Voluntary Health Insurance Scheme (VHIS) mainly covers the hospitalisation costs incurred by the insured. The VHIS policyholder can enjoy tax deductions on the premium paid. The VHIS Standard plan is based on the minimum standards prescribed by the government such that products across insurance companies have almost the same terms. The VHIS Flexi plan is built upon the Standard plan by providing higher coverage through higher benefit limits or adding supplementary major medical. Similar to the product structure of mass market medical insurance, most VHIS plans have coverage limits on certain cost categories. VHIS is annually renewable with premium based on the age of the insured, and claims are on a reimbursement basis. We compare products based on the estimated coverage ratios under various medical scenarios, where the medical expenses are adjusted according to the room type (e.g. ward, semi-private) admitted at a Hong Kong private hospital.
VHIS products are certified by the Food and Health Bureau (FHB) to comply with the minimum requirements as follows:
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VHIS is actually a medical insurance product having similar benefit structures as traditional mass medical insurance. The major difference is that VHIS products must be certified by the government to comply with the minimum requirements, and the policyholder can enjoy tax deduction.
Taxpayers can claim a tax allowance on the VHIS premiums for themselves and/or their dependants. The maximum allowance on each insurance policy is $8000. The actual tax deduction is calculated by multiplying the insurance premium by the marginal tax rate, with a maximum tax deduction of $1360 on each policy.
For more details please refer to this article (Chinese Version Only)