Effect of Saudi's updated health insurance policy: 4-Year comparative study pre and post implementation

Abstract

This study examines the impact of Saudi Arabia's updated Unified Health Insurance Policy, implemented in 2018, over a 4-year period. The objective is to assess its effects on key indicators in the health insurance sector, including gross written premiums (GWPs), insurance penetration, gross claims paid by health insurance, and insurance density. Quantitative data from official sources, including the Saudi Central Bank and the Council of Health Insurance (CHI), were analyzed. A two-sample t-test was employed to compare pre implementation (2014–2017) and post implementation (2019–2022) periods for selected indicators. The study found a significant increase in GWPs, suggesting heightened revenue generation for insurers, likely due to increased demand, adjusted pricing strategies, and expanded coverage. Insurance penetration notably widened, indicating improved accessibility, driven by awareness campaigns and subsidies. Gross claims paid by health insurance increased significantly, showing insurers disbursing more funds to cover healthcare costs. However, there was no significant impact on insurance density, highlighting the need for additional strategies to extend coverage. Saudi Arabia's updated Unified Health Insurance Policy has yielded transformative effects, enhancing accessibility and affordability. It has increased revenue generation, improved insurance penetration, and raised the amount paid by insurers to cover healthcare costs. The policy's impact on insurance density is limited, necessitating further efforts to extend coverage. These findings have significant policy implications, urging policymakers to refine healthcare policies and insurers to adapt to new revenue prospects, promising better overall health outcomes for the population. Further comprehensive research is essential to validate these conclusions and explore broader policy impacts.