Health Insurance: In Hong Kong

Health Insurance in Hong Kong is not as complicated a proposition as you may think.

This often comes as the surprise to many new arrivals, especially if they’re coming from a country like the USA or Australia. However, the simple truth is that, in Hong Kong, health insurance is not actually a necessity – if you are a resident of HKSAR then you are able to avail yourself of the services provided by the Hong Kong Public Healthcare system, often at an extremely low cost.

Having said this, there is a thriving private medical system, sitting alongside the Hospital Authority administered facilities. Choosing to use private healthcare services in Hong Kong comes with a hefty price tag, which can be offset with the purchase of a comprehensive health insurance plan. But, as previously stated, this is not a necessity if you are planning to only utilize public medical treatment while in the city.

If your life is more complicated, if you plan on significant overseas travel or if there is a risk that you may be relocating overseas in the not-too-distant future, then Hong Kong or International health insurance may be worthwhile depending on your specific situation. If you are planning on using private healthcare treatment at hospitals like the Adventist, Matilda, or Sanatorium, then health insurance may be in your interest.

Inpatient Insurance Coverage

Forming the basis of all medical insurance options in Hong Kong is an Inpatient Coverage Benefit. Inpatient Medical treatment means that the patient will remain in the medical facility for at least one night.

It is typically not possible to obtain any health insurance protection that does not include an inpatient benefit. This means, if you are interested in any additional coverage options offered by a health insurance policy, you will normally need to first take out (or be enrolled) in the plan’s inpatient medical coverage. However, there is a very good reason for this.

Inpatient medical treatment will often be the most expensive form of healthcare a person will ever receive in their life. A single hospital stay at a private facility in Hong Kong can mean having to pay tens of thousands of dollars in medical bills – which will be even more for a serious condition that requires surgery.

Inpatient coverage benefits protect your wallet from these costs by covering the fees for things like surgical rooms, anesthetists, and even your hospital room. Further to this, there is no “one-size-fits-all” solution when it comes to your inpatient coverage benefit. In many cases policies will enable you to refine your coverage and choose the protection that works for you. A great example of this is the protection afforded to you for the costs associated with your hospital room.

Under many Hong Kong and International health insurance plans you will be able to choose from Ward, Semi-Private, or Private room options for your inpatient medical treatment. Opting for a private room will come at a much higher cost than if you chose a ward, but can make a substantial difference in the comfort of your care during any treatment you may receive.

Outpatient Insurance Coverage

Outpatient medical treatment, including things like trips to the doctor for a sore throat, annual checkups and vaccinations, and other routine care, is generally much less expensive than inpatient treatment. However, you normally receive far more outpatient care at your primary physician or general practitioner than stays in a hospital so the costs of outpatient medical treatment can quickly add up, despite the fact that it is less expensive overall.

This is especially true if you have children.

Placing an outpatient benefit on your health insurance plan is normally an optional decision – this type of coverage is normally purchased in addition to the inpatient protection offered by a health insurance policy. Choosing a health insurance policy that offers outpatient protection will be more expensive than an inpatient-only plan, but many policyholders find that the increase utility is worth the additional costs.

Types of Health Insurance Coverage

In Hong Kong there are two prevailing forms of health insurance protection.

• Hong Kong Health Insurance
• International Health Insurance

Both these types of protection are designed to do the same thing – protect you against the costs of your healthcare. However, the go about the fundamentals of health insurance in slightly different ways, which could impact your ability to actually use your medical protection well into the future.

The first thing to realize is that Hong Kong Health Insurance plans are generally limited to covering medical costs inside Hong Kong. If you go outside the city, you will need to purchase supplementary travel insurance, or wait until you return home to receive treatment. Further to this, a majority of Hong Kong health insurance plans are “experience rated.” This means that your claims history under the policy will be factored into your renewal costs – receiving any medical treatment, or submitting claims under the plan, means that you can realistically expect to pay more at renewal.

In contrast to this International Health Insurance plans, underwritten by international insurance companies outside of Hong Kong, have the ability to provide medical protection to you and your loved ones no matter where you may go in the world. In terms of pricing, international health insurance products are generally more expensive than Hong Kong options at initial purchase, but as these plans are underwritten on a “community basis” your claims will not factor into your renewal premiums, making international medical insurance a sustainable long-term choice for internationally mobile families.

Health Insurance Costs and Premiums

Health Insurance is an expensive product, which is why it is important to understand that it is not a mandatory purchase in Hong Kong. However, if you have decided to purchase health insurance but are being disappointed by the prices you are seeing, then it is important to understand that you have options and the ability to influence your health insurance premium in a fundamental way.

Choosing a policy which only offers inpatient protection will be less expensive than a plan which includes outpatient coverage or even a maternity benefit, but there are alternatives to reducing the cost of your plan other than simply restricting the benefits being afforded to you.

On an international health insurance plan, you will typically be given the ability to choose where in the world your plan will provide coverage. Under international medical insurance products, you are normally provided the option of having your policy give you true worldwide coverage, or you may select different options including Worldwide Excluding the USA and regional/country specific coverage. This enables you to manipulate your options and significantly understand how your choices are going to impact your bank account.

Further to this are the discounts available through the implementation of an Excess or Deductible on your policy.

An excess, also known as a deductible, is the amount of money that you will contribute towards the cost of any medical treatment you may receive. This is paid in addition to your premium, and will be settled directly with the medical provider. Adding a deductible or excess to your Hong Kong or international health insurance policy means that you will have some “skin in the game” and the insurer will not be responsible for covering the total cost of your care, ultimately reducing the overall premium that you will pay for any insurance policy you purchase.

From the benefits you opt to include on your policy, to the frequency and type of payments you make, there is a lot of room to manage your health insurance premium and get it to a level that is comfortable for you.

Hong Kong Health Insurance Advice

When it comes to health insurance there are no right answers.

The policy you purchase will, ideally, be with you and your family for many years (if not decades) to come. As such, it is important to thoroughly investigate all the available options and how they will impact your life. From renewals, to where the insurance provider is headquartered, there are myriad little details that will impact your experience under the policy.

CCW Global has over a decade in helping individuals, families, and companies around the world find their perfect health insurance solutions. With our no-cost, no-obligation consultation process, we walk you through your options while empowering you to make decisions that are in your best interest.

To speak to an expert CCW Global today and arrange a free meeting about your health insurance coverage, please contact us today.

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