Over the past few days, this newspaper has documented ways in which the health service is changing and developing. The costs to health insurers of treatment are increasing and one factor, according to the chief executive of Daman, is that patients do not know – or much care – how much their treatment costs. That has an indirect effect on increasing costs for insurers.
The same applies to generic drugs, but from a different direction. Here, it is the health care providers who prescribe branded drugs when generic ones would do just as well. In that they are sometimes aided by patients who prefer the better known name, despite the ingredients and effect of the medication being the same. The end result is that the insurers foot the bill – to the tune, according to industry experts, of an extra Dh2.3 billion a year.
This pressure, combined with the general downturn in the economy, means that health insurers are seeking ways to reduce costs. On the consumers’ side, insurers such as Daman are looking to offer incentives for those who lead healthier lifestyles. On the health provider side, the insurance industry is pushing for government involvement, asking health regulators to encourage doctors to prescribe more generic drugs.
The most visible sign of this for most people will be the reduction in their health insurance coverage, which has left some people looking for private health insurance to “top up” what their employers offer.
Naturally, this re-engineering of the health care system can make consumers concerned, especially if the pace of change is too rapid. But the UAE’s insurance industry is still developing and requires constant revision to make it more effective and more efficient, as well as better value for money.
The system may require root and branch reform to bring it up to date. After all, it was created at a time when the population was much smaller. Today, as a much larger country, and one facing pressure from oil prices, changes need to be made to the health care infrastructure. That is, changes to both how we treat people and how we pay for it.
In the long run, the changes must be judged on whether they deliver the same, or better, care for a lower price. That will be the real test of the new system.
