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A heated conflict has erupted between the Syndicate of Hospital Owners in Lebanon and the Association of Insurance Companies.

The Syndicate of Hospital Owners in Lebanon, led by Sleiman Haroun, has announced that, starting February 2, 2025, hospitals will increase the rates agreed upon with insurance companies by 15%. This increase is aimed at ensuring that hospitals “can continue providing high-quality services to insured patients.”

The syndicate argues that “the actual cost of services no longer aligns with the rising prices of products, particularly non-billable items included in hospital services, notably due to the removal of subsidies on some of these items.”

In addition, according to the syndicate, “other factors have contributed to the increase in service costs.”

In an interview with This is Beirut, Assaad Mirza, the President of the Association of Insurance Companies, firmly rejected the proposed increase, specifying that Mr. Haroun had informed him of the decision via letter on December 24.

Mirza further explained that he contacted university hospitals, which confirmed that the increase in fees, commonly referred to as “the cost of living,” ranges between 3% and 5%. In his response to Haroun, Mirza reminded him that insured individuals and the Lebanese population in general “are already struggling with the high cost of living,” making it “impossible to impose another increase on them.”

Furthermore, he pointed out that most insurance policies have already been issued and do not account for such a significant rise.

Mirza concluded by emphasizing that the health insurance sector cannot bear this additional financial burden, especially given its current 130% loss rate.