UAE UNVEILS NEW HEALTH INSURANCE SCHEME

According to the United Arab Emirates (UAE) health ministry, a long-awaited national health insurance scheme -- covering both nationals and expatriates -- will be implemented by the end of the year. The scheme was first announced in 2002, and will introduce mandatory health insurance for employees.

It is hoped that the plan will ensure the availability of affordable drugs and reduce the pressure on public health services. Negotiations are currently under way between the Ministry of Health, Ministry of Finance and other related bodies concerning the details of the project.

The UAE has been keen to reduce both drug prices and healthcare spending, placing the financial burden increasingly on employers and drug firms. This has included a further cut in profit margins on pharmaceuticals, to 45%. The measure is expected to reduce average selling prices by around 7%, although a number of local manufacturers and retailers have been reluctant to comply with the cut.