Qatar has forged ahead with the rollout of its mandatory healthcare insurance scheme by issuing the long-awaited executive regulations, which form an integral part of the health insurance law that came into effect in May 2022, said Clyde & Co.
The executive regulations were published in the Official Gazette on 1 September 2022 and came into effect on 2 September 2022.
The much-anticipated mandatory healthcare scheme replaces an earlier scheme, SEHA, which was launched in 2013 and then withdrawn in 2015. The new scheme will apply to all expatriates and visitors to Qatar for the duration of their visit.
Significant changes
Calling the issuance of the executive regulations a significant step, Clyde & Co said the regulations stipulate that mandatory health insurance, including basic and additional cover, can only be provided by insurers licensed in compliance with Qatar law and registered with the Ministry of Public Health (MOPH). Fundamentally, this means that international health insurers can no longer provide cover for members in Qatar through licensed intermediaries in the Qatar Financial Centre or the State, as was previously the position.
Consequently, there is a strict prohibition in the law and the executive regulations on unlicensed insurance activities, thereby restricting the provision of insurance coverage to licensed entities in Qatar. This is a seismic change to the regulatory landscape in Qatar.
The executive regulations extend to and preclude insurance brokers and claims management companies from participating in the scheme unless they obtain the requisite authorisation to operate in Qatar and register with the MOPH.
The only exception to the strict prohibition is in relation to visitors to Qatar (persons who are not expatriates or residents) holding a global health insurance policy, that includes Qatar and covers basic healthcare comprising emergency and accident services, who will not be required to obtain cover from a Qatari registered insurer.
With health insurance mandatory to enter the country and the World Cup approaching fast, Qatari licensed insurers are well placed to capitalise on these changes. However, it remains to be seen if and how such entry requirements will be enforced.
Action required
Insurance sector employers and sponsors should closely examine and acquaint themselves with the obligations imposed on them in the new mandatory healthcare scheme. Steps should be taken to implement measures to comply with the law and the executive regulations as and when required, said Clyde & Co.
Insurance policies issued by unlicensed international insurers will remain in effect until expiry. Those policies should be closely monitored. Likewise, employers should be reviewing their health benefit plans and contracts to determine what necessary updates are required to align with the executive regulations. M