RIYADH, 23 June 2006 — The Health Ministry has announced that the new cooperative health insurance scheme covering all expatriates living in the Kingdom will be effective from July 15.
Addressing a meeting of directors of private hospitals in Riyadh on Wednesday, Health Minister Hamad Al-Manie said that the scheme will generate an estimated annual revenue of SR10 billion from expatriates, Al-Jazirah newspaper reported yesterday.
Dr. Al-Manie added that the scheme will operate in conjunction with expatriate residential permits and that permits will only be issued to foreigners after they provide proof that they have medical insurance.
The scheme is also set to be applied to Saudi citizens at a later date and will generate a total of SR30 billion when applied.
Describing the move as a turning point in the Kingdom’s health sector, Dr. Al-Manie said that the new regulation means greater challenges for both government and private hospitals in dealing with the sheer volume of expatriates who would potentially use medical services.
Dr. Al- Manie said, “Every hospital has to gear up for the task because the Kingdom has an expatriate population of 7 million making it the largest health insurance market in the region.
“The new system will be extended to all non-Saudis in a gradual manner and will apply when foreigners renew their residency permits. The ministry aims to complete the task by the end of the year,” Dr. Al-Manie added.
While calling on private hospitals to be prepared for the task, the health minister also said, “State hospitals will not be in competition with the private sector as the real competition is to offer quality service to patients. The private sector is now a partner in this.”
While addressing the meeting the minister also called on the private health sector to extend their insurance services to the country’s remote and interior regions where there are hardly any hospitals.
The meeting was attended by high-ranking officials from the Health Ministry and cooperative insurance organizations.
