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Residents ignorant of health insurance plans

Dubai - Research by a medical and travel security risk services company finds more than 80 per cent of the UAE residents underestimate the country's high level of medical inflation. The survey has also found that 51 per cent of people do not know how much their health insurance costs.

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More than half of the population in the UAE are ignorant about managing their health insurance plans which, in turn, leads to medical inflation, a research has found.
According to the newly-released research by International SOS - a medical and travel security risk services company - more than 80 per cent of the residents underestimate the country's high level of medical inflation.
The research, which was conducted by YouGov, also found that 51 per cent of people do not know how much their health insurance costs.
According to Pacific Prime, a global health insurance broker, medical inflation in the UAE was 9.5 per cent in 2015, and has averaged 10 per cent for the last five years.
This means that company health insurance policies that cost Dh1 million in 2010 cost Dh1.6 million at the end of 2015.
It should be noted that employers in the UAE are obliged to pay for health insurance directly.
In Dubai, from June 30, all employers will be required to pay for health insurance for their employees, including those employing domestic staff. Employers of fewer than 100 people were previously exempt.

Findings of the survey

Most of the insurance plans allow individuals to choose doctors and facilities of their choice as listed by the insurer. However, only a few have access to independent medical advice that helps them in choosing the health care provider or to know whether a consultation is required for a particular condition.
The findings also found that costs vary significantly - up to 70 per cent - among the institutions providing the same services, even when the quality of the service is comparable.
As an example, SOS International compared fees at two leading hospitals in Dubai.
For GP consultation, the first hospital was found to be 70 per cent more expensive than the second hospital, as well as 25 per cent more expensive for a consultation with a cardiac specialist, nine per cent cheaper for normal delivery, and two per cent cheaper for an angiogram.

What drives up health care cost If you think rising health care costs are affecting only residents, you are wrong. According to Des Donnelly, Corporate Development Director at International SOS, "rising health care costs concern everybody." "The lack of initial medical advice and referrals to an audited network of clinics and hospitals drives up the number and cost of medical treatment claims for insurance companies, and this inflates employers' premiums year after year. It would be in everybody's interest to take action to address this," Donnelly said.

About 75 per cent of people said that they would use an independent telephone service to get initial advice about a health care provider, with 59 per cent saying they have visited the doctor at least twice in the past year. More than a quarter reported over four visits.
"Rising health care costs concern everybody. Health care inflation threatens our job prospects, pay-rises and bonuses. Unfortunately, few people seem aware of this, and those that are have little information to manage their own impact on this issue," said Des Donnelly, Corporate Development Director at International SOS.

How people choose health care provider

Word of mouth and previous experience were found to be the most significant factors in how individuals choose health care providers, with 66 and 56 per cent citing them, respectively. The high demand for medical staff was found to lead to high personnel turnover and service gaps.
"Just because a hospital looks fantastic and has shiny equipment does not mean that health outcomes for patients will be the best. However, it does often mean that treatment costs can be sky high," said Dr Fraser Lamond, Regional Medical Director at International SOS.
"There is a real need to understand the quality and reliability of the healthcare when selecting healthcare providers. That will lead to better outcomes for patients and lower costs for society."
reporters@khaleejtimes.com