The introduction of compulsory health insurance for every worker in Dubai is good news for everyone, because it will enhance the health care system in the emirate and provide a better health security for residents.
But as it is the case with any new initiative, it also raises its own set of challenges.
As The National reported yesterday, the new scheme that will be rolled out in phases from next year to mid-2016 will require employers to provide health insurance to workers, as well as their employees' spouses and children, for as long as they live in the emirate.
Failure to do so could lead to fines of between Dh500 and Dh150,000, and up to Dh500,000 in case of repeated breaches. Domestic staff and visitors will also be covered in later stages.
Health insurance is important, especially for those unpredictable moments in life.
In Abu Dhabi, making health insurance mandatory for residents helped many to ensure they received the necessary medical treatment. After more than four years, 98 per cent of Abu Dhabi workers are covered.
But the emirate also faced some challenges with the increasing demand, causing the overall cost of medical treatment to go up. The government addressed that costs blow-out by cutting the prices of more than 6,600 medicines by up to 40 per cent.
The lack of public information on the correct use of health insurance, the absence of unified guidelines for treatments, low responsibility by members on sharing the cost of treatment, and insufficient management of the dispensing of pharmaceuticals were identified by Daman, the main health insurance company in Abu Dhabi, as some of the main factors that led to inflation and health insurance abuse.
Dubai is likely to face the same challenges, which is why lessons should be learnt from Abu Dhabi’s experience.
The proper supervision of the insurance system is necessary to avoid abuse and fraud.
An awareness campaign is also required to educate the public about when they should seek medical help. Having a well-informed public will help to address many problems.
Abuse of the system by a few will reduce the benefits – and raise the cost – for all.