The Kuwaiti government has officially repealed the health insurance law for retirees, more than a year after it was suspended. The decree abolishing the health insurance scheme, called ‘Afia’, was published in the official gazette in October.
The Health Ministry previously stated that the total number of retirees benefiting from Afia was around 200,000, with insurance coverage for each beneficiary amounting to KWD15,500 ($50,656).
The ministry explained the termination of the Afia system as follows:
Law No 114 of 2014 was enacted to expand private sector participation in offering health services to retirees. Subsequent amendments to the law extended insurance coverage to other groups.
However, the implementation of the 2014 Law revealed significant challenges. A limited number of insurance companies were qualified to provide the required services, resulting in inadequate health coverage for retirees. The law also contributed to the monopolisation of the health insurance market, resulting in services not commensurate with the public funds spent.
To address these issues, Decree Law No 105 of 2024 was issued to suspend the implementation of Law No 114 for one year, starting from 10 June 2024, to allow time to explore alternative solutions that could balance public expenditure, state interests and the needs of retirees.
During the one-year suspension, the state successfully provided comprehensive healthcare to all citizens, including retirees, through its own healthcare institutions. This demonstrated that the state could provide the full required healthcare through its health institutions, without relying on private insurers.
Additionally, the suspension period revealed the high costs and duplicated services of Afia, which placed an unnecessary burden on the state budget. M