100% coverage for Dh320: Everything you need to know about UAE’s new health insurance rule for workers
Employers must purchase health insurance for residency permits with effect from Jan 1, 2025
The United Arab Emirates (UAE) has rolled out a mandatory health insurance policy for all private sector employees and domestic workers across the country, effective from January 1, 2025.
This new scheme extends the existing policies in Abu Dhabi and Dubai to the rest of the UAE, ensuring that workers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah are also covered.
With a reasonable cost of Dh320 per year, the policy promises to deliver a range of benefits to both workers and employers.
UAE health insurance policy
This development marks a milestone in the UAE’s ongoing commitment to providing comprehensive healthcare for all its workers. Previously, health insurance was mandatory only in Abu Dhabi and Dubai. Now, with this national policy, employees across all seven emirates are entitled to basic health coverage.
The new law requires employers to provide this insurance as a prerequisite for the issuance or renewal of residency permits, streamlining the process and making healthcare more accessible.
Cost: At a nominal annual cost of Dh320, the new insurance scheme provides workers with an affordable way to access medical care.
Validity: The policy is valid for two years, with the second year’s premium refundable if the worker’s visa is cancelled. This low cost makes it a win-win for employers, who can now provide health insurance for their employees without incurring hefty treatment costs, and employees, who gain access to a wide range of medical services.
Inpatient Care: Workers can access inpatient care with a 20% co-payment, capped at Dh500 per visit, and a maximum annual cap of Dh1,000. After this limit, the insurer covers 100% of inpatient treatment costs.
Outpatient Care: For outpatient visits, the policy requires a 25% co-payment, capped at Dh100 per visit. Any follow-up visits for the same condition within seven days will not incur any co-payment.
Medication Coverage: Medication co-payments are set at 30%, with an annual cap of Dh1,500, further ensuring that workers are not financially strained when purchasing essential medicines.
Chronic Patients: A notable feature of this policy is its immediate coverage for workers with chronic conditions. Unlike many other insurance schemes, there is no waiting period for workers with pre-existing health conditions, ensuring that they can receive treatment right away. Workers aged up to 64 years are automatically covered, while those above 64 need to submit medical disclosures before being insured.
Who will pay for health insurance?
Private sector employees and domestic workers are the primary beneficiaries of this policy. Employers must purchase insurance for workers to renew or issue residency permits. Workers with valid permits before January 1, 2025, are exempt until their permits come up for renewal. This mandatory coverage is designed to ensure that no worker in the UAE is left without medical care.
For workers who also support dependents, the scheme offers them the same benefits and affordable pricing. This inclusivity extends the benefits of healthcare to workers' families, reducing the financial burden on both workers and employers.
Easy for employers
Employers can purchase the health insurance through multiple channels, including the DubaiCare Network and accredited insurance providers. Platforms like the Insurance Pool website and business service centres across the UAE also offer easy access to purchasing policies.
With these convenient options, employers can quickly comply with the new regulations.
The Ministry of Human Resources and Emiratisation (MOHRE) and the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) have streamlined the system for issuing residency permits, ensuring that workers’ insurance status is checked before permits are granted.
The affordable cost of the insurance policy significantly reduces employers’ operational expenses compared to the cost of covering workers' medical treatments without insurance. This affordable healthcare package is an investment in the health and wellbeing of employees, enhancing workplace productivity and improving overall worker satisfaction.
Impact on National Healthcare System
This policy also supports the UAE’s broader healthcare goals by contributing to the Riayati platform, part of the National Unified Medical Record initiative. The integration of health data helps improve research, planning, and resource allocation across the UAE’s healthcare system. By expanding insurance coverage, the country is building a more comprehensive national health database, which will be instrumental in disease prevention and emergency preparedness.