How the VHIS can give more protection when it matters most

In Hong Kong, the public health system is very well regarded and has been serving the city’s residents for decades. However, in recent years pressure has been growing on the system, leading to longer waiting times for treatment among public health service sector as resources are stretched. One of the ways the government has sought to ease the burden – and to offer greater flexibility to the public – is through the Voluntary Health Insurance Scheme¹ (VHIS).

Under the scheme, patients are encouraged to adopt a greater take-up of private healthcare, especially at private hospitals. The VHIS works by standardising private hospital insurance products in partnership with insurance providers. The scheme offers a host of benefits. Unlike traditional medical insurance, which often permanently excludes or rejects pre-existing conditions, all VHIS Certified Plans cover unknown pre-existing conditions on a phased, graduated reimbursement schedule over the first four policy years. Day-case procedures performed at a clinic or a hospital, such as having a skin lesion removed and endoscopy, are covered. Coverage for prescribed non-surgical cancer treatments are also usually covered. There are financial incentives, too. The VHIS provides tax deductions of up to HK$8,000 per insured person, per year.

Ultimately, the VHIS aims to make private health insurance more affordable for people in Hong Kong. For many, that becomes particularly useful when it is combined with their existing Group Medical insurance provided by their employers. With both products in place, coverage becomes much more comprehensive.

Group medical insurance provided by an employer is an important employee benefit, but it may not always be enough to cover major medical expenses. Unexpected illnesses, complex medical procedures, or extended hospital stays can lead to costs that exceed the available benefits. Combined with rising healthcare costs over time, this highlights the importance of considering additional protection to help reduce potential financial burdens and provide greater peace of mind. Take cancer, for example. According to the Hong Kong Cancer Registry, in 2023² a total of 37,953 newly diagnosed cancer cases were recorded in the city, equating to 104 new cancer cases being diagnosed every day.

Cancer treatment in the private healthcare sector can be expensive and is often not fully covered under many standard group medical insurance plans. MSIG's VHIS Standard Care Plan helps bridge this gap by providing up to HK$80,000 per policy year for eligible outpatient cancer treatments, like radiotherapy, chemotherapy, targeted therapy, immunotherapy, and hormonal therapy, whether received at a private clinic or hospital.

For many types of cancer, timely access to treatment can be an important factor in achieving better health outcomes. By allowing access to private healthcare services, the VHIS Standard Care Plan can help reduce waiting times and provide greater flexibility in treatment choices. This allows members to focus on their recovery with greater confidence while providing valuable financial support and peace of mind for themselves and their loved ones.

In addition to major medical protection, MSIG's VHIS Standard Care Plan can help reduce out-of-pocket expenses through its Second Claim Cash Allowance Benefit. This feature is designed to complement an existing group medical insurance plan when eligible medical expenses are only partially reimbursed.

For example, suppose you undergo a minor surgical procedure at a private clinic that costs HK$3,000. If your Group Medical Insurance reimburses only HK$2,000, leaving you with HK$1,000 to pay, you may be able to submit a claim under the VHIS Standard Care Plan's Second Claim Cash Allowance Benefit. Subject to the plan terms and conditions, the remaining HK$1,000 could be reimbursed, effectively reducing or even eliminating your out-of-pocket expense.

By working alongside your employer-sponsored medical coverage, the VHIS Standard Care Plan provides an additional layer of financial protection, helping you make the most of your existing benefits while reducing the financial burden of eligible medical treatment.

Many of us rely on the Group Medical insurance provided by our employers because we think private healthcare is prohibitively expensive. However, under VHIS, it needn’t be for many scenarios.

Source: 
¹ https://www.vhis.gov.hk/en/about_us/scheme.html
² https://www.info.gov.hk/gia/general/202606/12/P2026061200704.htm

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