Is Voluntary Health Insurance better than the current public health insurance? (Comparison of surgical expense reimbursements)

The government has announced details of the Voluntary Health Insurance Scheme (VHIS), with an expected average premium of approximately £4,800. Compared to standard medical insurance plans, does the government-endorsed VHIS offer attractive benefits, and can it elevate the standard of medical insurance products? We compare the premiums and coverage for surgical fees under the VHIS "Standard Plan" with the basic plans of standard medical insurance products currently available in the market (Basic Plan, see Note 1).

Coverage for Surgical Fees

We compare the compensation limits for common surgical procedures of varying complexity, including haemorrhoidectomy, day centre colonoscopy or gastroscopy, and angioplasty. If these procedures are performed in public hospitals, patients may face long waiting times.

• Colonoscopy or gastroscopy performed at a day centre (either one): VHIS classifies this as a minor surgery, with a compensation limit of £5,000, which is at the mid-range of market levels. Many standard medical insurance products in the market offer coverage exceeding £5,000.
   
• Haemorrhoidectomy: VHIS categorises this as an intermediate surgery, with a compensation limit of £12,500, which is higher than most standard medical insurance products in the market.
   
• Angioplasty: VHIS defines this as a major surgery, with a compensation limit of £25,000, which is only at the mid-range of market levels.
   
• Note: Surgical categorisation varies across different products. For instance, for the same surgery A, VHIS may classify it as a major surgery, while other standard medical insurance products might categorise it differently, resulting in varying coverage percentages.
   

Premiums

The government has estimated the average VHIS premium at £4,800. However, medical insurance premiums are age-based, so consumers should pay attention to the premiums applicable to their insured age for accurate comparisons. According to media reports, by age group, individuals insuring before the age of 24 will pay an annual premium of approximately £2,400; for insured individuals aged 40 to 44, the premium is expected to rise to £4,600; and for those aged 60 to 64, the expected premium reaches £10,200 (see Note 2). We also compare these with the annual premiums of standard medical insurance products for corresponding age groups (see Note 3).

• Across the aforementioned age groups, the estimated premiums for VHIS are significantly higher than the average annual premiums of standard medical insurance products in the market, particularly for the 40 to 44 age group. 
   
• Based on the compensation limits for the aforementioned surgeries, products such as Cigna Healthcare Voluntary Medical Insurance, Manulife Guardian Life, and Zurich Smart Life offer similar compensation limits to VHIS, but these standard medical plans are notably more affordable than VHIS (for the aforementioned age groups).
   

In summary, for the common surgical procedures mentioned above, the compensation limits under VHIS are comparable to the current market average, with only the limit for haemorrhoidectomy showing a slight advantage. However, its estimated premiums are substantially higher, exceeding the market average by more than 30%. Of course, when evaluating a medical insurance product, many coverage aspects need to be considered. In the future, 10Life will analyse the VHIS from various perspectives, so please stay tuned.

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Notes:

1. The aforementioned standard medical insurance products are "Basic Plans" without additional medical coverage, with the insured ward category being standard ward and global coverage.
    
2. The estimated premium data for VHIS is sourced from Wen Wei Po ["Voluntary Health Insurance Average Premium £4,800"].
    
3. The premiums for the aforementioned standard medical insurance products are based on the average premiums for ages 18 to 23, 40 to 44, and 60 to 64, assuming the insured is male and a non-smoker.

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.