insurance costs 1.5 per cent of the monthly salary. For example, if an employer pays Dh10,000 per month in salaries, if he adds Dh150 per month, it covers the cost of health insurance. This is a minimum impact, adequate benefit plan; clearly, the benefits outweigh the minimum costs involved. The scheme protects both employers and employees from unforeseen health care costs that can arise out of an illness or an emergency.”

He said that as per the law, companies are liable to cover their employees only but the DHA encourages companies to cover the dependents of their employees as well. “It is a known fact that covering dependents of employees directly leads to greater employee satisfaction and better productivity.”


  • Imtiaz Ali Shaikh

    Dec 18, 2013 3:35

    It should be clear that the family insurance to be provided by employeror by employee. and What is the meaning of family status for anemployee. It should be clear.

  • Thangamani

    Dec 18, 2013 1:41

    What about families who depend on the employee like housewife,children, father, mother, father-in-law & mother-in-law?

  • arjay

    Dec 18, 2013 1:08

    GOOD, that we will have a health insurance but BAD, because ourcompany will deduct the insurance cost in our salary.

  • Mirza

    Dec 18, 2013 12:51

    This is good but what about families? Does DHA have a regulation toenforce employers on providing family medical like Abu Dhabi? That is needed.

  • Bathiya Prematilake

    Dec 18, 2013 12:10

    This is a good initiative @ the right time of period, but let me sharefew views relating to the controls witch has to be made considering acompetitive environment in future. As per these conditions and policycovers, there had to be strict controls given to general public for theusage of the medical facility since the insurance companies will ratethe policy depending on the tendency of claim estimations. Also wouldnote as mentioned on the web site, there had to be controls put in toidentify the correct and approved insurer for general public. if notthis could lead in to discrepancies of premiums paid from the generalpublic. Since the business is going to be wide open to the generalpublic, initial patient flow to hospitals will be high and generallywhen the demand is high the cost will also rise depending on thesituation witch has to be governed by the law and informed in generalpublic. In consideration on the safety of the insurers, its isadvisable to have a trust fund operated by the government in case ofinsurer inability to fund the cooperate or individual polices as asafety role of precaution governed by the respective authority. ( Trustfund could be a minimum premium paid against each policy witch could bereferred as UAE medical trust fund) I would like to contribute more onthis voulenterary if a opportunity is given.

  • Vijin

    Dec 18, 2013 11:44

    What is the idea behind giving a 2 and a half year time period toimplement this for small companies?

Latest Comment

It should be clear that the family insurance to be provided by employeror by employee. and What is the meaning of family status for anemployee. It should be clear.

Imtiaz Ali Shaikh

18 December 2013 15:53jump to comments