DOHA: Private companies say the health insurance law that makes it mandatory to provide medical cover to their foreign employees and their families will raise their salary overheads by at least 20 percent.
This additional financial burden is sure to be passed on by the profit-oriented private sector to consumers, which would in effect lead to inflationary pressures.
The law is to be implemented in phases over the next two to three years beginning with Qatari women hopefully soon and covering the women’s hospital.
Although the legislation prevents companies from making deductions from workers’ salaries to recover the insurance premiums, the sector insists they would come up with ways to “make adjustments in employees’ pay packages” to ensure that companies don’t pay the premiums from their pockets.
“The law is sure to lead to general price rise because companies’ salary overheads will go up,” prominent businessman, Ahmed Al Khalaf, told this newspaper late on Monday.
“That’s why it is essential that the executive regulations (or by-laws to be framed by the health minister later) stipulate what percentage of insurance premium a company should pay per employee,” Al Khalaf said.
As for low-income workers who are in a vast majority and whose salaries are not high, it is important that the government chips in, he added.
As it is, these workers have been entirely dependent on state-run health services as most have access to a QR100 health card.
On a positive note, though, Al Khalaf said the fact that private sector workers will have free access to medical cover, their health condition will improve, leading to more productivity.
Businessmen see the insurance sector as well as investment in the health sector witnessing a boom due to the law.
“The private sector has a massive opportunity here to invest in healthcare facilities,” said Abdul Rahman Al Muftah, prominent businessman and member of the Advisory Council.
In the end, as competition in the health sector rises and quality improves considerably, it is the people who would benefit, he added. The Peninsula
