Small and medium sized enterprises (SMEs) play a huge role\nin the UAE economy, accounting for an estimated 95% of GDP and 90% of the\nworkforce. Translate that across the Gulf region and it makes for a lot of SME\nowners and directors agonizing over which health insurance policy to choose for\ntheir workers. Trying to maximize quality care and benefits, at a cost the\nbusiness can afford, is a minefield even for professionals. Health insurance\npolicies can start at around AED 500 per person per year and go up from there.\nIt\u2019s tempting to go for the cheapest option, but that isn\u2019t always the best\nlong-term strategy. It\u2019s important to take time to choose the right policy,\nincluding the benefits that are most important to your employees, while keeping\ncosts realistic.<\/p>\n\n\n\n
Here is a quick overview of factors to take into account\nif you\u2019re in the process of choosing or changing your provider.<\/strong><\/p>\n\n\n\n Consider your industry<\/strong><\/p>\n\n\n\n Risks posed by the work environment don\u2019t affect all workers\nequally, and there may be specific compliance and regulatory requirements to\ntake into account. For example, workers involved in manual labour on\nconstruction sites or oil rigs face additional risks that don\u2019t apply so much to\nthose sitting at a computer; especially the risk of serious accidents. You need\nto make sure your policy covers this adequately.<\/p>\n\n\n\n Consider your employees<\/strong><\/p>\n\n\n\n You may need to offer different plans to different people.\nThe type of job they do is a starting point, but nationality is also a factor.\nFor example, an employee from Germany will already rely on their home country\u2019s\nhealth service, so may not expect the same in-depth coverage as someone else.\nBut a worker from Kenya may not have any health insurance in their home\ncountry, so may need more comprehensive coverage than someone from Europe.\nThere could even be different rules for expats of the same nationality. In 2015\nthe UK National Health Service changed its rules on charges for expats living\noutside Europe who return to use secondary care services. So, UK employees who\nare officially resident in the Emirates now have to pay 150% of the cost of\nnon-UAE hospital treatment, if not covered by international health insurance.<\/p>\n\n\n\n Consider facilities<\/strong><\/p>\n\n\n\n In general, providers stipulate a specific network of\nhospital coverage, withholding reimbursement for treatment outside this. If the\nfacilities included are not close to the office or where your workers live,\nit\u2019s probably not the most useful plan. Talk to your employees to find out if\nthey already have a preferred doctor. They may have been seeing a particular\nspecialist for years and, understandably, might prefer to keep it that way. An\ninsurance advisor is particularly useful when navigating policy complexities like\nthis. And they can help you delve deeper. Does the provider offer good support\nwhen it comes to making a claim? Check up on their reputation before you sign.\nDoes the policy cover outpatient prescription drugs? A quick search on a policy\ncomparison site will tell you many do not. Drugs are costly, especially for\nchronic conditions, so insurers are wary of providing coverage outright, though\nit may be possible to negotiate coverage in certain cases. You may even want to\nconsider a co-pay on outpatient drugs and dressings to control premium\nincrease.<\/p>\n\n\n\n Consider add-ons<\/strong><\/p>\n\n\n\n Remember that all policies have specific add-ons: dental,\nhearing, vision, and disability care are prime examples. One employee survey\nfound that 70% of UAE workers are interested in supplemental health, life and\ndisability cover, even if they have to pay some of the premium. The American\nOptometric Association points out that 14% of visits to eye specialists result\nfrom computer use, and that uncorrected problems can adversely affect both worker\nperformance and comfort. So, if your workers spend all day at a computer, eye\ncare could be an attractive option.<\/p>\n\n\n\n Consider the future<\/strong><\/p>\n\n\n\n Think about your company\u2019s future plans. Do you envisage\nmaking significant changes in the next few years, such as expanding into\ndifferent countries? This is important because a policy may need to be portable\nif workers are moving to a new country, or if new employees join. You might\ndecide after a couple of years that your current provider isn\u2019t offering a good\nenough service. If you switch providers, your employees won\u2019t want to lose the\nbenefits already accumulated, especially if they are facing a waiting period\nfor pre-existing conditions. Typically, policies are only portable to ones of\nsimilar risk, and porting a policy may not be possible if the preferred new\npolicy is too different to the old one. You will also need to consider the\nportability of the policy if your employees are expats and would want to\ncontinue their cover once they leave the UAE. Different insurance companies\nalso have their own approach when dealing with new medical conditions that crop\nup during a policy year. Some place exclusions, some a cap and others specific\nrestrictions on these conditions. Knowledge of this approach is good to have as\na factor in order to have clarity and possibly avoid future disputes.<\/p>\n\n\n\n Consider policy attractiveness<\/strong><\/p>\n\n\n\n A health policy can be a powerful retention or hiring tool.\nIn an article earlier this year my colleague Tanvir Haque highlighted how a\ngood health insurance package sends a strong message to staff that the company\nis a great place to work. Numerous employment surveys seem to agree. Take the\nHays 2016 Salary and Employment report, which revealed that, alongside salary,\nbenefits are one of the main reasons why employees choose who they work for,\nregardless of industry.<\/p>\n\n\n\n Consider cost<\/strong><\/p>\n\n\n\n For most businesses, cost is a prime consideration. Your\nultimate decision is defined by what you can afford. If your main aim is a low\nmonthly premium, consider a deductible plan. In the UAE, this is common for\noutpatient costs, where the policyholder pays a fixed amount per visit, say AED\n50. Another option is co-payment, where the policyholder pays a percentage of\nthe cost; say 20% for every outpatient visit. Also acknowledge that your\npremiums will rise year on year: the average premium increase in the UAE over\nthe last five years has been 10%, and this could affect the manageability of\nyour policy. There can be different reasons for premium increases, beyond\ninflation. Some insurers drop prices to attract your business in the first\nplace. Then there is resource overuse. Patients often make unnecessary trips to\nthe doctor when pharmacist advice would have sufficed. Some doctors choose to\nprescribe branded drugs over generics, or to opt for unnecessary testing, the\n\u2018try everything\u2019 approach.<\/p>\n\n\n\n As an employer, you have some control over this \u2013 educating\nemployees about how their actions can raise premiums is a start \u2013 but you also\nneed to work with the insurance company or your advisor to address facility\noverspend. Research those hospitals that are actively tackling cost. Government\nhospitals already do this \u2013 a 2016 study in the Saudi Pharmaceutical Journal\nfound that four government hospitals in the UAE prescribed 100% of drugs as generics\n\u2013 there\u2019s no reason why private hospitals can\u2019t do it too. It is always good to\nknow the increases a plan or provider has been applying in the past and their\napproach to increases for the future. This will help you get a feel of how much\nto budget for and work out the affordability factor in the long term. The\ncurrent price to benefit ratio is important but this is an important point to\nconsider when thinking about the future.<\/p>\n\n\n\n Do your research and get advice<\/strong><\/p>\n\n\n\n Overall the message is clear. The cheapest policies are\nlikely to benefit no one but the insurance company. Really research your needs,\nand use the knowledge of insurance advisors. Finding the right policy could\ntake time, but that time will prove well spent if it results in quality\ncoverage at a quality price \u2013 ultimately attracting quality workers.<\/p>\n","protected":false},"excerpt":{"rendered":" Small and medium sized enterprises (SMEs) play a huge role in the UAE economy, accounting for an estimated 95% of GDP and 90% of the workforce. Translate that across the Gulf region and it makes for a lot of SME owners and directors agonizing over which health insurance policy to choose for their workers. Trying to maximize quality care and benefits, at a cost the business can afford, is a minefield even for professionals. Health insurance policies can start at around AED 500 per person per year and go up from there. It\u2019s tempting to go for the cheapest option, […]<\/p>\n