The truth about raising health insurance prices for UAE residents
The truth about the UAE issuing a decision to raise health insurance prices for residents before 2024
Nearly a dozen insurance providers in the UAE have recently raised their premium rates, some by as much as 35 percent, which means that citizens of the UAE will have to fork out more money for their health insurance.
"The first sign of a rise in rates was made in August of 2023, and this trend persisted through September and October. In the middle of October, an insurance company implemented their most recent rate adjustment. According to Toshita Chauhan, business head for health and auto insurance at PolicyBazaar.ae, "the average pricing has increased between 10 percent and 35 percent, depending on the age of the applicant."
According to executives in the industry, health insurance premiums have been continuously rising since the epidemic by between 15 and 20 percent on an annual basis owing to the rise in the cost of medical care.
In the United Arab Emirates (UAE), mandatory health insurance was implemented a few years ago, and it is now the responsibility of the employer to provide workers with health insurance coverage. However, if the employer is not providing insurance for children, then parents will have to purchase health insurance for them as they are under their sponsorship.
The United Arab Emirates (UAE) has a health insurance industry that is on par with the best in the world, which has resulted in a significant increase in the number of medical tourists visiting the nation. A total of 674,000 medical tourists visited Dubai alone in 2017, spending a total of Dh992 million. This represents an increase of Dh262 million in comparison to the previous year.
Chauhan said that the minimal premium for the basic plan offered by the Dubai Health Authority (DHA) to workers with monthly incomes of less than Dh4,000 has remained the same.
However, the new price for basic insurance with reference to workers earning more than Dh4,000 per month has risen by 10% for married women between the ages of 18 and 45. This increase applies to employees in the United Arab Emirates. While those women whose husbands are sponsoring them have seen a price hike of 20% to 30%, Chauhan noted that other women have not seen such an increase.
According to Moin Ur Rehman, executive director of Unitrust Insurance, rates for basic plans have not changed. On the other hand, premiums for standard policies that are based on age bands have risen.
"This increase in premiums can be attributed to several factors, such as cost pressures brought about by medical inflation, increasing cost of medical treatments, drugs, and medical technology, as well as the aging population and the prevalence of chronic diseases. In addition, the cost of medical care continues to rise." Any negotiations that are conducted between insurance companies and healthcare providers are based on the DHA-approved gross price list hence increased rates are very much approved by the DHA,” said Rehman
Toshita Chauhan recommended that locals get an insurance policy as soon as they can, not only because they should be concerned about steadily increasing premiums, but also because they should want to be certain that they are protected in the event of a crisis.