Employers must buy health insurance for workers to renew or issue residency permits

Dubai: From January 1 2025, all private sector employees and domestic workers in the UAE are required to have basic health insurance coverage. This new policy extends mandatory health insurance, already in place in Abu Dhabi and Dubai, to the remaining emirates – Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.

Policy overview

In December 2024, the Ministry of Human Resources and Emiratisation (MOHRE) introduced the Health Insurance Scheme approved by the UAE Cabinet. This initiative, developed in collaboration with the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP), the Ministry of Health and Prevention (MOHAP), and several insurance companies, aims to extend insurance coverage to all workers in the UAE.

 Key highlights of the policy

 Who is covered?

• Private sector employees: All employees working for private companies in all emirates.
• Domestic workers: All domestic workers employed within the UAE.

 Does it also cover the employee’s family?

Dependents from the worker’s family can access the same benefits and pricing, as specified in the insurance policy, according to MOHRE.

Who is responsible for purchasing health insurance?

Employers are required to obtain the new health insurance policy as a condition for issuing or renewing residency permits. Starting from January 1, 2025, 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.

According to MOHRE, the DubaiCare Network offers competitive pricing and nominal treatment costs, reducing the financial burden on employers. This affordable solution is significantly less expensive than covering treatment costs out-of-pocket, helping employers lower operational expenses.

When does the new health insurance requirement apply to workers?

Employees with valid work permits issued before January 1, 2025 are exempt until their permits come up for renewal. The new policy becomes mandatory upon renewal of residency permits.

 Is health insurance mandatory for UAE residency permits?

Health insurance is now a mandatory requirement for UAE residency permits. The ICP, a key implementing body for the new policy, ensures that workers in the private and domestic sectors are insured before issuing or renewing residency permits.

 Details of the health insurance package

• Cost: Dh320 annually, with no waiting period for pre-existing conditions.
• Validity: Two years – the second-year premium is refundable if the visa is cancelled.
• Age coverage: Workers aged up to 64 years old are eligible. Workers above this age must provide medical disclosures.

 Coverage breakdown

• Inpatient care – 20 per cent co-payment capped at Dh500 per visit, with an annual limit of Dh1,000. Beyond these limits, the insurer covers 100 per cent of costs.
• Outpatient care – 25 per cent co-payment capped at Dh100 per visit. Follow-up visits for the same condition within seven days require no co-payment.
• Medication co-payments are capped at 30 per cent, with an annual limit of Dh1,500.
•  Health network – Includes seven hospitals, 46 clinics, and 45 pharmacies.

 Benefits for employees:

• Improved access to healthcare: Ensures all workers have access to essential medical services.
• Early disease detection: Facilitates early diagnosis and treatment of health issues.
• Reduced financial burden: Provides financial protection for employees and their families.
• Enhanced healthcare system: Contributes to a more comprehensive and accurate national health database.

Dubai: If you are covered by a basic health insurance plan, it is essential to understand the scope of your coverage. This knowledge will be crucial in the event you need treatment or surgery, particularly in emergencies, to avoid unexpected out-of-pocket expenses. To help Dubai residents with the basic package understand their coverage, the Dubai Health Authority (DHA) recently shared the following information:

 Where can I receive treatment under the basic benefits plan?

According to the DHA, you should first ensure you have the following:

• A certificate confirming your enrolment in the plan from your insurance provider.
• Access to your insurance network – a list of healthcare providers where you can receive services (such as hospitals, clinics, etc.). Your insurer (or its third-party administrator) will have a network of providers in Dubai and possibly in other emirates.

What is covered under basic insurance in Dubai?

According to the DHA’s website (dha.ae), the basic benefits include:

• Pre-existing conditions
• Basic healthcare services (in-patient treatment at authorised hospitals)
• Out-patient services in authorised clinics, hospitals, and health centres
• Maternity services
• Preventive services
• Vaccines and immunisations

Excluded healthcare services are only covered in cases of medical emergencies.

 What is covered?

Treatment for chronic diseases and pre-existing conditions is included without a waiting period, which is a key benefit as most insurance policies typically do not cover such conditions during the first six months of the policy. The insurance network covers seven hospitals, 47 clinics, and medical centres, as well as 44 pharmacies.

Patients can also access telehealth services, including medical consultations via phone or online, enabling them to receive advice and treatment without needing to visit a clinic or hospital. These services are provided without any co-payment, except for pharmacy services.