Residents in Sharjah and the Northern Emirates are set to enjoy reduced health insurance premiums as the UAE gears up to implement a mandatory health insurance scheme for all employees. Industry experts note that healthcare costs in these areas will be more affordable, offering significant financial relief to both employers and residents.
Nabil Shanawani, assistant general manager of the life and medical division at Al-Buhaira National Insurance in Sharjah, provided insights into the impending changes. “With only three months remaining, Sharjah and the Northern Emirates are on the verge of introducing cost-effective basic medical insurance, modeled after Dubai’s system, with the goal of lowering employers’ expenses,” Shanawani stated during the Insurance Meet 2024, organized by Thumbay Healthcare.
The event, attended by international and regional insurance companies along with government regulators from the Dubai Healthcare Authority, served as a platform for crucial training sessions for the nationwide mandatory health insurance scheme scheduled to commence next year. Shanawani mentioned that government departments are currently evaluating insurance plans in Abu Dhabi and Dubai to create a flexible basic scheme that allows employers to augment benefits as necessary.
The UAE is set to launch a mandatory health insurance scheme for private sector employees and domestic workers starting January 1, 2025. The initiative aims to offer affordable healthcare to those without company-sponsored coverage, with premiums set to be lower than those in Dubai to prevent adding financial strain on businesses. “Medical insurance can be quite costly, and higher expenses could adversely affect the business climate in the region,” Shanawani noted.
While benefit plans are yet to be finalized, experts indicate that Sharjah and the Northern Emirates have already made health insurance mandatory for visa renewals, necessitating residents to provide proof of coverage. Although specific regulations regarding minimum benefits and plan types are still under review, the government is expected to release further details in the near future.
“The collaboration between insurance companies and immigration departments is already in progress, enabling real-time verification of an individual’s insurance status, which will be fully operational by January 2025,” Shanawani explained.
Experts emphasize that the initiative is viewed positively as it aims to ensure that residents in the Northern Emirates, many of whom lack health coverage, gain access to essential medical services. “Value-based care is critical for expatriate workers, and access to insurance will enhance health outcomes, elevate healthcare services, and improve the overall well-being of the community,” Shanawani added.
Dev Maitra, founder and MD of Savington International Insurance Brokers, highlighted that health insurance premiums in the Northern Emirates will be lower compared to Dubai and Abu Dhabi. “This marks the first time they are introducing a mandatory scheme of this nature, and it will greatly benefit those residing in the Northern Emirates,” Maitra stated.
Maitra also noted that while residents with Northern Emirates visas will have access to hospitals in Dubai and Abu Dhabi, there may be limitations on premium healthcare networks. “Authorities are working diligently to ensure that healthcare remains accessible and affordable across the country.”
