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Health insurance firms must follow Saudisation process

28 August 2005

JEDDAH -- The Ministry of Health officials have rejected health insurance companies that have not applied the Saudisation process in their companies and would not be allowed to be part of the health insurance system, which began earlier this year.

There were 17 insurance companies and 182 health ministry hospitals and polyclinics that applied to be part of the health insurance campaign, according to Minister of Health Dr Hamad Al-Manie.

As per the by-laws of the plan issued by the Ministry of Health in June, all expatriates, including their families and dependents residing in the Kingdom, should be brought under the insurance umbrella in three phases. The insurance would cover most medical services excluding AIDS treatment, mental disorders except chronic cases, organ transplants, non-essential cosmetic surgery, and a number of non-essential services.

There will be no Iqama, resident permit,, for those who want to enter the Kingdom without health insurance, which would be required for renewal as well. The health insurance scheme would follow the interest-free Islamic system, according to an official at the council of cooperative health insurance. It would apply to companies with more than 500 expatriate workers within one year, those with more than 100 workers within two years, and the rest within three years.

According to government studies, the health insurance market in the Kingdom has grown by 25 per cent since it became mandatory for expatriates from June. It would reach up to $3 billion when it is applied to the expatriates before extending it to the Saudis.

Statistics released by the Ministry of Health show that 3.58 million expatriates are treated annually at government hospitals.

"Until now we agreed on nine insurance companies to establish the health insurance system," said Dr Khalid Marghalani, spokesman of the Ministry of Health. These companies have started from June 26.

According to Saudi Arabian Monetary Agency (SAMA), the council of cooperative health insurance agreed to name nine insurance companies to participate in the health insurance system.

"These companies have qualifications and productivity that gave them the priority to be part of the health insurance campaign," Marghalani said.

They were chosen because they are qualified by the Council of Cooperative Health Insurance (CCHI), licensed by the Ministry of Health and accredited by CCHI and they have the ability to meet their commitments according to the rules of the cooperative health insurance act and its executive bylaws.

The insurance companies are the Cooperative Insurance (NCCI), United Cooperative Assurance Company (UCA), BUPA Arabia (BUPA Middle East), Arabian Shield Insurance Company, The Mediterranean & Gulf Insurance & Reinsurance Company (MedGulf), Al-Alamiya Insurance Company (Royal & Sun Alliance Middle-East), Gulf Union Insurance Company, Saudi Arabian Insurance Company (SAICO) and Al-Sagr Company for Cooperative Insurance.

Al-Manie said that health insurance would be between SR1,200 -1,400 per worker. He added that those who work in private hospitals are not included in the health insurance since the hospital provides them with the medical treatment they need.

"Providing health insurance will decrease the number of diseases in the Kingdom," said Dr Ahmad Fuad of King Fahd Hospital in Jeddah. "Most expatriates that come here can't afford to pay for medication. This will help them a lot," he added.

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© Khaleej Times 2005