Employers in Dubai were reminded by the government that they must renew employees’ health insurance policies despite lockdowns related to the COVID-19 emergency. In Dubai, health insurance is a mandatory benefit for all residents and the policy is connected to foreign employees’ work visas. Without health insurance these visas cannot be issued or renewed.
The following information about the importance of renewing health insurance is from an article posted in Gulf Business on April 21, 2020.
“We fully recognise the challenges faced by organisations, sectors and communities due to the Covid-19 pandemic. We must comply with the basic need of employees which is the mandatory health insurance policy and therefore if the employee’s policy needs to be issued or renewed, the employer or sponsor should fulfil his obligation,” said Saleh Al Hashimi, CEO of Dubai Health Insurance Corporation.
According to the official news agency WAM, he added that patients require medical insurance as their basic need to receive care across government and private hospitals and health centres.
Average Health Insurance Costs for Dubai Employers
Dubai Health Authority compliant medical schemes have to meet certain minimum benefit requirements.
Essential Benefit Plan (EBP) – Dubai employees earning 4000 United Arab Emirates Durham (AED) (USD $1,088) and less are eligible for the EBP which offers the minimum benefits. This has an index rate imposed by the by the Health Authority varying between AED 500 to AED 700 (+/-25 AED) (USD$136 – $USD190), per-person per-annum (PPPA). Such plans are only offered by 12 authorized insurance companies.
Enhanced EBP – The average premium for an Enhanced EBP solution varies between AED 900 to AED 1300 PPPA or USD$245 – USD$353.
Outside of EBP and Enhanced EBP – With these solutions premium costs quickly escalate and a middle-market plan with regional coverage will average AED 6500 PPPA, or USD$1,769. A higher end International solution (excluding the US) will be in the range of AED 15,000 PPPA, or USD$ 4,083.