Health insurance in Abu Dhabi became compulsory in 2005. Although it was not enforced initially, Law No. 23 of 2005 made it mandatory for all employers in the emirate to provide medical insurance coverage for their employees and their dependents. In 2009, the Health Authority in Abu Dhabi (HAAD) finally started enforcing the Abu Dhabi Health Insurance Law.
The Basic Health Insurance Policy was created for employees with low salaries in order to provide a cost-effective solution for employers. Until today, the product is exclusively offered by Daman, and is subsidized by the Abu Dhabi Government.
Fast forward to 2014, and the Dubai Health Authority rolled out its long-awaited Health Insurance Law (also known as ISAHD), making it mandatory for all residents of Dubai to be insured. Phase 2 of the roll-out plan will be completed by the end of July 2015, when all companies with 100 to 999 employees will be required to provide coverage for their staff. By the end of July 2016, every resident, including dependents and domestic workers, will need to have medical insurance as well.
Similar to HAAD requirements, a cost-effective solution for low-salaried employees is available from insurance companies in Dubai. Unlike Abu Dhabi however, the basic medical policy in Dubai, known as the Essential Benefits Plan, is provided by several insurers.
So how do the two health insurance plans compare? Here is a look at the government-mandated policies offered in Abu Dhabi and Dubai for low-salaried employees:
|
|
Basic Plan |
Essential Benefits Plan |
|
Regulator |
Health Authority in Abu Dhabi (HAAD) |
Dubai Health Authority (DHA) |
|
Insurance Providers |
Daman |
Axa, MetLIfe, Daman, Oman Insurance, Orient Insurance, RAK Insurance, Takaful Emarat |
|
Salary Eligibility |
Up to AED 5,000 monthly salary (or up to AED 4,000 plus accommodation) |
AED 4,000 |
|
Premium |
AED 600 |
AED 700 |
|
Annual Limit |
AED 250,000 |
AED 150,000 |
|
Areas of Cover |
Restricted to Abu Dhabi with emergency medical treatment available in all emirates |
Restricted to Dubai with emergency medical treatment available in all emirates |
|
Pre-existing Conditions |
Covered with a 6 month waiting period |
Covered with a 6 month waiting period |
|
Hospital Room Type |
General room (2 or more beds) |
General room (2 or more beds) |
|
Deductible |
AED 20 per consultation |
20% co-insurance up to AED 500 (annual cap for the entire year is AED 1,000) |
|
Prescriptions |
30% co-insurance up to a limit of AED 1,500 |
30% co-insurance up to a limit of AED 1,500 |
|
Child Delivery |
Deductible of AED 500 per delivery |
10% co-insurance with limit of AED 7,000 for normal delivery and AED 10,000 for medically necessary C-section |
|
Maternity Checkups |
AED 20 per consultation |
10% co-insurance with a limit of 8 visits to obstetrician |
Keep in mind that each of the plans is only available if you have a residency visa issued in the respective emirate and your salary does not exceed the eligibility requirements. While the Abu Dhabi Basic Plan provides better benefits than the Essential Benefits Plan, it must be noted that the Abu Dhabi Government subsidizes the plan. This means that while the policyholder, or their employer, are paying only AED 600 annually for the plan, the insurance company is receiving an additional sum from the Government. This is the key reason the plan provides better benefits at a lower cost when compared to Dubai’s minimum benefits package.
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