Deductible

Where deductibles appear in the UAE

Deductibles are less common on UAE group medical than co-pays, and more common on individual, expatriate and international plans. Where a UAE plan carries one, it is usually stated per condition or per policy year in the table of benefits rather than on the rate chart.

The arithmetic

With a deductible of AED 1,000 and a first claim of AED 1,600, the member pays AED 1,000 and the insurer pays AED 600. The next claim in the same policy year is paid in full, subject to whatever co-pay and limits apply. With a 20% co-pay and no deductible, the same AED 1,600 claim costs the member AED 320, and so does the one after it, and the one after that.

Why the distinction changes the sale

A deductible front-loads the member's cost and then stops. A co-pay spreads it across the whole year and never stops. For a client with one predictable large expense, a deductible is cheaper. For a client with a chronic condition and a dozen visits a year, a co-pay is far more expensive than its headline percentage suggests.