Law of mandatory health insurance for expat workers in Dubai
For a long time Dubai had no official requirement for expat workers to have health insurance, even though many employers provided it anyway. The government provided some free healthcare which many considered to be sufficient, but it is no longer the case that the government can afford to do this. The sheer volume of expat workers in the Emirate means that the healthcare bill is spiralling and the situation has become unsustainable. As a result the law to make it compulsory for expat workers to have health insurance is now in place and has brought Dubai in line with other Emirates.
Before the bill came into effect it was estimated that around two million people in the Emirate did not have health insurance. Now there is the Essential Benefits Plan and this will ensure a standard level of healthcare cover so that everybody can get access to the healthcare that they need. The Dubai government began by assessing health insurance providers and issuing the permits they need to offer the required cover. Initially 43 companies were issued with permits and then a number of this were given the ‘participating insurer’ status that allowed them to sell the policies.
What does the mandatory health insurance consist of?
The policy is designed for those who earn AED 4000 or less each month and employers that are hiring expat workers need to ensure that they provide a policy for the staff. Companies have had to make sure that they have the policies in place by the deadlines set by the government. It is estimated that the cost of the EBP package will be between AED 500 and 700 for the workers who earn less than AED 4000 a month.
For employees that earn more than this amount, the employer can choose any healthcare policy provider that they want, providing they have been given a health insurance permit. The insurers can decide on the level of healthcare provision for policies for those who earn above the essentials policy threshold. These policies are generally known as the ‘enhanced plan’ which means that they usually offer in excess of the minimum requirement and they can also set their own cost for these policies at the moment although there are plans in place to set a cap on charges for this type of policy. The aim of this is to bring a little stability to the market and to bring an end to price wars. The government is also keen to put a stop to large increases in premiums for health insurance policies.
The Essential Benefits Plan is designed to cover emergency medical care, allow the user to have access to a primary care doctor, cover the cost of referrals to specialist care, cover the cost of tests and investigations, the cost of maternity care and the cost of any surgery that is deemed necessary. In order to be sure that the new regulations on health insurance are being met visas will only be issued and renewed if evidence is provided that the right level of health cover is in place.
Does this apply to Dubai nationals?
Dubai nationals can benefit from a healthcare program that has been in place for some time. They are either part of the Enaya scheme or they are part of other government-funded schemes. The system that is in place for Dubai nationals is considered to be very good and provides an excellent level of healthcare.
What happens if my employer does not comply?
Any company that fails to follow the new regulations and provide their staff with an adequate level of health insurance can be fined up to AED 500,000. The new system is going to be strictly monitored and there will be digital tools in place to help with this including e-claims and e-prescription. Careful monitoring will also ensure that there can be no abuse of the new system.
The Dubai government is also planning an educational campaign to ensure that people are aware of the issues surrounding overuse of the system. The structure of the new system means that the health care insurance providers and the medical service will have to work together. Eventually it is hoped that the cost of health insurance can be reduced as a result.
