
Compulsory health insurance will set off another demand surge at hospitals, clinics
Hospitals and clinics in Dubai will be major beneficiaries – at least in the initial phase – as residents in the Northern Emirates also come under compulsory medical insurance, starting on January 1, 2025.
This is because the likes of Sharjah and Ras Al Khaimah will require significant increases in new healthcare facilities to take on the increase in demand. And new hospitals and clinics could still be 3-4 years away, healthcare and insurance industry sources say.
An immediate spike in medical consultations from the newly insured across the Northern Emirates is a given. “This is a trend we had seen when Abu Dhabi and Dubai introduced compulsory medical cover in 2006 and 2012, respectively,” said an insurer. “It didn’t matter whether residents were coming for a fever or a cough, they wanted to see a doctor using their new insurance policy.
“It should be the same for the newly insured in Sharjah and elsewhere.”
Check the insurance policy
However, residents of the Northern Emirates should read the fine print on their new medical insurance policies to see if they are allowed to receive outpatient consultancy at a facility in Dubai.
“Many insurance plans allow coverage across emirates, and this could drive insured individuals from northern emirates to seek treatment at Dubai’s well-equipped healthcare facilities,” said Avinash Babur, CEO of InsuranceMarket.ae. “Yes, Dubai healthcare facilities are likely to benefit from lower capacity in the northern emirates, at least initially,provided they are included in these new insurance plans offered.
“We also observe a significant number of businesses and employees registering their companies in free zones in Sharjah and other northern emirates while residing in Dubai. This trend increases the demand for Dubai-based healthcare services as these residents are more likely to utilize facilities closer to where they live, even if their visas and insurance plans are tied to the northern emirates.
“This overlap will further strain Dubai’s healthcare resources but also generate additional revenue for its providers.”
Healthcare for all
Starting in January, UAE now requires universal healthcare insurance for its residents in all the emirates. Private sector entities based in the northern emirates must ensure they provide adequate medical cover for all staff. For the healthcare and insurance sectors in the UAE, this is a defining moment for their future growth.
“There is indeed an anticipated surge in investments for new hospitals and clinics in the northern emirates,” said Dr. Raza Siddiqui, Executive Director of RAK Hospital and CEO of Arabian Healthcare Group (AHG). “Many residents of these emirates who previously relied on government-run institutions will now have a choice – and encouraging a more competitive environment among healthcare providers.” (AHG plans to build multiple clinics in Ras Al Khaimah.)
Major difference in basic medical policy not much of a surprise, but residents of northern emirates will pay a lot less on their basic medical insurance plan compared to Dubai and Abu Dhabi.
So, basic health plans will start at Dh350 against Dh650 and over in Dubai and from Dh800 in Abu Dhabi.
“The lower pricing reflects the cost dynamics in the northern emirates, including healthcare costs and insurance claim trends,” said Babur. “These are typically less expensive compared to the major metropolitan areas elsewhere in the UAE.”
The lower cost of a basic medical plan could also mean policyholders will have less choice in choosing who their healthcare provider should be. Insurers are likely to be extra diligent in managing their health insurance exposures as they widen coverage to residents of the northern emirates.
‘It will take time’
With the law in place, residents of the northern emirates will find that they will have to take out medical cover sooner rather than later. The most important reason is that their visa renewals will be tied to whether they have a plan or not.
“Typically, when mandatory health insurance laws are introduced, there is often a slower initial response,” said Babur. “People may delay purchasing medical coverage unless fines or other enhancement measures are in place.”
Whatever be the case, UAE’s healthcare providers now have all the reason to go for the big investments in hospitals and clinics across the northern emirates.
“By extending medical coverage to the Northern Emirates, the policy will not only improve access to healthcare but also stimulate significant growth in the sector,” said Mohammed Faiz, Director of Operations at Prime Healthcare Group. “This will encourage increased investment in healthcare infrastructure, attract private sector participation, and enhance the overall UAE healthcare ecosystem.”
Source: gulfnews