Details of Egypt’s proposed health insurance law have been released, showing that the comprehensive medical insurance scheme would be rolled out between next year and 2032.
The implementation of the scheme will take place gradually over six stages across Egypt:
- 2018-2020 in South Sinai, North Sinai, Ismailia, Port Said and Suez;
- 2021-2023 in Luxor, Matrouh and the Red Sea, Aswan, Qena;
- 2024-2026 in Alexandria, Damietta and Beheira and Kafr El Sheikh Sohag;
- 2027-2028 in Beni Suef, Assiut, Minya, New Valley and Fayoum;
- 2029-2030 in Dakahlia, Gharbia, Eastern and Menoufia; and
- 2031-2032 in Cairo.
The Minister of Health and Population, Dr Ahmed Emad Eldin Rady, said that the health insurance system will be compulsory for Egyptian citizens at home, who number 94 million. It will cost between EGP1,300 (US$73.70) and EGP4,000 per year, depending on income. The new scheme will include the entire members of the families and will be provided to all Egyptian citizens. Those citizens who cannot afford the premiums will be exempted from paying them. Participation is optional for Egyptians living abroad.
Contributions to the scheme will be based on an individual’s total income. It will also be binding on the head of the family to pay for his wife, if she does not work, and dependent children. Contribution rates will differ, according to the individual’s employment status (eg, pensioner, widows, etc).
A committee will be formed by the Ministry of Social Solidarity and the Ministry of Finance to assess the financial situation of those unable to subscribe to the scheme before deciding whether they could be exempted from contributing.
Employers will have to pay their share of the contributions of their employees, amounting to 4% of the total wage of the insured worker (3% sickness insurance + 1% work injury).
Apart from employers and employees, sources of funding for the scheme include external and internal grants and government loans, donations, cigarette and tobacco taxes, highway tolls, driving licence renewal fees, vehicle licence fees, etc.
The new system allows contracting with private hospitals, and police and army hospitals as long as they meet control and qualifications requirements.
Currently, Egypt has an insurance system that covers only about 60% of Egyptian citizens. However, only 6% of citizens use its services. M
EGP1 = US$0.06