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As of January 1, 2025, the Ministry of Human Resources and Emiratisation has officially launched its low-cost health insurance scheme, providing coverage for private sector workers and domestic helpers across the UAE. This initiative is designed to bridge the healthcare gap, making sure that all employees especially low-income earners have access to essential medical care at an affordable price.

The scheme is now fully operational in the Northern Emirates, including Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. This expansion follows the successful mandatory health insurance programs already in place in Abu Dhabi and Dubai.

For years, health insurance Dubai and Abu Dhabi's mandatory health insurance policies have set the benchmark for employer-sponsored coverage. However, workers in the Northern Emirates had limited access to comprehensive medical care. With this new policy, the UAE is bridging the gap, making sure every worker has access to essential healthcare services at an affordable manner.

But what does this mean for employees and employers? Let’s break it down.

Why Is This Health Insurance Scheme Pivotal?

For many low-income workers, health insurance UAE was previously a challenge. Without a mandatory scheme in place for those working in the Northern Emirates, healthcare was often an out-of-pocket expense, making it difficult for workers to access quality medical care without taking a financial risk.

This new affordable health insurance Dubai and UAE-wide initiative guarantees that workers receive comprehensive medical coverage without financial strain. Here’s why it’s such a significant development:

Affordable Premium

At just AED 320 per year, this plan offers one of the most budget-friendly health insurance options available in the UAE.

Access to a Wide Medical Network

Employees can seek treatment at seven hospitals, 46 clinics, and 45 pharmacies across the country.

Coverage for Chronic & Pre-existing Conditions

Unlike some low-cost policies, this plan covers pre-existing conditions from day one, without any need for a waiting period.

•Inpatient & Outpatient Care

Inpatient services: 20% co-payment, capped at AED 500 per visit and AED 1,000 annually.

•Outpatient services: 25% co-payment, capped at AED 100 per visit.

Optional Dependent Coverage

Employees' families can opt into the same insurance package thus opening a way for gaining broader healthcare coverage for loved ones.

Refundable Second-Year Premium

If a worker’s visa is canceled, the policy’s second-year premium is refundable, adding extra financial security.

This initiative is a significant step toward universal health insurance in the UAE and to provide equal healthcare access for all workers, a move that aligns with the UAE’s commitment to workforce well-being and economic sustainability in the country.

What Employers Need to Know About the New Health Insurance Mandate

With this new scheme, employers in the UAE’s private sector and sponsors of domestic workers are now required to provide health insurance before issuing or renewing employees’ residency permits.

The policy applies to all new visas issued on or after January 1, 2025, and for existing workers, employers must enroll them upon visa renewal.

Employer Responsibilities Under the New Health Insurance Plan

• Ensure all employees are insured before issuing or renewing work permits.

• Cover the AED 320 insurance premium without deducting it from workers' salaries.

• Select an accredited insurance provider offering the MoHRE-backed policy.

• Avoid penalties by complying with the mandatory health insurance regulations.

• As much as providing health insurance Dubai and the UAE is a legal requirement, it also helps in reducing financial risks for businesses and improving the well-being of their employees eventually leading to a better workplace environment and productivity. 

How This Impacts the UAE’s Healthcare System

The implementation of this low-cost health insurance plan is part of the UAE’s broader strategy to strengthen its healthcare infrastructure and ensure accessible medical services for all residents.

Better Disease Prevention

Encouraging early diagnosis and treatment of chronic illnesses, ultimately reducing healthcare costs.

Lower Out-of-Pocket Healthcare Expenses

Workers will no longer need to rely on costly out-of-pocket medical payments.

More Efficient Healthcare

Encouraging routine check-ups instead of emergency-only medical visits.

Strengthened Healthcare Investment

A larger insured population could eventually allow hospitals and clinics to expand their services and facilities.

With this initiative, it is pretty evident that the UAE is taking another step toward global best practices in workforce welfare and public health security, strengthening its position among other countries.

How to Enroll in the New Health Insurance Plan?

Now that the scheme is officially in place, employers and sponsors can purchase the policy through multiple channels

DubaiCare Network

The primary service provider that helps in the insurance enrollments.

Accredited Insurance Providers

Employers can also choose from approved insurance companies via the MoHRE website, mobile apps, or business service centers.

For streamlined access, the MoHRE Smart Services platform provides a digital system for policy registration, premium payments, and renewals.

What’s Next for Health Insurance in the UAE?

With this new affordable health insurance plan, the UAE is now closer than ever to achieving universal healthcare coverage. While this initiative primarily focuses on guaranteeing basic healthcare access, it sets the stage for potential expansions, including more comprehensive benefits and specialized coverage in the future.

Employers and workers alike should stay informed about any future updates or policy enhancements. As health insurance Dubai and the UAE continues to evolve, the nation reaffirms its position as a leader in workforce protection, healthcare affordability, and economic inclusivity.