Cancer patients and older residents who say they have been unfairly priced out of health insurance renewals have been urged to report companies to the Dubai Health Authority. Some claim they have little choice but to pay inflated policy fees despite being given a clean bill of health, while those with pre-existing conditions also claim they are being targeted with unaffordable health insurance renewal quotes, which are mandatory for most UAE residents.
One resident told The National her policy increased from Dh24,000 to Dh107,000, while a man who recently recovered from a stroke said premiums for himself and his wife had soared from Dh7,000 to Dh99,000.
Under Dubai Health Authority rules, medical insurance premiums cannot increase by more than 100 per cent per annum for each medically diagnosed condition.
Breaching DHA rules
People facing more expensive health insurance costs in Dubai can request insurers to justify any increase exceeding 100 per cent and then lodge a complaint with the health authority.
insurance lawyer
“The Dubai Health Authority (DHA) has established clear guidelines to protect consumers from excessive premium increases,” a representative said.
“According to DHA regulations, insurers are permitted to increase premiums by a maximum of 100 per cent per medically diagnosed condition during the renewal process.
“This ensures fairness for policyholders, preventing disproportionate increase in premiums and at the same time ensures financial sustainability of the health insurance ecosystem.
“The DHA’s Dubai Health Insurance Corporation is committed to safeguarding consumers and ensuring transparency in health insurance practices.”
An official complaint can be filed on the DHA’s website www.dha.gov.ae, alternatively people can contact Customer Care at 800 342.
Simon Isgar, a specialist in international health regulation and insurance law, said consumers often face challenges because of a lack of information.
“The law is the law and this is fundamentally a breach, so insurers are open to sanctions,” Mr Isgar said.
“But there is a lack of awareness of the regulations and the penalties in the market, and among consumers.
“Policyholders need to be aware there is a line, so it's getting that message across so they can challenge the local insurance market or underwriting department.”
Medical inflation
Neil Anderson, 60, who lives in Ras Al Khaimah, purchased insurance in 2017 that covered extensive care for him and his wife, Amanda, 55.
“Following my wife’s breast cancer diagnosis and my thrombosis, our premiums rose sharply,” said Mr Anderson. “Our insurer attributed premium hikes to market conditions and underwriters.”
In 2022-2023, Mr Anderson and his wife were quoted $15,521 and $13,438 respectively for annual health insurance. When they came to renew for 2023-2024, the new dual policy was $37,486 – an increase of $8,527, or about 29 per cent.
The couple were told the increase was caused by medical inflation. But according to industry analysts WTW, regional medical inflation increased from 2.6 per cent in 2022 to 4.2 per cent last year.
“We have recently been notified – just three weeks before renewal – of a 100 per cent premium increase, this was later reduced to 50 per cent after we complained,” said Mr Anderson, who runs a business that employs several people in RAK.
“This is unsustainable given our business income, forcing us to consider discontinuing the policy. Without affordable alternatives, we may face closure of our business and relocation.”
Increased costs
With climbing cancer rates, obesity and related chronic health conditions on the rise, more people are likely to face increasing insurance costs, experts said.
“This is not unusual,” said Stephen Maclaren, director of corporate solutions at Seven insurance brokers.
“Cancer is becoming more common, as are all these chronic conditions.
“There'll be more people suffering from that in terms of insurance premiums, as a new insurer will underwrite them to not lose money and price [a plan] accordingly. But it's within the rules.”
Anthony Iceton, 69, lives with his 55-year-old wife and eight-year-old son. He worked as an engineer in Dubai and Abu Dhabi for 26 years. Now retired, Mr Iceton's insurance costs have increased, despite having a clean bill of health and undergoing no recent treatments.
“When my wife opened her own office, we all had to get our insurance,” he said. “I had to spend more than Dh7,000 on tests, and then the premium I was offered was close to Dh30,000, whereas before I was 65 it was around Dh12,000.
“The problem is this year, some insurance companies have got a 100 per cent premium on people my age. If it goes to Dh60,000, we may have to leave.
“Even though we own our own property here, it might become non-viable for us to stay, purely because of the expense.”
Global medical care costs reached a historic high last year, with the medical trend rate climbing into double digits for the first time. However, the WTW 2024 Global Medical Trends Survey revealed near-term improvements.
After surging from 7.4 per cent in 2022 to a high of 10.7 per cent last year, the trend for 2024 is projected to decrease to a global average of 9.9 per cent.
Finding alternatives
Some insurers have developed new products to fill the gap for those unable to pay for long-term health cover.
An insurance plan designed for senior citizens in the UAE has just been launched called Vibrance Senior. The initiative between Dubai Insurance and Aster DM Healthcare aims to fill the gap in health coverage for older people, with 24-hour care offered online and through mobile phone.
The plan offers complete support for managing chronic conditions, ensuring long-term health and well-being, with premiums starting at Dh16,700.
Another solution to counter so called price-gouging is membership of collectives, offering top-ups to existing policies to cover the extra care costs for health issues that become more common in old age.
The British Social Club is an example of a non-profit organisation approved by the Community Development Authority to support Britons when insurance policies fall short.
The group’s policy, BritCare is provided by Orient and underwritten by Allianz, and aims to fill a gap that many insurers are leaving wide open when people fall into ill health. Costs for extensive cancer care, such as radiotherapy, chemotherapy and related surgery can run into the hundreds of thousands of dirhams.
