High-end VHIS
The Voluntary Health Insurance Scheme (VHIS) is committed to providing consumers with additional choices, allowing the Insured Person to choose private medical services when needed. This article focuses on discussing high-end VHIS, so that readers can have a better understanding and make appropriate decisions when purchasing insurance.
The aging population problem in Hong Kong will significantly increase the government’s resource allocation and related facilities and expenditure in the next 20 to 30 years. That is why we had the MPF in 2000 (for those born in the 70s and 80s, who had just graduated from university at that time).
Now, this group of friends has been working for a long time. As we age, our demands and requirements for medical care will increase. VHIS is here to add medical security for retirement. At the same time, it could shift some of the pressure from public medical care to private hospitals.
High-end VHIS is one kind of the VHIS Flexi plans. In addition to basic medical benefit items which are also provided in standard plans, they provide full-covered coverage, and even additional medical coverage like free bodycheck coverage to the Insured Person (subject to the final terms and conditions of each policy).
Features of High-End VHIS
1. Full-Covered
The biggest feature of high-end VHIS is that they provide full-covered protection to medical expenses. Items such as surgeon’s fee, intensive care, prescribed diagnostic imaging tests, prescribed non-surgical cancer treatment, etc. are generally fully compensated within the stated annual benefit limit.
When comparing high-end VHIS, it is possible to compare the annual benefit limits of different plans.
Taking Bowtie Pink as an example:
| Bowtie Pink (Ward) | Annual benefit limit: HK$8 million Lifetime benefit limit: HK$40 million |
| Bowtie Pink (Semi-private) | Annual benefit limit: HK$10 million Lifetime benefit limit: HK$50 million |
| Bowtie Pink (Private) | Annual benefit limit: HK$20 million Lifetime benefit limit: HK$80 million |
- Room and board
- Miscellaneous expenses
- Attending physician rounds fee
- Attending doctor’s visit fee
- Intensive care
- Surgeon fee
- Anesthesiologist fee
- Operating theatre charges
- Prescribed diagnostic imaging tests
- Prescribed non-surgical cancer treatment
- Pre- and post-confinement / Day case procedure outpatient care
- Psychiatric treatment
- Accident emergency outpatient treatments
- Outpatient kidney dialysis
- Hospital companion bed
2. Deductible Options
In addition, high-end VHIS generally offer different deductible options to help customers reduce their premiums.
The deductible refers to the eligible medical expenses that the customer is responsible to pay for during each policy year. The insurance company will compensate the remaining expenses, subject to the annual benefit limit.
Usually, companies offer their employees group medical insurance, which usually provides basic and limited hospitalization coverage. So, if you are one of the working class, and wish to have sufficient additional protection, high-end VHIS would be a great top-up medical insurance choice for you.
How can deductibles lower the premium?
For example, a woman in her thirties (a smoker) who opts for high-end VHIS without deductibles that covers standard ward treatment, and it costs around HK$600 per month. While she ages, and the premium increase.
But if she could use the group medical insurance that provide HK$20k for hospitalized treatment to settle the deductibles, then she could purchase a high-end VHIS with a HK$20k deductibles plan. In this way, the premium can be reduced by almost half, to about HK$300 per month while coverage remains unchanged.
That’s how customers could lower theire premium with deductibles.
Bowtie Pink offers four deductible options: HK$0, HK$20k, HK$50k, and HK$80k. You can choose the appropriate deductible option based on your financial situation and existing medical coverage.
3. Benefit Limit of High-End VHIS
Since high-end VHIS is a type of VHIS Flexi plans, insurance companies have the freedom to design their products.
The coverage, benefit limit, and exclusions of different high-end VHIS on the market vary, so consumers may sometimes find it confusing to choose.
Using Bowtie Pink VHIS as a reference, the following table compares the high-end medical protection plans of 7 insurance companies on the market:
| Bowtie Pink | Other High-End VHIS | |
| Coverage | Full coverage | Full coverage |
| Annual benefit limit | HK$8 million – 20 million | HK$10 million – 30 million |
| Lifetime benefit limit | HK$40 million – 80 million | HK$30 million – No limit |
| Pre- and post-confinement / Day case procedure outpatient care | Full coverage within 90 days | Full coverage within 60 to 90 days |
| Prescribed non-surgical cancer treatments | Full coverage | Full coverage |
- Note: Not all items are listed and compared, as high-end medical protection plans actually include almost everything, such as Angioplasty, cancer (involving targeted therapy), total knee replacement surgery, and other expensive medical services.
4. Premium of High-End VHIS
As previously mentioned, the premium of high-end VHIS will increase rapidly with age. Therefore, continuing to be insured in retirement will also bring considerable financial pressure (not including inflation).
If we take the example of a woman in her thirties, the annual premium she pays at the age of 65 may be more than HK$100,000. And that’s why medical financing is so popular (before you commit, It is recommended to consult a professional financial advisor).
Taking Bowtie Pink as an example, the premium depends on your gender, age, smoking status, and chosen deductible:
| 30-year-old non-smoking male/female | Bowtie Pink (Ward) | Bowtie Pink (Semi-private) | Bowtie Pink (Private) |
| HK$80k deductible | $186/month | $273/month | $509/month |
| HK$50 deductible | $208/month | $317/month | $580/month |
| HK$20 deductible | $304/month | $417/month | $987/month |
| HK$0 deductible | $596/month | $772/month | $1188/month |
Get a quote now to see how much it costs to buy high-end health insurance for yourself !
Finally, regarding financial arrangements, the expenses of VHIS can be used for tax deduction.The maximum qualifying premiums for deduction is HK$8,000 per policy per insured person.
If calculated at a tax rate of 17%, it actually saves about HK$1,300 in tax burden.
If a family of four applies for insurance together and the couple files taxes jointly, the decimal places may be complicated. However, medical protection is inevitable, and if tax expenses can be saved on necessary expenses, why not purchase it?
The earlier you plan, the better, especially when it comes to your own protection.
