In the UAE, foreign nationals make up around 89% of the overall workforce. For many of these individuals, grasping the intricacies of healthcare insurance in the region can be challenging. This article aims to simplify the distinction between group and individual healthcare, helping your employees to determine the best option for themselves and their dependents.
Group medical insurance in the UAE
Since 2014, employers in Dubai and Abu Dhabi have been legally obligated to provide medical insurance to their employees. In Abu Dhabi, this obligation extends to the employee's spouse and up to three children below the age of 18.
While some employers choose the most basic group healthcare plans available to fulfil their legal requirements, opting for a comprehensive package can have significant benefits. By selecting tailored plans that cater to the unique needs of your employees, like the ones offered by GulfCare, you can enhance employee retention and improve overall productivity within your business.
To learn more about group health insurance and how choosing a more comprehensive package can lead to a higher ROI, click here.
Individual medical insurance in the UAE
Choosing individual health insurance instead of opting for the group medical insurance offered by the business can be beneficial for individuals seeking a plan that caters more specifically to their needs, rather than the collective needs of all employees.
However, it is important to note that opting for a more comprehensive package in individual insurance plans can significantly increase the premium, especially for individuals with a history of illness or pre-existing conditions. This is because personal insurance policies typically involve a health risk assessment, where the insurer collects information regarding the individual's physical and mental health, habits, behaviors, and potential health risks. This assessment allows health insurers to accurately evaluate the client's premium and provide them with suitable health coverage.
The benefits of group medical insurance
While group medical insurance is mandatory in both Dubai and Abu Dhabi, it is still helpful for employees to have a clear understanding of what is typically included in such coverage and the advantages it offers.
1. More cost-effective
One of the significant advantages of group health insurance is its cost-effectiveness. By pooling the risk of a larger group, insurers can offer more competitive premiums compared to individual health insurance. This cost-sharing model alleviates the financial burden for both employers and employees, making it an appealing choice for organizations of any size.
2. Simplified underwriting process
Group health insurance premiums are often based on the collective risk of the entire group, taking into account factors such as the average age, gender distribution, and overall health profile of the group.
This means that group health insurance typically involves simplified underwriting, or even no underwriting at all. In other words, individual members within the group are not individually assessed for their health risks during the application process. Instead, group health plans have a guaranteed issue provision, meaning that eligible members are automatically accepted for coverage without medical underwriting, or exclusions or exorbitant premiums, as a result of pre-existing conditions.
The guaranteed provision aspect also means that GulfCare offers a ‘zero’ waiting period. This means that an employee who joins a company’s group health insurance plan is immediately covered, so that the employee can get reimbursement or cashless hospitalization in case of a medical emergency from day one. To learn more about waiting periods, click here.
3. Comprehensive coverage
Group health insurance plans typically offer comprehensive coverage that extends beyond what individual health insurance provides. These plans often encompass benefits such as preventive care, prescription drugs, mental health services, and maternity coverage. By offering a broad range of benefits, employees have access to the necessary healthcare services without incurring significant out-of-pocket expenses.
Why GulfCare?
GulfCare is a leading regional provider of premium group health insurance. We work with companies of all sizes and structures across the GCC, to provide tailored insurance plans which encompass treatments, preventative care, and services such as tele-health services, a Chronic Medication Scheme (CMS), and an Employee Assistance Program (EAP).
This bespoke approach to health insurance means that our partner businesses are able to select a plan that balances coverage and cost-effectiveness, tailored to the needs of their employees.
To learn more about GulfCare’s range of services and fully tailored group healthcare plans, get in touch today.
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