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Oman: Mandatory health insurance for private sector by 2018

Source: Middle East Insurance Review | Dec 2016

Health insurance cover will be made compulsory for all private-sector workers in Oman by 2018, the Oman Chamber of Commerce and Industry (OCCI) has told employers.
 
   In a notice issued recently, the OCCI urged firms to adhere to the proposed mandatory scheme and provide health insurance coverage for all workers, reported the Times of Oman. “Business should be informed about this and consider it when studying their future projects,” the OCCI notice stated.
 
   The plan is expected to be implemented over several phases and the Chamber hopes it can be rolled out by early 2018. The first phase will involve consultation with companies that have more than 100 employees to ensure cover for all staff. This phase is expected to start in early 2018, according to the OCCI.
 
   Under the plan, the second phase will include companies which have between 50 and 100 employees.
 
   Mr Ahmed Al Hooti, an OCCI member, noted that big companies are already providing medical insurance to their employees. However, some small companies are skipping health insurance coverage for their workforce.
 
   “Well-known big private companies in Oman make sure they provide their employees with health insurance but some are not committed to it, so we need to instruct them to do so. It is an ethical move,” he said.
 
   He added that during the current tough economic times, some companies have pulled out of providing some employee benefits like health insurance, reduced salaries or retrenched workers.
 
   Recently, some insurers and medical centres have confirmed that several private-sector companies are excluding chronic and common medical conditions from health insurance plans due to belt-tightening measures.
 
   According to government data, there were 215,109 Omanis working in the private sector while the number of expatriates in the sector was 1,764,059 at the end of September 2016.
 
   Mandatory health insurance will be included in the Sultanate’s new labour law which is expected to take effect soon.
 
   The Omani Ministry of Health has set up a committee to work out the best way to implement compulsory health insurance. Instead of a state scheme, the preferred mode is for health insurers to offer a range of packages.
 
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