The Henley Group | General guide to the Hong Kong medical system 1

General guide to the Hong Kong medical system

December 2013

THE WEALTH MANAGEMENT PROFESSIONALSHong Kong | Singapore | Shanghai | London

The Henley Group

The Henley Group | General guide to the Hong Kong medical system2

The Henley Group | General guide to the Hong Kong medical system 1

General guide to the Hong Kong medical system 02

What to do when you need medical attention 03

The cost of private medical treatment 04

Different types of medical cover available 05

Top tips and pitfalls when considering private medical insurance 06

Additional information 08

Content

The Henley Group | General guide to the Hong Kong medical system2

For those who have recently moved to Hong Kong, or are considering doing so, The Henley Group has prepared this brief introductory guide to Hong Kong’s healthcare system.

Generally speaking, Hong Kong’s healthcare is very good and reflects the highest standards found in other highly developed countries; many doctors in Hong Kong earn their medical degrees from top universities in the United States and other western countries. Local hospitals are equipped with the latest medical equipment.

There is no need or requirement to be registered with a particular GP or practice to receive treatment in Hong Kong and both public and private systems are available to all, based on affordability.

General guide to the Hong Kong medical system

The public system has three categories of charges; public charges for eligible persons; public charges for non eligible persons; and private charges. Those deemed ‘eligible’ are persons who are:

■ Holders of a Hong Kong Identity Card; ■ Children under 11 years of age with Hong

Kong resident status; and ■ Other persons approved by the Chief Executive

of the Hospital Authority.

By way of example, an inpatient with an acute condition staying in a bed for 5 nights will pay HKD550 as an eligible person, HKD23,400 as a non eligible person and HKD28,200 for first class private service within a public hospital.

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For those normal day-to-day complaints, possibly the easiest way for expatriates to seek help is from a GP at their nearest (public or private) hospital’s outpatients department, often open 24 hours a day, seven days a week. Queues are generally shorter and therefore waiting times reduced at the outpatient departments of private hospitals. There is no need to book in advance and appointments cost from HKD45 at a public hospital (for an eligible person) and approximately HKD190 at some private hospitals like Canossa Hospital (Caritas). This compares with a private clinic where charges can be around three times as much, often to see the same doctor.

For more serious issues such as child birth and surgery, the cost of treatment can vary significantly and is often a determining factor in where medical treatment is sought, especially when no or inadequate private medical insurance is in place. Hong Kong and China are second only to the United States for having the highest private medical costs in the world. Therefore, for expatriates that live and work here, or are planning to settle down, private health insurance is strongly recommended.

What to do when you need medical attention

The Henley Group | General guide to the Hong Kong medical system4

The following, empirical examples provide some perspective on how quickly the costs of medical treatment can escalate:

Child birth HKD120,000 – HKD150,000 Cancer treatment HKD40,000 per session

Excluding all pre and post natal treatment, natural birth accompanied by a 3-day stay in hospital cost around HKD120,000 and an elective caesarean section accompanied by a 5-day stay in hospital cost about HKD150,000.

A session (week) of chemotherapy treatment, where generally a minimum of four consecutive sessions are required, cost HKD40,000 per session.

Heart surgery HKD280,000 Back surgery HKD380,000

The placement of a coronary stent accompanied by a 2-day stay in hospital cost approximately HKD280,000.

Back surgery accompanied by a 4-day stay in hospital cost around HKD380,000.

The cost of private medical treatment

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When assessing your private medical needs, it is important to recognise and understand the different types of cover available in Hong Kong. This will help you to assess which type of cover is most appropriate for your individual circumstances and enable you to compare quotes on a like-for-like basis.

Private medical cover in Hong Kong can be provided on either a local or international basis. Local policies are generally cheaper because they only allow you to use a pre-specified network of local doctors, meaning coverage is available for treatment in Hong Kong, with extremely minimal cover if you go overseas. In addition, local plans generally restrict the level of claims payable according to a schedule

Different types of medical cover available

of benefits. This means that claims are generally only paid up to a specified amount per operation / hospital visit, etc. and are more of a basic policy providing access to day-to-day health care such as going to the doctor or getting a prescription drug than for more serious medical issues.

An international plan is generally more expensive because it provides a higher level of cover for a far broader range of benefits. Cover is provided for healthcare treatment received around the world, recognising the global mobility of expatriates, and comprehensive coverage generally pays for most treatments up to the plan’s maximum limit, e.g. USD1 million.

The Henley Group | General guide to the Hong Kong medical system6

■ Some individuals and families are lucky enough to have very comprehensive cover provided by their employer but it is crucial to remember that when your employment with that company ceases, so will your employee benefits; including your private medical insurance. Don’t be left without cover. There are simple measures that can be undertaken to avoid this.

■ Some private medical insurance policies provided by an employer may be insufficient to match your requirements, particularly if they offer no or limited cover for chronic conditions such as diabetes, hypertension, cancer, renal failure (dialysis), etc. Be aware that it is possible to buy a supplementary international plan covering major medical expenses but with a large excess to mitigate this situation at a reduced cost.

■ Be aware that there can be a waiting period for some elements of cover, such as maternity, where it is not uncommon for the insurer to request that the policy be in force for at least 10 months prior to covering costs in relation to that particular area of treatment.

Top tips and pitfalls when considering private medical insurance

■ Also be aware that some insurance policies, when taken out, are provided on a moratorium basis. This is effectively a waiting period (of usually two years) during which premiums are paid and the insurance policy is in force but before coverage of any pre-existing conditions may be permitted and covered. This is a grey area and many clients are advised to enrol with full underwriting to avoid having their claims rejected.

■ Some insurance policies have the right to cancel renewal of your policy because of your age or state of health. This is why it is important to look at the details of the policy when choosing a medical insurance plan for your family to avoid any unwanted surprises.

■ Sometimes, new medical insurers who have recently entered the market try to attract business by offering exceptionally competitive premium quotes. Be aware that if these are ‘teaser’ rates which do not necessarily reflect the underlying cost of the business they are writing, the premiums could shoot up at later renewal dates leaving you stuck paying the higher premiums or searching for a new

The Henley Group | General guide to the Hong Kong medical system 7

provider, which may be difficult if you have any pre-existing conditions you want covered.

■ Many insurance policies are structured so that the payment of treatment is made directly to the health provider. Others require the insured to pay for outpatient treatment and seek reimbursement following the provision of a claim form and associated invoice and receipt. If the latter sounds like an administrative hassle, you may find that you don’t end up making many claims and you are in fact paying for a benefit that you are not fully utilising.

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Should you have any concerns about whether the level of cover you already have in place is adequate, speak to your Henley Consultant or contact The Henley Group by email at getprotected@thehenleygroup.com.hk, to discuss the most appropriate private medical insurance plan for your particular needs and circumstances.

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Accident and emergencyThere are 16 public hospitals providing Accident & Emergency (A&E) Services in Hong Kong: http://www.ha.org.hk/visitor/ha_visitor_index.asp?Content_ID=200246&lang=ENG

Hospitals There are 41 public hospitals and institutions in Hong Kong: http://www.ha.org.hk/visitor/ha_visitor_index.asp?Content_ID=10036&Lang=ENG&Dimension=100&Ver=HTML

There are 11 registered private hospitals in Hong Kong:http://www.dh.gov.hk/english/main/main_orhi/list_ph.html

General outpatient clinics There are 73 general outpatient clinics administered by the Hospital Authority in Hong Kong: http://www.ha.org.hk/visitor/ha_visitor_index.asp?Content_ID=200250&Lang=ENG&Dimension=100&Parent_ID=10052

Registered doctorshttp://www.mchk.org.hk/doctor/index.htm

Additional information

DISCLAIMER: The contents herein have been prepared only for general reference purpose. You must not rely on any of the contents, including any opinion or view, for any purpose, nor should such contents be construed as offer, invitation, advertisement, inducement, representation, advice or recommendation of any kind. You should consult with the relevant professionals for obtaining professional advice that is tailored to suit your specific needs and situation. The Henley Group and its representatives make no guarantee, representation or warranty and accept no responsibility or liability as to the accuracy, completeness or correctness of the contents herein.

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The Henley Group | General guide to the Hong Kong medical system10

HONG KONG The Henley Group Limited1/F Henley Building5 Queen’s Road CentralHong KongT: +852 2824 1083 F: +852 2824 2024 www.thehenleygroup.com.hk

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