Roll Out of Compulsory Health Cover Announced

At a meeting yesterday the Dubai Health Authority (DHA) announced further details of the compulsory medical scheme that is due to apply from next year.

Insurance companies wanting to offer plans compliant with the DHA requirements and so be approved in resident and visit visa applications will need to apply to DHA for a permit. A list of companies holding this permit is expected to be announced in January.

The DHA scheme will become mandatory for companies with 1,000 or more employees from October 2014. Companies employing 999 to 100 employees will have until July 2015 to provide their employees with a compliant plan and those with less than 100 employees will need to have the plan in place by June 2016.

Whilst the scheme only requires that companies insure their employees, the DHA urges employers to insure spouses and dependents as this promotes staff satisfaction which in turn has been shown to provide greater productivity.

With effect from June 2016, it will be mandatory for non-working spouses, dependents and domestic workers to be insured to renew their resident visa.

Under the scheme there will be a basic plan called Essential Health Benefits which provides employees earning less than AED4,000 per month with a basic level of health insurance. This plan will cost between AED500 and AED700.

Further details will be posted as they become available. Please contact me if you have any questions.