UAE residents have options to keep their health insurance claims in check

UAE residents have options to keep their health insurance claims in check

Under the mandatory health insurance laws of Abu Dhabi and Dubai, employers of foreign workers (an estimated 85 per cent of the UAE population) are required to effect private health insurance policies to cover employees’ healthcare costs. As annual medical cost inflation amounts to anything from 10-12 per cent this becomes an increasing burden on employers. It is therefore not surprising that employers are seeking to reduce benefits under their schemes. This is evidenced by data published by the Central Bank of UAE that shows that from 2017-21 the total health insurance premiums generated remained static at Dh19 billion each year. This raises the question that if medical inflation is running at, say 10 per cent per annum, why are insurers not increasing their premiums by a similar amount to cover the increased cost of claims? The answer is that during that 4-year period, employers were containing their health insurance premium costs by reducing benefit levels for employees to achieve premiums at no greater level than the previous year. So, as an employee with an employer funded health insurance plan why should you care? Clearly you do not want to see your benefits reduced, be that in your annual pharmacy