Hong Kong’s insurance market is mature and has a wide range of insurance products to choose from. However, since medical insurance products are generally complex and come in many varieties, it is difficult for consumers to understand and compare products in detail. The launch of Voluntary Health Insurance not only improves the protection level of hospitalization insurance products but also enhances the transparency of the products.
The Voluntary Health Insurance Scheme covers the purchase of personal hospital insurance of a reimbursement nature for yourself and your family, that is, insurance that pays compensation based on the actual medical expenses of hospitalization or day surgery, so it does not include general outpatient services, hospital cash, critical illness insurance or Group insurance.
Standardized and easy to compare
Voluntary Health Insurance has standard policy terms and protections. Insurance companies’ medical insurance products must meet relevant requirements before they can be approved by the Food and Health Bureau to become Voluntary Health Insurance approved products. Approved products are divided into two types: standard plan and flexible plan. The standard plan provides basic hospitalization protection at the corresponding general ward level, while the flexible plan adds flexible additional benefits, such as higher sums of benefit and more protection items, to the public on the premise of meeting the requirements of the standard plan. choose.
The accreditation numbers, plan information and standard premiums of all recognized products are uploaded to the official website of the Voluntary Health Insurance Scheme to facilitate the public to understand product details and make comparisons. High transparency can help promote market competition, allowing insurance companies to improve product pricing and design.
Improve product protection levels
All recognized products of Voluntary Health Insurance must provide the following protections. These protections were rarely seen in general medical insurance products in the past, but have now become basic requirements of Voluntary Health Insurance.
Voluntary Health Insurance
| voluntary health insurance | |
|---|---|
| 1. Guaranteed renewal until age 100 | ✔ |
| 2. There is no “lifetime protection limit” | ✔ |
| 3. 21-day cooling-off period | ✔ |
| 4. Pre-existing conditions unknown at the time of application | ✔ (25% in the second year, 50% in the third year, and 100% full compensation thereafter) |
| 5. Treatment of congenital diseases | ✔ (Including treatment of congenital diseases that appear or are diagnosed after 8 years old) |
| 6. Day Surgery | ✔ (e.g. endoscopy performed in ambulatory clinic) |
| 7. Prescribed diagnostic imaging tests | ✔ (For example, CT scan and MRI scan, 30% coinsurance is provided) |
| 8. Prescribing non-surgical cancer treatment | ✔ (e.g. radiotherapy, chemotherapy, targeted therapy) |
| 9. Psychiatric inpatient treatment in local hospitals | ✔ (Can receive up to NT$30,000 in compensation per policy year) |
| 10. Premium Transparency | ✔ |
Tax deductions available
The government provides tax incentives to encourage citizens to participate in the Voluntary Health Insurance Scheme. Taxpayers who purchase approved products of voluntary health insurance for themselves or specified relatives (including the taxpayer’s spouse, the taxpayer’s or his spouse’s children, grandparents, parents and siblings) can apply for tax deductions for each tax year. The maximum premium deduction amount per insured person is NT$8,000, and there is no upper limit on the number of policies and the number of insured persons that can apply for tax deduction.
The standard plans and flexible plans under the Voluntary Health Insurance Scheme provide the public with more regulated choices. Consumers can make more comparisons and learn more about the contents and premiums of different products, the rights and responsibilities of policyholders, as well as the services, background, and operating models of insurance companies, and then choose appropriate medical insurance products based on their needs and affordability.
Conclusion
In conclusion, the implementation of the Voluntary Health Insurance Scheme in Hong Kong marks a significant step towards enhancing the transparency and quality of medical insurance products available to consumers. This initiative addresses the longstanding issue of complexity and lack of clarity in the market by standardizing policy terms and protections, making it easier for individuals and families to understand and compare insurance options.
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