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Apr 06 2011

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Kuwait: KHAC to charge KD130 for health plan insurance

KUWAIT: Kuwait's healthcare system will witness big improvements with the introduction of a new health insurance policy, said Mohammad Al-Munifi, the chairman of the Kuwait Health Assurance Company (KHAC), at a press conference held at the Safir Hotel yesterday for potential investors.

Also speaking at the event were Abdullah Al-Khrafi from the International Counsel Bureau, and Ahmad Nossouli from the Advisory Group. A Ministerial resolution was issued in 2010 to establish the KHAC and conduct a public auction to sell a 26 percent ownership share to a strategic partner. This comes as part of the cabinet's proposed development plan, and is expected to solve many of the loopholes in the current healthcare system.

The company aims to improve the quality of the health care system in Kuwait by establishing three major hospitals and 15 polyclinics within the next three years, explained Al-Munifi. "We have a vision for synergy and cooperation between the private and government sectors. By letting the private sector manage such a project, we expect an efficient health care system in Kuwait and a better experience for patients," he stated.

The Kuwaiti government currently spends millions of dinars on healthcare for non-nationals, said Al-Munifi, adding, "We don't expect the government to continue spending money on healthcare for non-nationals, even for nationals - there are many indicators that suggest the government won't be giving free healthcare and education.

Health insurance obtained from the KHAC will cost no more than KD 130 per person, he stressed. After the establishment of the KHAC, the Ministry of Health (MoH) will stop issuing health insurance plan certificates to expatriates. "In order to stamp their visas, expatriates in Kuwait must obtain insurance from the KHAC," Al-Munifi explained. "We believe that the maximum fee of KD 130 is very reasonable, considering the quality of healthcare the KHAC will provide.

The KHAC head also noted that this will necessitate the introduction of amendments to sponsorship laws, obliging sponsors to pay staff members' healthcare insurance fees and guarantee that sponsors do not deduct fees from the employees. "The fact that we have employees with low wages that reach KD 30 is a disaster - the cabinet has promised to look into that," he added.

The healthcare system provided by the KHAC, however, will be premium-rate, the executive claimed, stressing that the new company is not only providing access to healthcare for expatriates but for Kuwaitis as well. "We plan to target Kuwaitis, too," he said, continuing, "Many nationals prefer to go to private clinics instead of public clinics because of the poor quality of service at public clinics. We want to give affordable premium healthcare services to all residents of Kuwait whether nationals or non-n
ationals alike.

Current legislation obliges expatriates to obtain insurance from any 'healthcare system provider', which the law defines as a healthcare company providing over 900 beds available across Kuwait's six governorates. "As things stand today, there are no such healthcare providing companies," said Ahmad Nossouli of the Advisory Group. "We have private hospitals and clinics, but they don't meet the minimum requirements of having 900 beds across Kuwait.

If such companies are established by the time the KHAC launches its facilities, which is when the Ministry of Health will stop issuing its health insurance plans, the individuals have the right to choose between KHAC or any other such health provider who meets the minimum requirements of 900 beds. As it stands today, no such company exists.