Private medical insurance (PMI) is becoming an increasingly popular option for expats and locals alike in Hong Kong with government tax breaks.
But international PMI experts warn expats have an extensive list of items they need to check off before thinking about moving to the region – not least because Covid remains a pressing priority for authorities.
PMI increasing in popularity
Adam Francis, general manager – Hong Kong SAR at Now Health International, explains while medical insurance is not mandatory in Hong Kong, private medical care is a popular option with some expats who prefer shorter waiting times for treatment.
But Francis adds the popularity of PMI is not restricted to expats.
“It is also becoming increasingly popular with Hong Kong citizens, with the government tax incentivising private medical treatment through a Voluntary Health Insurance Scheme (VHIS),” Francis says.
“This is designed to reduce the burden on public hospitals.
“For the VHIS scheme, 90% of the insurers in Hong Kong offer the core and flexible benefits with the coverage of core plan on a worldwide basis.
“However, the benefit coverages under the core plan are quite limited and expats may look for an additional flexible or IPMI option.”
Check list before arrival
Ahead of arrival in Hong Kong, expats are advised to take a number of key steps, according to Francis’ colleague Stephen Wong, general manager – China at Now Health International.
These include ensuring all essential documents and visas are in place before departure. But as entry requirements can change over time, immigrants should check the latest information from the government’s website and prepare all documents accordingly.
A secure quarantine hotel for 14 or 21 days is a crucial part of requirements so expats are advised to book a designated hotel two months in advance.
If they have already been vaccinated against Covid, Wong advises all official documents must be kept.
Expats are also advised to ensure they have up to three months’ rent available upfront to secure a rental property.
In terms of health coverage in the region, Wong says that while Hong Kong offers a subsidised public healthcare system that is available to anyone with a smart ID card, patients need to wait for long periods before they can be seen at hospitals so he highly recommends expats seek private medical care.
And as Hong Kong is one of the most expensive parts of the world for private medical treatment, taking out global health insurance before settling down is recommended, as many of the costs associated with healthcare could cause a serious financial burden without the right level of coverage.
Remote care and benefit differences
Matthew Hubbart, broker relationships manager at William Russell, agrees, noting IPMI is a crucial benefit with Covid-19 cases continuing to rise in Hong Kong.
“With the knock-on effect of lockdowns and strict travel restrictions, the need for access to 24/7 telemedicine and counselling assistance services is higher than ever for residents in Hong Kong,” he said.
“So this is another important consideration for employers and individuals to make when considering their healthcare options.”
James Leung, regional director of health and benefits for Asia and Australasia at Willis Towers Watson, says a further consideration when expats are seeking access to medical care is whether they can speak the local language.
He also adds advisers should be clear about the terms, options and local differences in benefits, if different to an expat’s home country benefits systems.
ID cards and payroll enrolments
Upon arrival in Hong Kong, expats are advised to secure a Hong Kong ID card via the immigration department within 30 days of landing, and get an Octopus card.
This debit style card is most commonly used for public transport, car parking and vending machines, but can also be used to buy things like groceries, coffees and settling bills.
Cards can be applied for and topped up most commonly at MTR stations and branches of 7-Eleven.
It is recommended expats investigate a Hong Kong school as soon as possible as it is best to apply early for school places, Wong concludes.
But Leung also points out employees on payrolls in Hong Kong need to be enrolled into the Mandatory Provident Fund (MPF) system for retirement whether they are expat or not, and expats working in China are now required to be enrolled into social insurance.
Covid remains the number one priority
And looking ahead, Francis says Covid will remain a priority for authorities in the region.
“Covid 19 is the number one priority for the Hong Kong government is to minimise the inflected cases and towards to zero case environment,” Francis said.
“Thus the social distance requirements and restricted travel will be continuing throughout 2022.
“Mandatory Covid-19 testing will be rolled out by the end of March or early April. If the situation is not improved, a further round may be rolled out during the middle of the year.”