Many employees rely on group health insurance and mistakenly believe that it is sufficient to meet all their healthcare needs, and it is not necessary to purchase another health insurance plan. However, this can leave them vulnerable to underinsurance. What are the differences between voluntary health insurance and group health insurance? This article explores how you can effectively fill coverage gaps and potentially save on premiums.
What is the Voluntary Health Insurance Scheme?
In 2019, the Hong Kong Government launched the policy initiative known as “Voluntary Health Insurance Scheme” (“VHIS”), under which participating insurance companies offer hospital insurance indemnity plans that are certified by the Food and Health Bureau (“Certified Plans”). The objective of the VHIS scheme is to enhance the protection level of hospital insurance products, provide the public with an additional choice of using private healthcare services through hospital insurance, and relieve the pressure on the public healthcare system in the long run. The key features include:
- Eligibility for tax reductions
- Setting the minimum insurance coverage for individual health insurance with guaranteed renewal up to 100 years of age
- Coverage extended to unknown pre-existing conditions, day case procedures, non-surgical cancer treatments, psychiatric treatments, and so on
- High flexibility: Allowing additional benefits including higher sum assured, broader coverage scope, and additional medical coverage
What is Group Health Insurance?
Company health insurance, or group health insurance, is a healthcare benefit provided by employers to their employees. It often serves as a tool for attracting and retaining talent. While group health insurance typically covers basic inpatient and outpatient care, employers may also offer additional benefits like dental or vision coverage. The key features of group health insurance include:
- Ineligibility for tax deductions
- The scope of coverage is determined by the employer
- Premiums are covered by the employer
Is Group Health Insurance Alone Enough?
While group health insurance often covers common ailments (e.g. colds and flus), outpatient care, and inpatient care, it may have limitations in coverage amounts. For serious illnesses or surgeries, the coverage might not be sufficient. Additionally, psychiatric treatments may not be covered. Relying solely on group health insurance can be risky due to job changes or retirement, as coverage may end during these periods. Some companies may also require new employees to complete a probationary period before becoming eligible for group insurance. Therefore, it is essential to protect yourself with a VHIS policy.
Fill the Gap and Enhance Flexibility with a “Deductible”
In Hong Kong, group health insurance typically covers only about 50% to 70% of hospitalization and surgical expenses. But don’t worry, you can still achieve full coverage by leveraging your group health insurance. Simply purchase an additional health insurance policy with a deductible. These policies generally have lower premiums but offer comprehensive coverage. The policy will provide coverage after the insured has met the deductible. With an existing group health insurance policy, you can use the reimbursement from it to cover the Deductible. In this way, you can achieve higher coverage and comprehensive health protection at a lower premium!
Our Cigna VHIS Series – Flexi Plan (Superior) not only offers tax deductions of up to HK$8,000, but also provides a variety of plan levels to choose from. This includes coverage for hospitalization and psychiatric treatment for individuals with mental health conditions. Whether it is the cost, coverage scope, or value-added services, this plan is designed to meet the needs of the budget-conscious, helping you maximize your savings. Click here to learn more.