More employers are offering ancillary benefit plans, including hospital indemnity coverage, as a way to add financial certainty for employees, especially with more than 80 percent of employers now offering consumer-directed health plans.
Speaking at the launch of the programme, Tariq Al Gurg, chief executive officer of Dubai Cares, said: "We believe, through this programme, that we can significantly affect the country's educational environment while also providing an ancillary benefit by contributing to the local economy.
In turn, this has the ancillary benefit of making it simpler for future corporate debt obligations to be addressed through court-based restructurings, rather than through a sovereign bail-out, reducing the pressure on Dubai to continue offering financial support to corporate entities, and on Abu Dhabi to accede to further financial pressures in the neighbouring emirate".
One significant ancillary benefit of the proposed regulations, he said, is that taxpayers have been compelled to reexamine their transfers of intellectual property and have come forward to the Treasury Department to discuss how their CSAs are affected by the new rules.
The employer is able to continue to provide a basic medical program, and the employee is not forced to help subsidize all the ancillary benefit areas--formerly part of a comprehensive benefit package--in order to get the medical coverage they want most.