Once rolled out, the law will mandate basic healthcare to an estimated two million people from all strata of society in Dubai. It is loosely based on existing regional models such as the Daman Health Insurance in Abu Dhabi and the national insurance system in Saudi Arabia.

The regulatory framework of Dubai’s mandatory health insurance law is ready and is currently being reviewed by the Dubai Executive Council. “Timelines for implementation will be announced soon after the law is in place,” said Dr Yousuf Haider, Director of Health Funding Department at the Dubai Health Authority.

“The proposal is in good shape right now and is in the final stages of approval. Once this is done, it will be ready for implementation,” he said without mentioning an expected date for its 
approval.

Implementation in phases

The law stipulates that the sponsor will be responsible for providing insurance cover to those under his sponsorship, be it his family or employees. The law, like all regulatory frameworks, will also address penalties for non-compliance. The regulation replaces an earlier health funding model that was deferred by the Dubai government in 2008 after the global economic climate became unviable for its implementation.

“The Health Funding Department has been working on the law while keeping in mind employers, providers and insurance companies,” said Dr Yousuf. “Though many companies provide insurance cover to their employees, it is done randomly and is not mandatory,” he explained.

An estimated 500,000 people currently have some form of private health insurance in Dubai. “Once the law is fully implemented and over the period of time suggested, everyone in Dubai will have private insurance,” he said.

Companies that will have the lowest impact in terms of the premium on daily operations will come under the law first. “A lot of multinational companies and more established local companies already have private health insurance. So these people will automatically plug into the system,” he explained.

“But then as the rollout process advances, for example, companies with 500 to 1,000 employees from different sectors will also come into the law gradually.”

Dr Yousuf also said that the upcoming insurance model was right for Dubai as per the changing economic climate. “We take into account the cost of doing business. This is not supposed to be a burden on businesses but should add to the economy — not only to the health sector but to the economy across the board.”

Two million to benefit

“From a provider’s point of view, the target population is now two million people. And from the investors’ and private healthcare facilities view point, this is fantastic news because it means that funds in the system are available,” he said.

A recently held Dubai Household Survey revealed that 77 per cent people from the low income bracket in Dubai do not have any health cover. “The law is all about protection and we want to ensure that the weakest members of the society are protected by health insurance,” explained Dr Yousuf.

“So, at the moment, a poor labourer whose salary, for example is Dh1,000 and is sick and does not have health 
insurance, could either lose all of his salary in treatment or save it only if the employer decides to get it reimbursed. So, the aim is that the poor and vulnerable members of the society should not go into financial ruin and take money out of their food or basic requirements.”

All beneficiaries, however, will also have to contribute to access basic healthcare. “There will always be co-payment in any insurance system which ensures that people don’t overuse these services unnecessarily.”

Dr Yousaf said the new model suits the large percentage of expatriate population. “There are large groups that require healthcare at a reasonable cost and decent coverage,” he added.

Before Abu Dhabi came up with its mandatory health insurance system Daman, only 100,000 expatriates out of an estimated population of 1.46 million were medically insured. Since the implementation of the system in January 2007, the number of insured people has increased 10-fold. The basic Daman plan covers examination, diagnostic and treatment services provided that the insured pays Dh20 for every new visit and Dh10 when referred to a 
specialist. 
 asmaalizain@khaleejtimes.com

• UAE