Northern Emirates Health Insurance Regulations Announced
New Northern Emirates health insurance regulations took effect on January 1, 2025, extending coverage to private sector workers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. This expansion aligns the Northern Emirates with existing policies in Abu Dhabi and Dubai, ensuring nationwide coverage.
This is a basic health insurance package for private sector employees and domestic workers in the Northern Emirates, starting from as low as Dh320 per year. This excludes value-added tax (VAT) & Federal Authority for Identity, Citizenship, Customs & Port Security fees (ICP). ICP fees of 25.20 Dhs (including VAT) remain applicable over and above (total gross premium is 361.20 Dhs).
Under the basic insurance package, there will be no waiting period for workers suffering from chronic illnesses. It covers individuals aged 1 to 64, while those over this age must complete a medical disclosure form and attach a recent medical report.
Key Points for Employers
- Employers in the Northern Emirates must provide health insurance for their employees as a condition for issuing or renewing residency permits. Coverage is mandatory for private sector employees and domestic workers.
- The basic health insurance package starts at AED 320 (approximately $87) per year. The basic plan covers individuals aged 1 to 64, with no waiting period for those with chronic illnesses.
- Maximum coverage includes AED 50,000 per year for inpatient care and AED 10,000 for outpatient care.
- The mandate does not apply to employees with work permits issued before January 1, 2024, but will become mandatory upon residency permit renewal.
- The basic plan network includes seven hospitals, 46 clinics and medical centers, and 45 pharmacies.
- Dependents from the worker’s family can access the same benefits and pricing as specified in the insurance policy.
Covered Treatments
In-patient – 20 percent co-payment subject to a deductible of a maximum of Dh500 per admission with an annual cap of Dh1,000, including medications. Beyond these limits, the insurance company covers 100% of treatment costs.
Out-patient/consultation – A 25% co-pay applies, subject to a maximum of Dh100 per visit.
Medications – 30 percent co-payments apply, with an annual cap of Dh1,500
In-patient annual limit – AED 50,000 per person-year
Out-patient annual limit – AED 10,000 per person per year
This expansion is expected to lead to growth in healthcare facilities and increased M&A activity in the insurance sector. It also aims to ensure access to basic healthcare for all employees, enhancing workforce well-being.