Abu Dhabi: Health insurance costs in the UAE have shot up by 20 to 60 per cent in the past couple of years, forcing expats to think twice before taking out policies or renewing them.
“It just doesn’t make sense. Assuming I take my wife and daughter to the clinic by turn every alternate month, I would rack up about Dh3,000 for the whole year. Add another Dh1,500-Dh2,000 for medicines and tests and it still doesn’t justify the Dh6,442 price quoted by an insurance firm for their annual basic cover,” reasons Indian expat Abhinav Singh.
In August 2012, Singh renewed their policies for Dh5,138, a 72 per cent increase from August 2011 when he paid Dh2,979 for the same policies.
Briton Nick Cate says he hasn’t had medical insurance precisely for the same reason.
“My wife travels frequently to the Philippines where she always has access to cheaper medical care while my son and I get ourselves checked once a year at a nearby clinic for about Dh1,000 each.”
An HR manager of a Dubai company said the problem is beginning to affect corporates. “We have seen about 15-20 per cent hike over the last couple of years. I am told it’s because of increased claim ratios in 2012 compared to 2011. “If this goes on then we may come to a point where we will be forced to offer ‘toned down’ cover packages with far less benefits,” he added.
A spokesperson from a leading private healthcare provider also said costs have increased by 15-20 per cent in the last two years and the trend continues in 2013.
“Medical inflation, although not published officially, is running high. We reckon it’s mainly due to increases in salaries of medical professionals, facility rentals and accommodation, regulatory compliance costs including accreditation and e-claims, plus rises in electricity and other utility costs,” he said.
Earlier this year several insurance companies came to logger-heads with an international private healthcare company after they sent out mails notifying customers of a potential 5-6 per cent increase due to ‘economic and operational realities’.
Though the matter was resolved, insiders say it’s a sign of things to come.
“Your policies cost you more this year because healthcare in general costs more these days and this is likely to go on,” says a sales executive of a Dubai-based brokerage firm.
In Dubai, the Dubai Health Authority said they were considering regulating the sector and putting laws in place to cover health insurance. “I know talks are on in Dubai to follow in the footsteps of Abu Dhabi by making employee health cover mandatory for all. “Insurance prices will be regulated when it will be made available for everyone with a minimum cover of Dh250,000 including dental and maternity cover,” said a manager at a Middle East-based insurance solutions provider.
