Starting January 1, 2025, health insurance will become mandatory for all employees and domestic workers across the UAE. This move aims to standardize healthcare coverage, making it accessible to a broader portion of the population. Employers in the Northern Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah) will be required to provide health insurance for their employees as a condition for issuing or renewing residency permits. Previously, Abu Dhabi and Dubai had already implemented similar policies.

But what about employees' families? While the announcement from the Ministry of Human Resources and Emiratisation (MoHRE) specifies that employers need to provide health insurance only for employees, many industry experts believe this scheme will likely extend to family members as well.

Will Employers Need to Provide Health Insurance for Family Members?

Although the new health insurance mandate currently focuses on employees, it's expected that employers may eventually be required to extend coverage to employees' dependents. This follows the precedent set by Dubai and Abu Dhabi, where sponsors (employers or individuals sponsoring visas) are required to arrange health insurance for their families.

Neeraj Gupta, CEO of Policybazaar.ae, explains that health insurance for dependents is essential during the visa process. “It’s a good initiative at a very competitive price that will definitely help people get access to health coverage,” he adds.

Similarly, Hitesh Motwani, CMO at Insurancemarket.ae, emphasizes that the practice is already established in Dubai and Abu Dhabi, where sponsors are responsible for securing health insurance for their family members and dependents. Moin ur Rehman, Executive Director at Unitrust Insurance Broker, also echoes this point, noting that in the Northern Emirates, sponsors will need to secure health insurance for their families according to UAE regulations.

Health Insurance Coverage: What’s Included?

The new mandatory health insurance package offers a basic level of coverage, starting from as low as AED 320 per year. While this plan meets the basic regulatory requirements for workers, it’s essential to understand what is covered and whether this is enough for your family’s healthcare needs.

Here’s a breakdown of what’s included in the basic health insurance package:

• Inpatient Care: The plan covers treatment expenses for patients requiring hospitalization or surgery, with a 20% co-payment. Patients pay a maximum of AED 500 per visit, with an annual cap of AED 1,000 (including medications). Beyond this cap, the insurance covers 100% of treatment costs.

• Outpatient Care: For patients requiring medical visits, diagnostic tests, or minor procedures, the co-payment is 25%. The insured pays up to AED 100 per visit, while follow-up visits for the same condition within seven days have no co-payment. Medications come with a 30% co-payment, with an annual cap of AED 1,500.

This basic plan offers coverage for individuals between the ages of 1 and 64, with certain requirements for individuals over 64, such as completing a medical disclosure form and providing recent medical reports.

Is the Coverage Enough?

The AED 320 plan is considered affordable and competitive for sponsors who need to meet the basic visa requirements for their employees. However, Moin ur Rehman advises that while this plan is sufficient for meeting regulatory requirements, sponsors should carefully evaluate whether this coverage is enough for their families' overall healthcare needs.

Neeraj Gupta of Policybazaar.ae points out that the plan is not only affordable but also crucial in expanding healthcare access. Its competitive pricing ensures that more families in the Northern Emirates can secure essential health coverage, aligning with the UAE’s goal of universal health insurance coverage.

A Step Towards Universal Health Coverage

The UAE’s initiative to mandate health insurance for all workers and domestic workers is a positive step towards universal healthcare coverage in the country. With affordable packages starting from AED 320 per year, more residents will have access to essential healthcare services, ensuring that both employees and their families can receive the medical attention they need when they need it.

As the policy evolves, it’s important for employers and sponsors to stay informed about the requirements and make sure they’re providing adequate coverage for both themselves and their dependents.