Guide to mandatory health insurance in UAE

Health insurance is a key agreement between you and an insurance company to shield you in times of medical uncertainty. With this type of insurance, you can manage the financial burden of unexpected events — serious injuries, hospitalisations, and emergencies — and also get benefits like maternity coverage. 

In this article, we will explore which emirates in the UAE have made health insurance mandatory and provide details on what the basic Essential Benefits Plan (EBP) includes.

Is Health Insurance Mandatory in UAE?

Health insurance is already a mandatory requirement in Abu Dhabi and Dubai emirates. 

Comprehensive healthcare programs like the Thiqa and Enaya systems regulate it. These programs ensure that all residents, including expatriates and their dependents, have access to necessary medical services. 

Starting from January 1, 2025, this requirement will extend to all private sector employees across all the Emirates, including Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. 

Employers will be responsible for the health insurance of their employees.

This expansion of universal healthcare coverage is expected to enhance the overall well-being of the population. It marks a significant step in ensuring that all residents of the UAE have access to quality healthcare services.

Health Insurance Mandatory in Dubai

Dubai has been at the forefront of healthcare reform in the UAE. It established its mandatory health insurance for all residents in 2014. 

This pivotal move by the Dubai Health Authority (DHA) helped residents (both UAE Nationals and expats) get access to essential health services without facing financial hardship.

Key Details

1. Implementation Year: Health insurance became mandatory in January 2014
2. Purpose: To provide access to healthcare and manage overall healthcare costs
3. Regulatory Body: The Dubai Health Authority (DHA) regulates and oversees health insurance
4. Basic Coverage Includes
   • Inpatient and outpatient care
   • Emergency services
   • Surgical procedures and medical testing
   • Prescription medications
   • Maternity care
   • Annual coverage limit of around AED 150,000
5. Employer Responsibility
   • Mandatory for employers to provide health insurance to their employees
   • Providing coverage for dependents is optional and subject to the employer's discretion
   • Non-compliance can result in heavy penalties

Health Insurance Mandatory in Abu Dhabi

Health insurance has been mandatory in Abu Dhabi since 2006. 

1. Start Year: Starting June 1, 2006
2. Objective: To provide all residents, including expats and their dependents, with access to necessary healthcare services and to control healthcare costs
3. Regulating Bodies: The Health Authority Abu Dhabi (HAAD) regulates the health sector for compliance with health insurance Abu Dhabi laws. 

In addition, Abu Dhabi Health Services Company (SEHA) manages government-owned healthcare facilities.

1. Basic Health Insurance Coverage Requirements: Coverage includes primary care, emergency services, surgeries, tests, maternity care, and more
2. Employer and Employee Responsibilities

• Health insurance coverage is a prerequisite for obtaining or renewing a residency visa in Abu Dhabi.
• Employers must provide health insurance not only to employees but also to their dependents, which typically covers one spouse and up to 3 children under the age of 18 years.
• Employers are required to cover at least 50% of the insurance premiums for dependents, with the remaining cost borne by the employee.

Latest Updates in Health Insurance Coverage in Other Emirates

As the UAE strides toward universal health coverage, recent expansions in mandatory health insurance policies mark significant progress. 

Historically, the focus was primarily on Abu Dhabi and Dubai. However, the recent initiatives have now broadened the scope to include other emirates like Sharjah, aiming to encompass all regions by 2025.

Sharjah’s Initiative

1. Start of Coverage: Initially, mandatory health insurance in Sharjah was limited to government employees, their dependents, and senior citizens over the age of 60.
2. Expansion: In January 2020, this coverage was extended to include all citizens of Sharjah. This enhances healthcare accessibility and affordability for all residents. 

Planned Extensions

1. Future Coverage: Following Sharjah's lead, plans are underway to implement mandatory health insurance across the remaining emirates — Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain.

Implementation Date: This expansion is scheduled to be fully operational by January 1, 2025. It is part of a nationwide initiative to ensure that every resident in the UAE has health insurance coverage.

Mandatory Health Insurance for UAE Private Sector Employees 2025

As mentioned above, starting January 1, 2025, the UAE will implement mandatory health insurance for all private sector employees and domestic workers. 

Now all employers are responsible for providing health insurance to their employees upon the issuance or renewal of their residency permits. This policy will provide comprehensive healthcare access to a significant portion of the workforce across all emirates. 

Key Details of Mandatory Health Insurance in 2025 

1. Scope of Coverage: The insurance will cover private sector employees and domestic workers, including those who previously did not have insurance coverage.
2. Employer Responsibility: Employers are mandated to cover the health insurance costs for their employees. This includes the cost of premiums. 
3. Coverage Requirements: The mandatory health insurance will include essential medical services such as doctor visits, hospitalisation, and medications.
4. Implementation: The policy will be enforced across all emirates, expanding the scope of previously existing laws in Abu Dhabi and Dubai.
5. Compliance and Penalties: Employers must comply with this mandate to avoid penalties, which could include fines and issues with processing residency visas.

What are the Benefits of Mandatory Health Insurance in UAE?

Listed below are the key benefits of mandatory health insurance in the UAE — 

1. Access to Quality Healthcare: The primary goal of these expansions is to provide every resident with access to quality healthcare services. This aligns with the UAE's vision to improve the overall health and well-being of its population.
2. Economic Impact: Besides improving health outcomes, the widespread implementation of health insurance is expected to boost the healthcare sector economically by increasing the demand for medical services and creating more jobs.

Over to You

As Dubai and Abu Dhabi have long enforced mandatory health insurance, their residents have experienced the benefits of assured access to quality healthcare. This security has contributed to a higher quality of life and enhanced productivity among employees and domestic workers. 

Building on this success, the UAE government is extending this mandate to cover all emirates by 2025. This initiative will make sure that every worker across the UAE enjoys the same level of healthcare accessibility, fostering a healthier and more secure workforce.