A basic health insurance package for private sector employees and domestic workers who are not currently covered by insurance is to be launched across the UAE, the Ministry of Human Resources and Emiratisation (MoHRE) announced.

The Health Insurance Scheme, approved by the UAE Cabinet, will go live on 1 January 2025. It is being launched in collaboration with the Federal Authority for Identity, Citizenship, Security, the Ministry of Health and Prevention, and a number of insurance companies. 

It will extend the mandated health insurance provision already in place in Abu Dhabi and Dubai to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. 

“The Health Insurance Scheme reflects the UAE’s commitment to extending the comprehensive protection system to all workers across the labour market, ensuring a decent life for all by providing access to high-quality healthcare services for private sector employees and domestic workers,” said Khalil Al Khoori, Undersecretary of Labour Market and Emiratisation Operations at MoHRE.

“It forms part of a comprehensive vision to expand the integrated social protection umbrella, which includes the Worker Protection Programme, Unemployment Insurance Scheme, and the voluntary alternative end-of-service benefits system known as the ‘Savings Scheme’. These efforts reinforce the commitment to providing a secure, healthy work environment and improving quality of life for all workers,” he added.

Employers are required to purchase the new health insurance policy as a prerequisite for issuing or renewing residency permits. However, the mandate does not apply to employees with work permits issued before 1 January 2024 that remain valid, and will only become mandatory when their residency permits are due for renewal.

What are the long term benefits?

“The new Health Insurance Scheme in the UAE is poised to have a notable positive impact on the competitiveness of the country’s labour market, improving performance on key indicators related to quality of life, protection of rights, and social and healthcare security,” said Al Khoori. “It is also expected to benefit workers and employers by reducing the financial costs associated with medical treatment and unpaid sick leave uninsured workers typically need to take.”

Meanwhile, Mansoor Ahmed, Healthcare, Education, Real Estate, PPP Advisor in the MENA region with more than 25 years of regional experience, told HBI the scheme is undoubtedly a positive initiative and a step in the right direction. “Its most significant aspect is that it allows insured individuals to access treatment as and when needed, particularly in emergencies,” he said. “Workers, including domestic workers, can have peace of mind knowing they are covered in the event of an accident or unforeseen incident. This will positively impact the competitiveness of the country’s labour market.”

Expanding on how it will benefit both private and domestic workers, Ahmed added, “The private sector’s overall operating costs are expected to decrease while offering better coverage than what is currently available. This change will allow the private sector to hire a more skilled and capable workforce, rather than focusing solely on ‘healthy’ workers. At the same time, employees will be able to concentrate on their work without the stress of health concerns or medical expenses.” 

How does the package work?

The policy is valid for two years, and the second-year premium can be refunded if the visa is cancelled. The basic insurance package costs AED320 (USD $87) per year [Ahmed agrees this is “highly competitive”], with no waiting period for workers suffering from chronic illnesses. It covers individuals aged one to 64, while those over this age must complete medical forms.

The package covers treatment expenses with a 20% co-payment for inpatient care. Insured parties pay a maximum of AED500 per visit with an annual cap of AED1,000, including medications. Beyond these limits, the insurance company covers 100% of treatment costs.

As for outpatient care, the co-payment is 25%, where the insured pays a maximum of AED100 per visit. No co-payment is required for follow-up visits for the same condition within seven days, while co-payments for medications are capped at 30%, with an annual cap of AED1,500.

The network includes seven hospitals, 46 clinics and medical centres, and 45 pharmacies. Dependents from the worker’s family can access the same benefits and pricing as in their policy. 

When the scheme goes live, employers can either purchase the new insurance package via the DubaiCare Network, or any other product from accredited insurance companies through various channels. 

How does this compare to other markets?

“The scheme aligns with what is already offered in Abu Dhabi and Dubai. Regionally, Saudi Arabia and Bahrain provide similar insurance, and it is expected that, over time, other GCC countries will also introduce mandatory health insurance for everyone, whether nationals or expatriates,” said Ahmed. 

Looking further afield, and taking into consideration the wider strategy, he added, “Providing a space that feels like a home away from home contributes to a more sustainable economy. The current health insurance market in the UAE is robust, with premiums valued at approximately USD 3.5 billion. This figure is expected to rise to around USD $4 billion by 2029. In 2024, the average per capita spending in the UAE’s health insurance market is estimated to be USD $297. 

“By comparison, the United States is projected to generate the highest gross written premiums globally, amounting to USD $1,708 billion in 2024. The demand for comprehensive health insurance coverage is increasing among UAE residents, driven by the country’s high healthcare standards and a growing population.”