Saudi Arabia: Health cover for all private-sector employees by 2017

Saudi Arabia: Health cover for all private-sector employees by 2017

Source: MEIR eDaily | 06 Jun 2016
Saudi Arabia's planned new health insurance system will oblige all companies to provide insurance cover to their employees and families. The new system will also allow working men to enjoy health insurance irrespective of the number of wives and children they have.

Mr Faisal Al-Rakaf, Director of Customer Service at the Council of Cooperative Health Insurance (CCHI), told Saudi Gazette: "A company is, however, not responsible for providing health insurance to the employee's parents and siblings if they are under his guardianship. In this case, the employee shall pay the insurance fees."

The official was speaking during a seminar last week at the Jeddah Chamber of Commerce to introduce the new regulations which will be effective immediately.

All employees of the private sector, both Saudis and expatriates, are placed in a system provided by the Council to ensure that they are covered by health insurance. The Council will link its data with the General Organization for Social Insurance (GOSI). The link will be established before the end of this year.

Mr Al-Rakaf said it has been found that a large number of Saudis in the private sector have no health insurance and by linking the two government bodies, health insurance will be more organised.

"If a person gets married while working the company is obliged to provide his wife and children with health insurance," he added. "The system does not permit employers to allow for singles-only contracts. If the employee gets married, the company must provide insurance to the family. Any manipulation is considered a violation."

Working women

As for working women, Mr Al-Rakaf said they and their family members should be provided with health insurance under specific conditions. "Working Saudi women have the right to get health insurance for their husbands and children if they provide official documents proving their spouses are retired, unemployed or are working for the public sector."

Replying to a question, Mr Al-Rakaf said. "If the wife is enjoying in her work a better health insurance class, and her husband is working for another company at a lesser health insurance class, she cannot ask her employer to give her insurance to her kids and husband since they are already enjoying insurance from the husband's company."

The new system also obliges all companies to provide cover for pregnancy and delivery. "Previously there were some contracts that excluded almost every illness from the insurance. This will not be allowed anymore," said Mr Al-Rakaf.

The new health insurance system gives more rights to employees who are above 60 years old. "Previously, the system obliged companies to provide health insurance to employees until they reach the age of 60. The new system, however, does not specify any maximum age," said Mr Al-Rakaf said.

Phased implementation

The system will be implemented over four stages based on the number of employees in a company. The first stage will include companies that have more than 100 employees and the deadline to implement the scheme is next month. The second includes companies that have 50 to 99 employees and the deadline is October this year. The third stage will have companies that have 25 to 49 employees and that should meet the health insurance requirement by January 2017. The last stage will include companies that have fewer than 25 employees and this group should implement the scheme by April 2017.