Understanding Inpatient Insurance in Hong Kong

Looking at Health Insurance in Hong Kong can be a complicated proposition. Between the different insurance policies, benefit options, and the sheer number of both local and international health insurance companies offering medical protection, simply knowing where to start can be confusing and stressful!

Adding to the intricate mix is the understanding of whether or not you actually need health insurance in Hong Kong at all.

The Hong Kong Healthcare System

The way healthcare is provided in Hong Kong can be novel to many new residents of the city.

Hong Kong offers both government-subsidized public healthcare services alongside private hospitals and clinics. This means that, in contrast to somewhere like the USA, as a patient you will have a tremendous amount of control with where you go to receive your medical treatment – you have the ability to seek healthcare at either a public hospital or a private one.  As such, you have control over the amount that you will (ultimately) spend receiving healthcare in HKSAR; this is because treatment at Public medical facilities in the city will normally cost much less than healthcare facilities operated on a private basis.

However, it is important to note that, when it comes to private medical costs in Hong Kong, treatment will be extremely expensive. In fact, Hong Kong is estimated by many insurance companies to have the second highest average cost of private healthcare in the world – falling only behind the USA in terms of the price point attached to treatment.

As such, receiving treatment at a private hospital for a serious medical condition will be costly – and, for most people, completely unaffordable without some form of assistance.

This is where health insurance comes into play.

Inpatient Medical Treatment and Insurance in Hong Kong

When it comes to health insurance the first thing to understand is that you will normally have no choice to opt out of in-patient protection.

This is to say that all Health Insurance plans, whether underwritten by a Hong Kong Insurance company or offered by an International Health Insurance provider, will include an inpatient coverage benefit as a core component of the policy.

Inpatient healthcare refers to any treatment where an overnight stay in a hospital (or similar facility) is medically necessary – under the best medical practice you are required to stay at the medical provider to receive longer term care. If you are receiving treatment at an, already, expensive private hospital then the cost of that care can quickly climb if you are forced to receive it on an inpatient basis – if you have to stay at the hospital or clinic for one night or longer.

In fact, for many people in many countries worldwide, a single inpatient stay will often be the most expensive medical treatment they ever receive. 

This is because inpatient treatment covers things like Heart Transplants, Cancer Surgeries, and serious illnesses that require long term treatment (like Dengue Fever, Malaria, and Covid). Many injuries (from car accidents, for example), burns, and other traumatic accidents will also require longer care under observation and will typically need inpatient medical treatment.

The seriousness of many inpatient medical concerns, and the cost of their treatment, is why inpatient insurance coverage comes bundled with every single health insurance option available through a Hong Kong Insurance broker like CCW Global.

However, this doesn’t mean that all inpatient medical insurance is the same, or even equal.

Inpatient Health Insurance Customization

Depending on the insurance company you choose to purchase a health insurance policy from, there can be vast differences in the coverage provided under an inpatient insurance benefit.

Most inpatient health insurance coverage benefits will provide, as a standard part of the policy, protection against:

Costs of your hospital room – with a choice of private or semi-private

• Surgical and Anesthetic fees
• Operating Room Charges
• Ambulance Transportation fees if applicable
• Organ Transplants
• Inpatient Diagnostic Tests, including X-Rays and MRIs

In some cases, limited outpatient insurance services may be provided through the inpatient benefit of a health insurance policy. This will be subject to change at the insurer’s discretion, but it may be possible to obtain coverage against the costs of things like specialist rehabilitation or outpatient cancer treatment with no additional costs.

As there are so many insurance companies offering health insurance protection in Hong Kong there are no universals within the market – two insurance companies offering Inpatient Health Insurance will likely do so in a completely different manner. Consequently, it is important for you to fully evaluate any policy you may be considering, and understand that there may be tools for maximizing the efficiency of your medical protection.

Inpatient Health Insurance Premiums and Deductibles

Because private healthcare in Hong Kong is expensive, the cost associated with health insurance can be high as well. However, depending on the type of policy you choose to purchase there can be ways to manage the premium you will pay for inpatient medical insurance protection.

The first thing to realize is that there are actually two ways in which the majority of health insurance companies will calculate a premium. The first is via experience rating, and is common on medical insurance policies provided by Hong Kong Insurance Underwriters. With an experience rated policy, the policyholder’s claims history under the plan is factored into the amount that they will pay for coverage. The more medical treatment you receive, the more you can expect to pay.

This makes local health insurance policies a great option for individuals and families that don’t want fully comprehensive insurance coverage, but who are concerned about accessing and paying for medical treatment in a worst-case scenario. By limiting the plan’s usage to only the most necessary inpatient treatment, there will not be a risk on ongoing claims, keeping the claims experience (and consequently) the cost of coverage low.

In contrast to this, International Health Insurance companies will normally price their insurance plans on a community basis. The premium for plans offered by international underwriters will be calculated based on the average claims rate within a given “community” over the course of a year. In practice, this means that all policyholders of the same age, with the same plan, and with the same geographical coverage area will expect to pay the same premium. The actual claims made under the plan will not factor into the policy’s cost, but the initial premium of an International Health Insurance policy will usually be much higher than for a comparable Hong Kong Medical Insurance plan.

However, if you are looking to purchase international coverage, it is possible to manage your premiums by implementing a very high deductible.

Inpatient Health Insurance Catastrophe Cover

An Inpatient-Only health insurance with a high deductible is normally referred to as “Catastrophe Insurance” due to the simple fact that it is really only usable in the absolutely worst-case scenario.

A deductible is the portion of your policy that determines how much you will contribute to the cost of your medical treatment when you submit a claim. Health Insurance policies can include a US$0 deductible or a deductible of US$2500 (or higher) – with this aspect of your coverage you are entirely in control. But the higher your deductible is the cheaper the policy will normally be – by contributing more towards the cost of your own care you are limiting the insurers risk of having to pay a claim, and the overall premium associated with the plan will come down.

In this manner you are able to access high levels of coverage, against some of the costliest medical conditions and treatment you will likely experience in your life, at an affordable price.

Hong Kong Health Insurance Advice

If you have any questions about inpatient health insurance in Hong Kong, or if you would like to explore further health insurance options for yourself or your loved ones, please Contact Us today to speak with an independent insurance broker.