Medical insurance premium worries

Question: I am a UK expat living in Dubai and have just read in Gulf News that medical insurance premiums could rise. I have had cancer in the past but luckily work for a company that has group medical insurance. However, I am concerned that if the premiums rise my employer will no longer foot the bill. What are the alternatives for me in terms of ensuring I have enough cover for my future health care needs?

Answer: The story you are referring to in Gulf News reported that medical insurance premiums in Dubai could be in for a 10 to 20 per cent hike this year as insurers try to catch up with the rising costs of health care in the UAE.

Industry insiders say one of the reasons premiums could rise is because health care organisations might have been over-servicing patients; prescribing diagnostic tests, procedures and medications that are not 100 per cent necessary but are performed to be "on the safe side" because they know the costs will be passed on to insurers.

This is not a new complaint but one that is repeatedly raised about insurance-based health care systems rather than ones that are funded through public taxes, such as the UK's National Health Service, where the opposite claim is made; that care is rationed to keep down costs.

At the same time, health care has become more sophisticated with many more tests and treatments on offer, especially for cancer, which along with people living longer, increased health education and improved access to care, means more people are seeking medical advice.

This in turn has prompted health care organisations to invest in infrastructure, staffing and equipment — pushing their costs higher.

In the UAE, employer-funded health insurance is mandatory in Abu Dhabi but not yet in Dubai.

This means that your company in Dubai is not legally bound to pay for your medical coverage. However, Dubai has been poised to follow in Abu Dhabi's footsteps in making health insurance mandatory for the past three years, and there is talk that this could finally take place this year.

One step ahead

In this respect your company is one step ahead of many and already has a group insurance policy in place.

One thing you need to do now is to check exactly what the policy covers, what the premium is per individual and when it is up for renewal.

It may be prudent to have a frank discussion with your bosses as to how much more they are prepared to pay if the premiums rise.

Speaking to an independent financial adviser about medical insurance cover would be a wise move. It may be that you will need to take out your own cover if your company's group policy is axed. However, if you take out your own policy, remember that the insurer will scrutinise your medical history where they will pick up on the fact that you have had cancer that may require further treatment.

In this case it may be wiser to persuade your bosses to maintain their existing group plan — even if there is a hike in premiums —and volunteer to pay a percentage of the extra costs.

Group plans are often written so people can still qualify with pre-existing conditions because the risk is spread across paying members.

However, irrespective of any scenario it is good to reassess your medical cover to make sure your policy has sufficient cover to pay for the costs of any future treatment needs.

The writer is Director General Insurance, Nexus Insurance Brokers LLC. Opinion expressed here are the writer's own and do not reflect that of Gulf News. If you have any questions please email it to advice@gulfnews.com