Insurance expert highlights impact of medical wage hike

The publication of the new medical wage list in the official gazette announced a gradual 20% annual increase over three years, totaling a 60% rise by 2026. Insurance expert Musa Al-Sobhi warned that this increase comes at a time of economic instability for individuals and companies, exacerbating the struggles of Jordanian families.

Al-Sobhi summarized the implications of the new medical wage regulations as follows:

The insurance companies providing services to employees and retirees may reduce health insurance benefits and limit medical visits, especially to specialized clinics, to keep costs within budget without adding financial burdens. This could negatively impact doctors, employees, and their families.

Non-insured individuals might avoid private clinics, seeking advice from pharmacists instead, which could lower healthcare quality and increase pressure on clinics. Medium-sized companies may drop health insurance entirely if financially strained, worsening conditions for many workers.

Insurance companies might raise policy costs, leading to some policyholders not renewing, negatively affecting companies and clinic doctors. Increased pressure on government health insurance could degrade treatment services and raise operational costs, impacting the public health system and citizen welfare.

Raising medical wages will increase the costs of treating work-related injuries, putting pressure on the Social Security Corporation, which covers these costs. This will also contribute to inflation by raising overall labor costs, affecting life aspects and increasing poverty rates.

Higher medical wages might reduce spending on other goods and services, adversely affecting other sectors. Workers in small professional, craft, and commercial sectors, especially those without health insurance, will face higher healthcare costs and may avoid medical visits, harming their health and productivity.

Given these concerns, Al-Sobhi urged the government to develop a comprehensive, fair, and sustainable health insurance project in collaboration with the Social Security Corporation to cover retirees and those without health insurance.