How is it different from existing requirements?

The UAE government has introduced a mandatory health insurance program for all private sector employees and domestic workers, effective January 1, 2025. This initiative aims to make healthcare expenses more manageable for those residents. The plan offers relief to people without employer-provided health coverage who have difficulty paying for insurance. Although employers may face higher premiums and expenses, offering comprehensive health benefits can improve their ability to attract and retain qualified workers.

Below is a complete overview of the national healthcare plan in the United Arab Emirates.

How is this plan different from the mandatory plans that already exist?

Currently, mandatory health insurance is limited to employees in Abu Dhabi and Dubai due to localized laws enacted by these emirates. However, the new national system requires employers to extend health coverage to their employees throughout the UAE.

In Dubai, it is mandatory for employers to provide a health insurance package to their employees. However, employees are responsible for enrolling their family members (dependents) under their sponsorship in the plan.

In Abu Dhabi, both employers and sponsors must provide coverage for their employees and their families, including a spouse and up to three children under 18 years of age.

Once implemented, will employees be required to pay for the insurance plan?

Under the law, employers and sponsors will effectively be required to cover the expenses of their staff and domestic workers. However, it is not explicitly stated whether the law will require companies to fund insurance plans for their employees’ family members.

How will the UAE enforce the rule?

According to a statement by the UAE Cabinet, employers will be required to obtain a healthcare package for their employees when issuing or renewing their residence permits. This implies that the provision of a health plan to an employee or domestic worker could be linked to the issuance or renewal of their visa, mirroring the procedure in Abu Dhabi and Dubai. In both emirates, visas are retained or renewed only upon proof of valid medical coverage.

Will there be a fine for not obtaining medical coverage for employees?

Specific sanctions for non-compliance with the UAE health plan have not yet been detailed. However, for existing plans in Abu Dhabi and Dubai, fines typically range between Dh300 and Dh500 per month per person for failing to provide health insurance coverage.

What will the insurance plan cover?

The UAE is yet to clarify the specific coverage provided under the mandatory insurance scheme for beneficiaries. However, even basic packages, such as the essential benefit plans offered by employers in Dubai for staff earning less than Dh4,000 a month, typically cover emergencies, surgeries, medical diagnoses, medications, both outpatient and inpatient treatments and care. maternity leave, according to information from the insurance aggregator Policybazaar.

Policybazaar also notes that there are certain limitations and conditions, along with coinsurance requirements where the insured person is responsible for a portion of the cost.

News Source: Khaleej Times