UAE’s MoHRE Introduces Affordable Health Insurance Package for Private Sector Employees Starting at $87 Annually

The United Arab Emirates has launched a significant health insurance package for private sector employees and domestic workers, offering coverage from as low as AED320 ($87) per year. The initiative is part of the UAE government's broader Health Insurance Scheme, which aims to make healthcare more accessible and affordable for workers across the country.

The basic insurance policy, introduced by the Ministry of Human Resources and Emiratisation (MoHRE) in partnership with the Federal Authority for Identity, Citizenship, Customs, and Port Security and the Ministry of Health and Prevention, is intended for employees who do not currently have insurance. This new product is expected to address a gap in healthcare services for many private sector employees and domestic workers in the UAE.

The Health Insurance Scheme, approved by the UAE Cabinet, will expand coverage to private sector workers in Sharjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah, and Fujairah starting January 1, 2025. This move will ensure that all workers across the UAE are covered by health insurance. The system is already mandatory in Abu Dhabi and Dubai, where private sector employees and domestic workers are required to be insured.

Employers will be required to purchase the health insurance policy as part of the residency permit issuance or renewal process. However, the mandate does not apply to workers with valid work permits issued before January 1st, 2024, and will only become mandatory upon their visa renewal.

Employers' financial burden is much lessened by the recently launched insurance package, which is accessible through the DubaiCare Network and is reasonably priced with minimal treatment charges. The package provides a variety of medical treatments and covers employees ages 1 to 64.

For inpatient care, there is a 20% co-payment, with a maximum of AED 500 ($136) per visit and an annual cap of AED1,000 ($272). Outpatient care comes with a 25% co-payment, capped at AED 100 ($27) per visit. The policy also covers follow-up visits and medications, with a co-payment of up to 30% for medications, capped at AED1,500 ($408) annually.

This insurance network includes seven hospitals, 46 clinics and 45 pharmacies to cover a wide range of healthcare services. Additionally, dependents of the workers can be offered the same healthcare provisions under this insurance policy.

Starting from 1st January 2025, employers will be able to purchase the new insurance package offered through the DubaiCare Network or choose another plan from accredited insurance companies through various channels, including the Insurance Pool website, smart application, and business service centers across the UAE.

“The Health Insurance Scheme reflects the UAE’s commitment to extending the comprehensive protection system to all workers across the labor market, ensuring a decent life for all by providing access to high-quality healthcare services for private sector employees and domestic workers,” stated Khalil Al Khoori, MoHRE's Undersecretary of Labour Market and Emiratisation Operations.

“The initiative represents another major milestone in the series of accomplishments seen across the UAE labor market. It forms part of a comprehensive vision to expand the integrated social protection umbrella, which includes the Worker Protection Programme, Unemployment Insurance Scheme, and the voluntary alternative end-of-service benefits system known as the Savings Scheme.”

“The new Health Insurance Scheme in the UAE is poised to have a notable positive impact on the competitiveness of the country’s labor market, improving performance on key indicators related to the quality of life, protection of rights, and social and healthcare security.”

“It is also expected to benefit workers and employers by reducing the financial costs associated with medical treatment and unpaid sick leave uninsured workers typically need to take.”

Major General Saeed Salem Balhas Al Shamsi, Acting Director-General of Identity and Foreigners Affairs at the Federal Authority for Identity, Citizenship, Customs, and Port Security, stated:? “Launching the new basic Health Insurance Scheme for private sector employees and domestic workers is a critical step towards completing the UAE’s health insurance framework and providing healthcare to all groups.”

“This essential step aligns with the wise leadership’s vision to enhance the community’s quality of life, uphold human rights, and ensure healthcare access for all. It is set to boost productivity and support sustainable development while advancing the UAE’s leadership and global competitiveness across international indicators.”

He added that the approval of the health insurance system reflects the UAE’s humanitarian and civilized commitment, reaffirming its dedication to upholding international human rights conventions and providing healthcare to all residents on its land.

Al Shamsi said: “The Federal Authority for Identity and Citizenship, Customs, and Ports Security is pleased to be playing its part in this plan to enhance the competitiveness and attractiveness of the UAE labor market, by establishing an electronic link with our strategic partners including Ministries, government entities, and private sector institutions – particularly in the insurance industry.”

“The Authority’s role is to verify that workers in the private and business sectors, as well as domestic workers, are covered by insurance before issuing residencies, to protect workers’ rights and ensure they receive healthcare.”

Meanwhile, Dr. Mohammed Salim Al Olama, Undersecretary at the Ministry of Health and Prevention, said: “Launching the Health Insurance Scheme for private sector employees and domestic workers forms part of an integrated framework of national efforts that strive to enhance quality of life in the UAE and ensure the sustainability of healthcare services.”

“The system reflects our commitment at the Ministry of Health and Prevention to enhancing quality and developing a sustainable and inclusive healthcare system. The new Scheme will strengthen the health ecosystem, expand the scope of its services to include all groups, and establish a more stable and advanced environment.” He added.

“The initiative will strengthen early disease detection, improve emergency preparedness, and support chronic disease prevention, aligning with the Ministry's strategy for a preventative, integrated healthcare system through innovative policies and public health services.”

“It will also enhance the "Riayati" platform, part of the National Unified Medical Record (NUMR) and Population Health Management projects. By including these groups in insurance coverage, it expands the national health database, improving health research, strategic planning, and resource allocation. These efforts support the healthcare sector's development, boosting its competitiveness and aligning with the UAE’s national priorities.”