Voluntary Health Insurance Scheme Full Coverage Plans Get Stronger: Policy Annual Compensation Limits Reach New Highs | 10Life

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Last year, the government introduced the Voluntary Health Insurance Scheme (VHIS), establishing uniform terms for the Standard Plan to enhance market transparency. However, the VHIS Standard Plan represents only the minimum requirements for health insurance, allowing policyholders to enjoy tax deductions with basic coverage. Building on this foundation, insurance companies have been competing to launch Flexible Plans with better coverage. Thus, the real competition lies in these Flexible Plans. This year, several "Full Coverage" (see Note 2) Flexible Plans have been introduced to the market. As the saying goes, competition drives progress, and insurance companies are becoming increasingly competitive. The coverage of newly launched VHIS plans, particularly the annual compensation limits, continues to reach new heights, with further enhancements tailored to the unique features of VHIS. This article will compare the "Full Coverage" VHIS Flexible Plans offered by AIA, HSBC Life, AXA Hong Kong and Macau, Bupa, and Manulife.

VHIS Annual Compensation Limit Reaches Up to HKD 40 Million

Traditional medical insurance sets compensation limits for each item, often imposing numerous restrictions on policyholders when making claims. However, the so-called "All-Inclusive" or "Full Coverage" VHIS plans essentially cover the full cost of multiple protected items, subject primarily to the annual compensation limit per policy year and the lifetime compensation limit. The annual compensation limit is particularly crucial. Consider the scenario where one unfortunately suffers from a serious illness, requiring substantial medical expenses in a short period. Coupled with medical inflation and the often exorbitant costs of cutting-edge medical technologies and drugs, consumers must evaluate whether the annual compensation limit of a "Full Coverage" plan is sufficient.

Even for the same product, the annual compensation limit may vary depending on the coverage area and ward level. Among the current "Full Coverage" VHIS plans, the highest annual compensation limit for private ward plans is offered by HSBC Life, reaching HKD 40 million (with worldwide coverage), which is particularly attractive to high-end executives. For semi-private ward plans, which are popular among the middle class, both HSBC Life and Bupa offer annual compensation limits of up to HKD 25 million (with coverage in Asia). For standard ward plans targeting the general public, both HSBC Life and AXA Hong Kong and Macau provide an annual compensation limit of HKD 5 million (with coverage in Greater China/Asia). As shown in Chart 1, new products launched this year continue to break through the annual compensation limits.

[Chart 1]

Comparison of 'Full Coverage' VHIS Plans: Annual Compensation Limit per Policy Year

First, Select Coverage Area and Ward Level

When purchasing a "Full Coverage" VHIS plan, individuals must first choose the coverage area (e.g., worldwide, Asia, Greater China), ward level (e.g., private ward, semi-private ward, standard ward), and deductible options. Consumers should note that not all options may be available for every product. According to Chart 2, HSBC Life offers the widest range of options, covering high-end worldwide private ward plans as well as more affordable Greater China standard ward plans, along with various deductible levels.

[Chart 2]

Comparison of 'Full Coverage' VHIS Product Options (Coverage Area, Ward Level, Deductible)

Enhancements to VHIS Features: Specified Non-Surgical Cancer Treatments and Pre-Existing Conditions Unknown at Inception

Undoubtedly, "Full Coverage" sets a relatively high standard for health insurance. To stand out, insurance companies strive to enhance coverage within the VHIS framework when designing products. One key feature of VHIS is the minimum requirement for specified non-surgical cancer treatments. These treatments, such as chemotherapy and targeted therapies, can incur significant and often limitless costs, particularly for the latter. However, the Standard Plan's compensation limit for such treatments is only HKD 80,000 per year. Referring to Chart 3, AIA and Manulife’s "Full Coverage" VHIS plans have set compensation limits for these treatments at HKD 2 million and HKD 2.5 million, respectively, while HSBC Life, AXA Hong Kong and Macau, and Bupa fully cover the costs of specified non-surgical cancer treatments.

VHIS mandates that insurance companies cover pre-existing conditions unknown at the time of policy inception, with a minimum requirement of 25% compensation in the second year, 50% in the third year, and full 100% compensation only in the fourth year. Some insurance companies have gone further to enhance this protection. For instance, HSBC Life and AXA Hong Kong and Macau offer full compensation from the moment the policy takes effect, without the need to wait four years.

Additionally, regarding the definition of a standard ward, many insurance companies define it as a room with more than two beds. However, some private hospitals, such as Gleneagles Hospital, offer standard wards with only two beds. If a policyholder opts for a standard ward plan and is admitted to a two-bed standard ward due to hospital arrangements, could this lead to disputes during claims? To address this, HSBC Life defines a standard ward as "a room classified as a standard ward by the hospital," which is a more flexible definition.

[Chart 3]

Comparison of Coverage Beyond VHIS Standard Plan

Utilising Deductibles to Lower Premiums

"Full Coverage" medical insurance, paired with high annual and lifetime compensation limits, provides policyholders with greater peace of mind when making claims. 10Life’s analysis of medical insurance coverage also calculated that the estimated medical protection ratio for the following "Full Coverage" VHIS plans (refer to Chart 4, see Note 2) exceeds 99.6%. This indicates that, across 12 common injury and illness cases of varying severity, including cancer, angioplasty, and dialysis, the average estimated protection ratio of these products is very high, nearly covering the full cost.

Generally, premiums for "Full Coverage" health insurance plans are not inexpensive. To reduce premiums, individuals can opt for plans with deductibles, where the policyholder must bear a portion of the medical expenses upfront. For those with corporate group health insurance, the deductible can be covered by the group plan. This is particularly relevant for senior executives and professionals, who can select a health insurance plan with a higher deductible based on the coverage of their group plan.

Most insurance companies in the market offer plans with coverage in Asia and semi-private ward options. Using this category for premium comparison, as shown in Chart 4, for a 40-year-old non-smoker, the annual premium for a plan with zero deductible ranges from approximately HKD 13,300 to HKD 15,800. The higher the deductible, the lower the premium. For example, plans with a deductible exceeding HKD 50,000 can have premiums below HKD 5,000. Among the VHIS plans listed, HSBC Life and Bupa offer such options.

[Chart 4]

Comparison of 'Full Coverage' VHIS Plans (Semi-Private Ward, Coverage Area: Asia): Estimated Protection Ratio and Premiums

Some consumers worry that opting for a high-deductible product might leave them without group health insurance to offset the deductible after retirement. In fact, the products mentioned in this article allow policyholders to reduce or eliminate the deductible at a specified age (usually near retirement) without the need for re-underwriting, offering a degree of flexibility. Individuals can consult their insurance company or advisor for further details.

Finally, a reminder to all: before purchasing insurance, ensure the product meets your needs and fits within your financial capacity. You can visit 10Life’s 《Product Decoder Comparison》 to compare various VHIS products in the market, analyse their key coverage details, and make an informed choice.

[ Compare VHIS Private Ward Plans, Adults]

[ Compare VHIS Semi-Private Ward Plans, Adults]

[ Compare VHIS Standard Ward Plans, Adults]

[ Compare VHIS Private Ward Plans, Children]

[ Compare VHIS Semi-Private Ward Plans, Children]

[ Compare VHIS Standard Ward Plans, Children]

Notes:

The above information is provided by 10Life for reference only and does not constitute a sales proposal. The information is updated as of 17 August 2020.
"Full Coverage" refers to the insurance company fully covering eligible medical expenses and other costs after deductibles (if any), subject to annual coverage limits, lifetime coverage limits, and other relevant conditions. Claims must be "medically necessary," and expenses must be "reasonable and customary."
The aforementioned estimated medical protection ratio is based on 12 common injury and illness cases of varying severity and medical services, under typical circumstances. 10Life actuaries calculate the estimated average protection ratio by comparing medical expenses to the compensation limits of medical insurance products. For details, refer to 《Scoring Methodology for Public Medical Insurance》.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

Last updated: 9 Apr 2026

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

Our team of professional content researchers focussing on insurance

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Voluntary Health Insurance Scheme offers increasingly robust full coverage plans, with policy annual compensation limits reaching new heights.

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