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Executive Regulations for the Law o

Executive Regulations for the Law on Farmers’ Medical Insurance Are Issued
The Prime Minister issued decree No. 98 of 2015[1] enacting the Executive Regulations for Law No. 127 of 2014 on the Medical Insurance for Farmers and Agricultural Workers. It is worth noting that the Law on Medical Insurance for Farmers and Agricultural Workers (the "Law") was issued in September of last year at the occasion of the National Farmers’ Day (and it was subject to elaborate review in Egypt Legal Update’s October 2014 issue). The Law provides that the State shall provide farmers and agricultural workers with medical insurance in case they do not benefit from medical insurance under any other law. The Law also sets out the means of financing such medical insurance by providing that farmers and agricultural workers shall contribute a maximum of EGP 120 annually per person and the Government shall contribute an amount of EGP 200 for each subscriber in addition to 2% of the fees collected by the Ministry of Agriculture for the services offered to farmers. The Law stipulates that the treasury shall finance the deficit of the medical insurance in case its obligations exceed its revenues. The Law was promulgated in application of the constitutional principle set out in Article 18 of the Egyptian Constitution obliging the State to set up a comprehensive medical insurance system for all Egyptians. Although the Law provides that the Prime Minister shall issue the executive regulations within thirty days of the date of issuance of the Law, i.e. on 18 October 2014, yet in fact the executive regulations were not issued until 27 April 2015 with a delay of more than six months. However, the timeframe set for the issuance of the executive regulations is an organizational timeframe, the violation of which does not result in the nullity of the regulations or any other legal consequence. Most of the provisions of the executive regulations are organizational in nature since they regulate the mechanics and procedures of registration for the subscription to this medical insurance, however, there are three provisions worth discussing in detail.
  1. In relation to the definition of the terms “farmer” and “agricultural worker” the law had defined a farmer as being “every person who carries out farming activities as his profession and for whom agriculture is the main source of income.” The executive regulations repeated the same definition for “agricultural workers” too, which constitutes a flaw in the new insurance system because large numbers of agricultural workers may not be in a position to prove that agriculture is their profession and main source of income, especially that this sector is not officially regulated and accordingly those workers will remain uncovered by this medical insurance system. This is also aggravated by the fact that the executive regulations did not set out any criteria or guarantees for the registration of the covered persons, but rather delegates this function to a committee formed in every governorate pursuant to a decree to be issued by the Chairman of the Medical Insurance Authority.
  1. The Law has set out the financing means for this medical insurance system (a maximum of EGP 120 annually per farmer/agricultural worker, EGP 200 payable by the Government for each subscriber in addition to 2% of the fees collected by the Ministry of Agriculture for the services offered to farmers). However, the executive regulations added a new, ambiguous and unfounded, source for financing the medical insurance, being “30% of the price of medication distributed for non-chronic diseases.” Unfortunately this provision is ambiguous because it does not determine the authority responsible for this source of finance, how it is computed and its collection mechanism. And hence, it leaves room for ambiguity in interpreting the law in this respect, in addition to the fact that it exceeds the provisions of the law.
  1. Although the law determines the sources of financing this medical insurance system, Article 10 of the executive regulations provides that the Prime Minister may modify the value of the contributions according to the financial statements of the insurance system. This is a major legal flaw because it is not permissible for the Prime Minister to issue a decree amending a legal provision issued by a higher ranking legislative authority.
To conclude, this medical insurance system is very important and affects the lives of millions of farmers, there is clearly a need to review its source of funding.   [1] Prime Minister’s Decree No. 981/2015 enacting the Executive Regulations for Law No. 127 of 2014 on the Medical Insurance for Farmers and Agricultural Workers, Official Gazette, Issue No. 17 (cont.) (a), 27 April 2015.
The Prime Minister issued decree No. 98 of 2015[1] enacting the Executive Regulations for Law No. 127 of 2014 on the Medical Insurance for Farmers and Agricultural Workers. It is worth noting that the Law on Medical Insurance for Farmers and Agricultural Workers (the "Law") was issued in September of last year at the occasion of the National Farmers’ Day (and it was subject to elaborate review in Egypt Legal Update’s October 2014 issue). The Law provides that the State shall provide farmers and agricultural workers with medical insurance in case they do not benefit from medical insurance under any other law. The Law also sets out the means of financing such medical insurance by providing that farmers and agricultural workers shall contribute a maximum of EGP 120 annually per person and the Government shall contribute an amount of EGP 200 for each subscriber in addition to 2% of the fees collected by the Ministry of Agriculture for the services offered to farmers. The Law stipulates that the treasury shall finance the deficit of the medical insurance in case its obligations exceed its revenues. The Law was promulgated in application of the constitutional principle set out in Article 18 of the Egyptian Constitution obliging the State to set up a comprehensive medical insurance system for all Egyptians. Although the Law provides that the Prime Minister shall issue the executive regulations within thirty days of the date of issuance of the Law, i.e. on 18 October 2014, yet in fact the executive regulations were not issued until 27 April 2015 with a delay of more than six months. However, the timeframe set for the issuance of the executive regulations is an organizational timeframe, the violation of which does not result in the nullity of the regulations or any other legal consequence. Most of the provisions of the executive regulations are organizational in nature since they regulate the mechanics and procedures of registration for the subscription to this medical insurance, however, there are three provisions worth discussing in detail.
  1. In relation to the definition of the terms “farmer” and “agricultural worker” the law had defined a farmer as being “every person who carries out farming activities as his profession and for whom agriculture is the main source of income.” The executive regulations repeated the same definition for “agricultural workers” too, which constitutes a flaw in the new insurance system because large numbers of agricultural workers may not be in a position to prove that agriculture is their profession and main source of income, especially that this sector is not officially regulated and accordingly those workers will remain uncovered by this medical insurance system. This is also aggravated by the fact that the executive regulations did not set out any criteria or guarantees for the registration of the covered persons, but rather delegates this function to a committee formed in every governorate pursuant to a decree to be issued by the Chairman of the Medical Insurance Authority.
  1. The Law has set out the financing means for this medical insurance system (a maximum of EGP 120 annually per farmer/agricultural worker, EGP 200 payable by the Government for each subscriber in addition to 2% of the fees collected by the Ministry of Agriculture for the services offered to farmers). However, the executive regulations added a new, ambiguous and unfounded, source for financing the medical insurance, being “30% of the price of medication distributed for non-chronic diseases.” Unfortunately this provision is ambiguous because it does not determine the authority responsible for this source of finance, how it is computed and its collection mechanism. And hence, it leaves room for ambiguity in interpreting the law in this respect, in addition to the fact that it exceeds the provisions of the law.
  1. Although the law determines the sources of financing this medical insurance system, Article 10 of the executive regulations provides that the Prime Minister may modify the value of the contributions according to the financial statements of the insurance system. This is a major legal flaw because it is not permissible for the Prime Minister to issue a decree amending a legal provision issued by a higher ranking legislative authority.
To conclude, this medical insurance system is very important and affects the lives of millions of farmers, there is clearly a need to review its source of funding.   [1] Prime Minister’s Decree No. 981/2015 enacting the Executive Regulations for Law No. 127 of 2014 on the Medical Insurance for Farmers and Agricultural Workers, Official Gazette, Issue No. 17 (cont.) (a), 27 April 2015.