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Sharjah can sustain independent health insurance system

Dr Ajit Nagpal, former adviser to the UAE Ministry of Health and member of an inter-ministerial committee on health insurance said, “Though it is desirable to have a unified system, the emirate of Sharjah can offer an independent health system because of the huge size of the risk pool available.”

Compulsory health insurance for expats and their dependants has already been introduced in Abu Dhabi, while Dubai has established a steering committee and is likely to introduce compulsory insurance this year. Other emirates are expected to follow suit gradually.

Dr Nagpal said that the more the people are insured, the bigger the size of the risk pool. “The remaining emirates are considerably smaller in population size, but Sharjah is different. If claims go beyond premium in Sharjah, the subsidies can come from the federal or Sharjah government reserves,” he added.

Pointing out setbacks of having mandatory insurance schemes, Dr Nagpal said that demand for healthcare would increase while the private sector could also be burdened in terms of numbers and services.

“To meet the increase, there has to be a proper infrastructure, technical support and resources available. In the case of the UAE, it may take a while to catch up,” he explained.

Dr Nagpal suggested that the government could offer a financial incentive to support hospitals as well as participate in the form of grants and subsidies.

• UAE