Companies in the private sector will soon be required to provide health insurance for their employees, according to a statement issued by Oman’s Capital Market Authority (CMA). Currently only a small percentage of private sector employees are provided with health insurance
It did not give a specific date for implementation.
According to the statement, CMA is currently drafting plans to introduce mandatory health insurance for all residents in the country after the Council of Ministers made recommendations to do so.
“The decision aims at meeting the needs of the employees of the private sector relating to coverage of basic health, to limit the high cost employers of private sector will incur in view of the current economic situation in addition to providing quality services provided by the insurance companies and health care unit to the insured,” the CMA said in a statement.
The CMA described the decision as a milestone in achieving a unified health insurance policy for private sector employees and their families.
It hopes to roll out the implementation gradually as it is still being legally reviewed.
Only nine per cent of Omanis and 10 per cent of expatriates in the private sector are provided with health insurance.
This shocking statistic triggered authorities to have the issue studied and changes to be implemented.
“The aim of the health insurance plan is to raise the quality and efficiency of the private health sector, which must compete with the public health sector, and this cannot happen unless there is proper financing in the private health sector, which could come from health insurance,” Minister of Health, Ahmad Bin Mohammad Bin Obaid Al Saeedi, said last year.
Minister of Health, Mohammed bin Obaid Al Sa’eedi, said that CMA’s plans are in line with the announcement about compulsory health insurance that the government made in September 2017. Read more here: https://www.juaninoman.com/health-insurance-for-expats/
The statement read, “CMA set an executive work plan as milestones for implementation of the health insurance scheme, the key of which is preparing a draft unified health insurance policy for the employees of the private sector and their families, to ensure sound competition and to avoid any future irregularities by insurance companies to provide the customer with proper basic health coverage.”
“CMA reviewed the policy with the relevant entities, such as the Ministry of Health, Ministry of Manpower, Oman Chamber of Commerce and Industry, insurance companies, health service providers in Oman and Oman Medical Association,” added officials at CMA.
“The policy is currently under legal review at the CMA. The body [believes] that the best mode of implementation is gradual execution. The next phase will only be after they ensure the success of implementation of the previous phases,” officials added.
Reflecting on the impact the ruling will have on businesses, Latif Shahdad, General Manager of Mass International, told the Times of Oman, “These regulations have already been adopted by all excellent and A grade companies. However, those that have not done so will need to, since it is in the best interest of their personnel and operations.”
“Having medical insurance may cost them in the short term, but in the long term it will secure the health of employees and increase productivity, as a result.”
“For that reason, all companies should be on board with the government’s decision to implement this policy, as it is for the benefit of all, at the end of the day.”
