The mandatory health insurance announced by Dubai Health Authority

The mandatory health insurance announced by Dubai Health Authority (DHA) last week has raised fears of a possible hike in prices of services and products across the board including hospitals, clinics, retail outlets and even restaurants in Dubai.

Dr Ayham Refaat, founder of insurance consultant Accumed PM, said one of the main challenges for the market when compulsory health insurance rolls out next year will be to maintain financial sustainability.

“Mandatory coverage will mean greater, even over-utilisation of healthcare services as more people will go to a doctor. It remains to be seen if hospitals and clinics will increase their charges and if insurance companies will push up their prices and premiums.”

He said insurance for all could impact the cost of living. “Health cover will impact the balance sheet of companies and businesses as they strive to go beyond the basic coverage to be competitive in the market. This in turn may push them to increase prices of their products or services.”