Health Insurance Scheme Announced

Secretary for Food & Health Prof Sophia Chan has announced details of the Voluntary Health Insurance Scheme.

Speaking at a press conference today on initiatives in the 2018-19 Budget, she said participating insurance companies will offer private hospital insurance plans that are certified by the Food & Health Bureau.

The insurance products should offer guaranteed renewal up to 100 years of age, have no lifetime benefit limit and have a 21-day cooling off period.

Coverage will extend to unknown pre-existing conditions, ambulatory procedures and in-patient psychiatric treatment.

Prof Chan said the scheme will encourage people to use private healthcare services and relieve pressure on the public healthcare system in the long term.

"If you compare the current insurance schemes, hospital insurance scheme versus our new VHIS standard plan, you would find that actually there are more incentives in terms of coverage, in terms of protection that we have included whereas the current insurance have not included those items.

"I think this is the major incentive. Of course, the tax deduction is another incentive."

Premiums paid by a person for themself and their dependents can be deducted.

The deduction ceiling is $8,000 per insured person annually with no limit to the number of dependents eligible for tax deduction.

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