An economic system that is based on capitalism, coupled with an aging demographic, has helped to ensure that health costs in Hong Kong are among the highest in the world.
Stephen Ho, chief marketing officer from Pacifc Prime told Health & Protection: “The healthcare industry in Hong Kong is very commercially-driven, and private-sector doctors have the freedom to set their own prices.
“This has led to a significant disparity in medical costs across private medical facilities, which is further exacerbated by general inflation,” he said.
Hong Kong is the most expensive location in Asia for international private medical insurance, (IPMI) and the second most expensive in the world, after the United States according to findings from Pacific Prime.
“Hong Kong remains the second most expensive location in the world for individual and family plans, with average IPMI premiums of US$7,810 (up by 15%) and US$22,067 (up by 17%) respectively,” the Cost of International Health Insurance 2023 report found.
It also retains its position as the most expensive location in APAC in 2022, as it did in 2021 and 2020.
Hong Kong vs China
In comparison, IPMI premiums for individuals are significantly lower in China, averaging US$5,274 – a 10% increase from US$4,798 in 2021.
Premium rates are still relatively high though, as China currently ranks as the 11th most expensive country, below Brazil and above Bahrain. This is a slight improvement over last year, when it ranked 10th.
China does less well when ranked for IPMI premiums for families being the fifth highest – with Hong Kong at second – just below Dubai, and just above Taiwan. But this too is an improvement over last year, when it ranked fourth.
“After years of experiencing premium decreases, China is now coming out of its correction phase with a 10% increase in individual IPMI premiums in 2022,” the report continued.
“Despite the increase, China has dropped out of the top 10 from last year’s ranking and is now in 11th place. Meanwhile, family premiums have remained stable with only a 2% increase, resulting in China moving from 4th place in 2021 to 5th place in 2022.”
Aging population in Hong Kong
But a capitalist economic system Hong Kong is not the only factor, as demographic issues also come into play.
“In addition, rising health insurance premiums can be attributed to external factors such as an aging population and an increase in chronic disease prevalence,” Ho said.
“While people in Hong Kong are enjoying longer life expectancies, the growing number of elderly citizens is placing extra strain on the healthcare system.”
The report went into further detail about the demographics, noting in Hong Kong, health insurance premium increases can be attributed to external factors such as an aging population and an increase in chronic disease prevalence.
“While people in Hong Kong are living longer, an increasingly unhealthy aging population is putting extra burden on the healthcare system,” it said.
“Another factor contributing to medical inflation in Hong Kong is the growing number of cancer cases.
“However, while the highest medical costs are associated with cancer, the highest incidence of claims involves musculoskeletal conditions, likely due to sedentary lifestyles and remote work during the pandemic,” it added.
But, high health costs are nothing new for Hong Kong, which was also the most expensive location for IPMI in 2020. In fact it has almost always been in that position since the COHI report was first published in 2016 – with the one anomaly being in 2019.