In 2025, mandatory health insurance will be extended to cover all workers in the UAE at an affordable rate and reasonable benefits.
Starting 1 January 2025, all private sector employees and domestic workers in the UAE are required to have basic health insurance coverage. The decision extends mandatory health insurance to the UAE northern emirates including Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. Abu Dhabi and Dubai have already started implementing mandatory health insurance several years ago.
The UAE Ministry of Human Resources and Emiratisation (MoHRE) said that starting this month, employers are required to purchase the new health insurance policy as a prerequisite for issuing or renewing residency permits through the DubaiCare Network or through any of the other approved suppliers.
Coverage details
the MoHRE, in collaboration with the Federal Authority for Identity, Citizenship, Customs, and Port Security, and the Ministry of Health and Prevention, introduced the Basic Health Insurance package, offering a competitive price with nominal treatment costs for private sector employees and domestic workers across the UAE.
Private sector employers and domestic workers' employers are responsible for the financial obligations of the health insurance upon the issuance or renewal of any residence permit, starting from 1st January 2025, said the MoHRE. The Scheme offers its package at the competitive price of AED320 ($87) per year.
- Inpatient care: 20% co-payment paid by the insured up to AED500 per visit and up to AED1,000 per year. Amounts above this limit are covered 100% by the insurance company.
- Outpatient care: 25% co-payment with a maximum of AED100 per visit is payable by the insured. Co-payment is not required if a follow-up visit is scheduled within seven days of the initial appointment.
For medications, an annual co-payment of 30% is covered, capped up to AED1,500.
A boost to the insurance sector
On the back of implementing mandatory health insurance schemes in Abu Dhabi (in 2005) and Dubai (in 2014), health insurance business grew significantly in the UAE. By the end of 2023, health insurance premiums reached AED25.9bn, accounting for around 48% of the market’s AED53.4bn premium income.
With the introduction of the new scheme, the Basic Insurance Scheme, insurers in the UAE expect to further grow this line of business. The MoHRE stated that employers can purchase the policy through the DubaiCare Network or any other accredited insurance provider. Options are available via multiple channels, including - the Insurance Pool website and business service centres across the UAE.