KUWAIT CITY, Oct 5: The Official Kuwait Government Gazette “Kuwait Alyoum” published a decree officially canceling the health insurance law for retired citizens, known as the “Afia” system.

The decree’s explanatory memorandum highlighted that the State of Kuwait has always prioritized providing healthcare to its citizens, with a particular focus on retirees, who are considered the most in need of medical coverage. In line with this objective, Law No. 114 of 2014 was initially issued to expand private sector participation in providing health services to retirees. Subsequent amendments, including Law No. 71 of 2023, extended insurance coverage to additional groups for the same purpose.

However, the memorandum noted that the practical implementation of Law No. 114 of 2014 revealed significant challenges. Only a limited number of insurance companies were qualified to provide the required services, resulting in inadequate health coverage for retirees. The law also contributed to the monopolization of the health insurance market, resulting in services that did not reflect the public funds spent. To address these issues, Decree-Law No. 105 of 2024 was issued to suspend the implementation of Law No. 114 of 2014 for one year, starting from June 10, 2024, to allow time to explore alternative solutions that could balance public expenditure, state interest, and the needs of retirees.

The memorandum further explained that during the one-year suspension, the state successfully provided comprehensive healthcare to all citizens, including retirees, through its own healthcare institutions. The experience demonstrated that the state could fulfill its constitutional role, as stipulated in Articles 11 and 15 of the Kuwaiti Constitution, without relying on private insurers. Additionally, the suspension period revealed several shortcomings in the Afia system, including limited competition among private providers, high costs to public funds, and duplication of services, which placed an unnecessary burden on the state budget.

In light of these findings, it was deemed necessary to cancel Law No. 114 of 2014. Following the issuance of the Amiri Order on October 5, 2024, and in accordance with Article 4, a draft decree-law was prepared. Article One of the decree officially cancels the Afia Health Insurance Law, while Article Two mandates the relevant ministers to implement the law, effective from the date of its publication in the Official Gazette.

This decision marks a return to state-managed health care for retirees, ensuring that medical services are delivered efficiently while maintaining control over public spending.