Kuwait Petroleum Corporation chops health benefits to curb financial expenses

18/10/2025

Kuwait Petroleum Corporation chops health benefits to curb financial expenses

KUWAIT CITY, Oct 18: As part of its spending rationalization strategy, Kuwait Petroleum Corporation (KPC) has approved a series of amendments to the health services provided to its employees, introducing alternatives aimed at curbing excessive spending and promoting financial efficiency. According to the decision, KPC approved the implementation of several proposed initiatives to reduce healthcare costs and expenses related to the group health insurance policy for KPC employees and its subsidiaries.

One of the main changes includes the cancellation of the maternity and childbirth benefit, previously capped at an annual maximum of KD 1,500 per person, from the group health insurance policy. Among the main initiatives proposed in the decision is the provision of maternity and related services to beneficiaries through Ahmadi Hospital or health facilities affiliated with the Ministry of Health. The plan includes increasing the availability of appointments at the maternity clinic in Ahmadi Hospital.

Furthermore, the payment and reimbursement system under the group health insurance policy has been suspended. Instead, beneficiaries will receive treatment at Ahmadi Hospital or Ministry of Health facilities in cases where insurance coverage limits are exceeded, medical conditions are excluded from insurance coverage, or treatment is sought at medical centers outside the network of health service providers. Other important changes include the removal of parental treatment at Ahmadi Hospital from new employment contracts, as well as the removal of healthcare coverage for retirees’ families at the same hospital.

These policy amendments will take effect on April 1, 2026. The policy also includes approval to extend the group health insurance system for a new three-year term, starting April 1, 2026, and ending March 31, 2029. The possibility of further extension will be reviewed at a later stage. Kuwait Oil Company has been tasked with taking all necessary steps to implement the provisions of Clause 3 of this decision, including initiating the process of securing the best offers and prices from local insurance companies. This will be carried out in accordance with the insurance policy system of Kuwait Petroleum Corporation and its subsidiaries.

By Najeh Bilal Al-Seyassah/Arab Times Staff