UAE's nationwide health insurance scheme to begin on January 1

Initiative will extend mandated insurance coverage across the emirates

Latest: New health insurance crucial for low-income workers

The UAE on Monday launched basic health insurance for all private sector and domestic workers in the country who do not have coverage. The scheme is set to go live on January 1.

The plan will extend mandated health insurance provision – in place in Abu Dhabi and Dubai – to employees in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.

The announcement by the Ministry of Human Resources and Emiratisation will establish a nationwide standard for health insurance, which was previously left to the discretion of each emirate. This meant coverage provided by employers for workers was optional in the Northern Emirates.

The decision follows a Cabinet ruling of March to create a system “for registered employees in the private sector, and the domestic workers who do not have existing health insurance”.

The strategy is being led by the ministry in partnership with Federal Authority for Identity, Citizenship, Customs, and Port Security and the Ministry of Health and Prevention, and in co-ordination with a number of insurance companies.

“The Health Insurance Scheme reflects the UAE’s commitment to extending the comprehensive protection system to all workers across the labour market, ensuring a decent life for all by providing access to high-quality healthcare services for private sector employees and domestic workers,” said Khalil Al Khoori, undersecretary of labour market and Emiratisation operations at MoHRE.

“The new Health Insurance Scheme in the UAE is poised to have a notable positive impact on the competitiveness of the country’s labour market, improving performance on key indicators related to quality of life, protection of rights, and social and healthcare security.

“It is also expected to benefit workers and employers by reducing the financial costs associated with medical treatment and unpaid sick leave uninsured workers typically need to take.”

How does the scheme work and what is the cost?

Employers are required to purchase the new health insurance policy as a condition of issuing or renewing residency permits. However, the mandate does not apply to employees with work permits issued before January 1, 2024 that remain valid, and will only become mandatory when their residency permits are due for renewal.

Starting from January 1, employers can either purchase the new insurance package through the DubaiCare Network, or any other product from accredited insurance companies through various channels, including the Insurance Pool website and smart application, as well as business service centres across the country.

The insurance policy will be be valid for two years. The second-year premium can be refunded if the visa is cancelled. The basic insurance package costs Dh320 ($87) a year, with no waiting period for workers suffering from chronic illnesses.

It covers people aged up to 64, while those over this age must complete a medical disclosure form and attach recent medical reports.

The package covers treatment expenses with a 20 per cent co-payment for inpatient care – patients in hospital for treatment or surgery. The person who is insured pays a maximum of Dh500 a visit, with an annual cap of Dh1,000, including medications. Beyond these limits, the insurance company covers all treatment costs.

For outpatient care – patients requiring medical visits, diagnostic tests, or minor procedures that do not require a hospital stay – the co-payment is 25 per cent, where the insured pays a maximum of Dh100 per visit. No co-payment is required for follow-up visits for the same condition within seven days, while co-payments for medications are capped at 30 per cent, with an annual cap of Dh1,500.

The health insurance network is made up of seven hospitals, 46 clinics and medical centres, and 45 pharmacies. Dependents from the worker’s family can have the same benefits and pricing, as specified in the insurance policy.