A new mandatory healthcare initiative is set to be introduced in Bahrain later this quarter, but is unlikely to have any direct impact on the international private medical insurance (IPMI) market there.
Bahrain is scheduled to soft-launch to the expatriate market a mandatory Health Insurance Law during the third quarter of 2023.
The Health Insurance Law was signed by Hamad bin Isa Al Khalifa, King of Bahrain and became effective on 1 January 2019.
The mandatory package for Bahrain citizens is funded by the state and covers medical treatment at government facilities.
But foreign residents are also covered under the mandatory package either directly or through insurance companies. Additional services can be purchased if desired.
There is also an optional package with a shared participation of 40% from the participant and 60% from the government, in addition to participant’s payment of bills for treatment at public and private healthcare facilities.
Although the soft-launch has not yet happened, Bahrain has restated its intention.
On 23 September 2023, Dr Waleed Khalifa Al-Manae, the Bahrain Health Ministry’s undersecretary, affirmed Bahrain’s keenness to provide comprehensive healthcare for all citizens and residents.
The Bahrain News Agency, which is a part of the Ministry of Information reported that Al-Manae pointed out that the kingdom had been keen to implement the Health Insurance Law, and multi-year health strategies.
Health & Protection reported last month that Bahrain had seen double-figure growth for its private medical insurance (PMI) industry over the previous six months, according to latest figures from the Central Bank of Bahrain (CBB).
After Jordan at 5.0%, Bahrain will have the next lowest rate of medical plan costs in the Middle East at 8.0%, followed by Qatar with a rate of 8.5% – according to an Aon report.
Blue-Collar
Adam Knights, CEO at Howden Insurance Brokers in Bahrain, said: “The mandatory healthcare initiative in Bahrain is an exciting project that aims to provide access to medical services for all expatriates, particularly those in blue-collar occupations.
“The initiative includes provisions for healthcare coverage at private hospitals and clinics.
“The soft launch of the expatriate scheme is planned for Q3 of 2023, with the goal of full operation by the end of 2024.
“We anticipate minimal to no impact on IPMI (International Private Medical Insurance) since these insurance plans target a different market segment.
“Howden Bahrain is well-prepared for any forthcoming changes, as we already have a dynamic and professional employee benefits team with extensive experience and knowledge of the Bahraini market.”
But even if it has minimal impact on IPMI, the system could still be a positive development for insurance companies and brokers.
Positive move
Amber Musson-Thorp, group head of commercial for Lifecare International, told Health & Protection that the move would be a positive one for the insurance industry.
“It will be positive for many reasons – one being the population health for residents of Bahrain but also making it the same as other markets in the Middle East that have taken the decision to implement the mandatory system.
“When the country and market of the insured population is small with many competing insurance companies trying to price for a risk in a very small insured market, you tend to find under pricing and poor performing business.
“It will take time but as the system becomes mandatory it will improve all of this,” she noted.
But there are other advantages as well, as mandatory insurance will begin to raise awareness.
“I’m sure there will be many lessons to be learned in the first few years, but ultimately this will increase the necessity for intermediary advice in the medium to long term and we look forward to the implementation of this in multiple territories in the region,” Musson-Thorp said.
The move could also create greater interest in the business, with many new entrants trying to tap into the market.
“We expect to see a flurry of non-specialists opening their eyes to the opportunities for the medical market, so it will be interesting to see how broker licenses are going to be managed,” she said.