Middle East - UAE: Health insurance wastage cost US$1 bln yearly
Source: Middle East Insurance Review | Jun 2016
Abuse and unnecessary use of health insurance services in the local market cost approximately US$1 billion annually, according to the Emirates Insurance Association (EIA).
The insurers’ body said that it is very important to continue searching for mechanisms in collaboration with the regulatory authorities, to cut abuse of medical insurance services, reported Emirates Today.
Dr Amin Hussein Al Amiri, Assistant Undersecretary for Public Health and Licensing in the Ministry of Health, said that spending on healthcare increased by 8%, over the past year, reaching AED53.8 billion (US$14.7 billion). The figure is expected to rise to AED70.6 billion in 2019, representing compound annual growth of 7.9%.
Dr Al Amiri said that the UAE health insurance industry faces a number of challenges. It is estimated that between 10% and 30% of health insurance premiums go to non-essential medical services. He added that if this is not brought under control, health premiums could become unaffordable for many people.
AED1 = US$0.27