KUWAIT CITY, Jan 26: In a significant move to preserve public funds and rationalize government spending, the Kuwaiti Cabinet has instructed 11 government entities to stop renewing or offering new health insurance contracts for their employees. This decision, based on legal provisions, aims to streamline healthcare spending while ensuring adherence to the nation’s fiscal policies.

The directive targets several prominent government bodies, including the Audit Bureau, the General Secretariat of the National Assembly, the Central Bank of Kuwait, the Competition Protection Agency, the Capital Markets Authority, the Communications and Information Technology Regulatory Authority, the Public Institution for Social Security, the Kuwait Ports Authority, the Kuwait Fund for Arab Economic Development, the Kuwait News Agency (KUNA), and the Insurance Regulatory Unit.

The Ministry of Finance revealed that several entities have independently offered health insurance benefits to their employees, often expanding these benefits to include life insurance and coverage for employees' families. The Ministry noted that these expenses have escalated to an unacceptable level, particularly given that healthcare services are already available through the Ministry of Health.

The Ministry also highlighted duplication in healthcare provisions, such as the Kuwait Petroleum Corporation and its subsidiaries offering health insurance despite having Al-Ahmadi Hospital dedicated to providing healthcare services for their employees. This duplication, according to the Ministry, has encouraged other government agencies to adopt similar practices, contributing to the unsustainable rise in healthcare costs.

The Cabinet’s directive is part of broader efforts to rationalize public spending, as outlined in Cabinet Resolutions No. 51 of 2014 and No. 728 of 2020. These resolutions emphasize controlling expenditures, diversifying revenue sources, and addressing fiscal imbalances.

To implement the new measures, the Cabinet has requested the affected entities to submit any cases requiring exemption to the Ministry of Finance, citing the legal basis and nature of their work. The Ministry of Finance will evaluate these cases and present its recommendations to the Cabinet.

The Ministry of Health has confirmed its readiness to accommodate employees from the affected entities. Healthcare services will be provided through the Ministry's facilities, following existing regulations and systems. The Ministry assured that this transition would not compromise the quality of care provided to employees.

Furthermore, the Ministry of Finance has called for amendments to the Kuwait Petroleum Corporation's insurance policies and urged the company to utilize the Ministry of Health’s facilities alongside Al-Ahmadi Hospital to meet employees' healthcare needs.

The Cabinet’s decision underscores the government’s commitment to financial efficiency while maintaining essential services. However, the Ministry of Finance noted that it is still awaiting feedback from the Civil Service Bureau and the Fatwa and Legislation Department regarding the implementation of these measures.

This decision is expected to set a precedent for other government entities to optimize their spending and reduce redundancies, contributing to Kuwait’s broader economic reform agenda.