Insurers reject increase in UAE health care fees

Patients will have to pay If insurance firms refuse to meet rise

Dubai: Eight major hospitals and 17 medical centres in the UAE have proposed to increase fees by up to 45 per cent in the new year, insurance companies said in a meeting on Sunday.

The increase is a sudden and "unjustified" jump which will have to be borne by the insurance companies until insurance policies expire.

Those not insured will have to bear the increase in medical charges.

"Although it [the fees] was increased in the past six years, especially in 2007 and 2008, there is no reason to hike it further, since there is no increase in operational costs," said the insurers' committee.

The group of insurance companies decided at the meeting that they would reject the increases.

They also said that they "can't tolerate this unjustified increase as it will reflect negatively on the public [beneficiaries]", as the increase will essentially be passed on.

Meanwhile, hospitals said that the rise is an average annual increase.

Inflation

"We are increasing our prices by about 7 per cent. This is in line with medical inflation in the region [to] sustain the delivery of medical care," said Mustafa Kantawala, general manager of the finance department at Welcare Hospital and City Hospital (Group).

He said that the increase would affect all patients, but the majority of its customers, about 65 per cent, are insured.

The hospital had submitted the proposal almost three months ago, he said, and is now waiting for the insurance companies to agree.

"If they don't agree, it will be very traumatic for our patients. They would have to pay and get reimbursed later," he said.

While the insurance companies said that they would reject the increase, they also said that they would approach federal and local health authorities to monitor health care charges.

Consumer protection

The issue would also be forwarded to the consumer protection society at the Ministry of Economy.

Zulekha Hospital — proposing the highest increase at 44 per cent, according to its insurance companies — refused to comment. Al Zahra Hospital said that the matter is confidential and also refused to comment.

Other hospitals include International Modern Hospital, American Hospital, Al Raffah Hospital, Al Noor Hospital and Al Salama Hospital.

Negative impact

Insurance companies said they could not include the increase in the current policies and would have to wait for them to expire, which could take up to a year.

"When the policies were issued, the increase was not taken into consideration, which will affect the public negatively," insurance company representatives said