RIYADH, 12 February 2007 — Pointing out that the number of people presently covered by mandatory health insurance schemes stands at over 1.13 million, Health Minister Dr. Hamad Al-Manie said he expects the number to significantly increase following an awareness campaign that is soon to be launched.
Dr. Al-Manie, chairman of the Council of Cooperative Health Insurance (CCHI), was speaking after signing a SR12 million contract yesterday with Khalil Minawi, the managing director of Impact BBDO, an advertising agency.
Giving a breakdown of the number of beneficiaries with health insurance cover, the minister said that of the total number of 1,135,881 people insured so far, the number of non-Saudis insured stood at 970,169 and that of Saudis 165,712.
The medical insurance coverage would be completed in stages, with the first phase (now in progress) involving 33 companies with a manpower of 500 employees and above. The second phase would involve companies that have a work force of non-Saudi employees ranging from 100 to 500 and the third phase would cover those with a work force of less than 100 expatriates. All non-Saudis would be included in the scheme, regardless of whether they are employed in the private or non-private sectors.
Dr. Al-Manie said the insurance sector would get a boost with 13 companies already licensed to carry out their activities in the Kingdom. These companies would help provide 10,000 job opportunities for Saudi youth in coming years.
According to an earlier statement issued by Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency (SAMA), all entrants into the insurance scheme would be required to set up training programs in order to absorb Saudi nationals into the employment market. They would inject SR2.6 billion into the market, of which SR936 million would be channeled into initial public offerings (IPOs).
Under the agreement, the public awareness campaign would be launched through the print and electronic media. Publicity material would also be produced in Arabic, English and other languages spoken by expatriates.
Meanwhile, CCHI has directed companies to provide health insurance cover to their employees. They are also required to furnish details of health insurance policies and iqama numbers of beneficiaries and their dependents to the insurance companies. Therefore, the Heath Ministry, in collaboration with the Passport Department, has linked iqamas electronically with the health insurance cover. The scheme applies to all expatriates.
The agreement reflects the government’s keenness to extend the reach of medical insurance coverage among expatriates. The insurance market has picked up momentum with many hospitals and polyclinics either being set up or expanding their existing capacity.
A major polyclinic chain from India is also set to establish a network of polyclinics in Riyadh and elsewhere. A move that is said to trigger stiff competition. The beneficiary eventually will be the insured patient.
Two years later, Saudis would also come within the purview of the health insurance scheme when 16 million citizens will be covered under a phased program. The CCHI has signed contracts with 26 hospitals and medical centers in Riyadh, Dhahran, Alkhobar, Jubail, Khamis Mushayt, Taif, Jeddah, Tabuk and other places.
The coverage includes outpatient and inpatient health services, as well as delivery and dental care. The agreement is seen as a good beginning for medical cooperative insurance schemes as it will encourage other companies to follow suit.
