New national health insurance to deliver crucial support to low-income workers

Private hospitals braced for surge in demand as care becomes more affordable in Northern Emirates

Hundreds of thousands of workers and their families in the Northern Emirates will benefit from improved healthcare as a national policy to bring insurance for all comes into effect in the new year.

Starting on January 1, all companies must insure their employees, with proof of health insurance linked to visa processes. However, employees with work permits issued before January 1, 2024, will not be covered until their permits are up for renewal.

The scheme is designed to address the mountain of debt incurred by low-income workers, who often turn to credit cards or high interest loans to pay for care. Improved coverage for screening and pre-emptive health checks offers further potential to improve the health of blue collar communities, who are the most exposed to lifestyle-related illness.

At Dh320 for a basic plan under the DubaiCare network, affordable healthcare will now be offered to all.

Neeraj Gupta, chief executive of Policybazaar.ae, said the cover offers value and a safety net for workers and their families. “This is definitely a good initiative, and Dh320 is indeed a very competitive and affordable health insurance plan for sponsors’ families in the Northern Emirates.

“This pricing makes it highly accessible, ensuring a larger portion of the population can secure essential health coverage for their dependents.”

Hospital network

Under the terms of the policy, care can be had from a network of seven hospitals, 46 clinics and medical centres, and 45 pharmacies, where dependents aged up to 64 are also offered equal access to care. The package covers treatment expenses, with a 20 per cent co-payment for hospital stays up to an annual maximum of Dh1,000.

“Collaborative efforts like this between the government and insurers reflect a proactive approach to achieving the UAE's vision of universal health coverage,” said Mr Gupta. “It demonstrates a strong commitment to improving the quality of life for all citizens and residents while fostering a healthier, more resilient society.”

The most recent census for Sharjah showed the population had increased from 1.4 million in 2015 to 1.8 million in 2023, a rise of a 22 per cent that suggests large numbers are likely to benefit from the national coverage.

Dubai and Abu Dhabi have had mandatory basic insurance plans in place for several years, with that measure now extended to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.

“This basic health insurance package for the Northern Emirates, so excluding Dubai, has been anticipated for many years,” said Stephen Maclaren, director of corporate solutions at Seven Insurance Brokers. “The level of contribution for employers is considerably lower than it would be for Dubai or Abu Dhabi.

“This has been achieved by restricting the number of hospitals and clinics, so the volume counts to these levels of hospitals, clinics and pharmacies. It's a welcome addition for all blue collar workers who have been waiting for cover for some time and good for the insurance industry in terms of giving more coverage.”

Financial burden

A woman who spoke to The National has been working at a private school in Sharjah that has not provided health cover for her. This meant she had to pay her own medical care when required, placing considerable pressure on her finances with annual care costing thousands of dirhams.

Dental fees were the biggest expense, she said. “The financial burden would undoubtedly be lighter if the school provided health insurance. This issue extends beyond health coverage, as employment contracts were only issued recently when regulations were enforced, penalising institutions that failed to comply. It is frustrating, and disappointing to see institutions fulfil their obligations only when faced with fines or legal consequences.”

Another Sharjah resident, an employee of a media company, said his company had not provided any health cover for more than a decade. “About three years ago, when mandatory health insurance was imposed on large institutions, the company seemingly provided coverage,” the man told The National.

“But when I tried to use the insurance, clinics and hospitals told me the policy wasn’t valid. The situation is a severe financial challenge. My salary is only Dh5,000, and I recently had to pay for tests and medications for an ear infection which costs more than Dh500.

“Mandatory health insurance is a vital decision that would significantly support people like me, especially as living costs continue to rise.”

In 2024, the value of gross written premiums in the UAE’s health insurance market rose to $2.85 billion. The term refers to the total amount of premiums collected by an insurance company during a given period before any discounts or refunds.

This year, the UAE’s average annual spend for each person has been $297, according to Statista Market Insights. Market volume for premiums is expected to rise to $3.96 billion by 2029, with the change reflecting population growth and also wider insurance coverage. By comparison, in the US, gross written premiums increased to $1,708 billion in 2024.

Patient surge

Hospitals in the Northern Emirates are likely to experience a surge in patients, doctors said, but many lives would be saved through increased monitoring of potentially life-threatening conditions.

“Previously, a segment of the population in Sharjah and Northern Emirates didn't go to healthcare facilities because they had to pay,” said Dr Kishan Pakkal, chief executive of International Modern Hospital Dubai.

“We used to see lots of patients with high blood pressure and diabetes who had not seen a doctor for months, or even years. When they eventually came with problems, they had complications that were harder to treat. Now, the moment they have a health issue, they can at least go to the nearest clinic.”

Alongside the 1.8 million people resident in Sharjah, there are around 505,000 in Ajman, 345,000 in Ras Al Khaimah, 256,000 in Fujairah and around 49,000 in Umm Al Quwain.

A new patient population poses new challenges for hospitals in the Northern Emirates.

“Imagine a million people who have not visited until now, some will discover they have high blood pressure, diabetes, high cholesterol or asthma for the first time,” said Dr Pakkal. “These previously uninsured people will now have access to life saving treatment thanks to the government policy.

“It will relieve burden from government hospitals, but private hospitals will have to manage a turnaround time of patients, as there are limited beds available.”