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Local health insurance appropriate for expat exployees?

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  1. #1

    Local health insurance appropriate for expat exployees?

    Hello all,

    My employer is just setting up employee health insurance in Hong Kong. We are a very small company (~8 people), about half and half local and expat (USA) employees. We have been shocked by the price difference between local HSBC SME-oriented health insurance plans and "proper" expat plans such as from William Russell, etc.

    The plan we are considering moving forward with is Group 100 Medical Plan #4 from HSBC with Outpatient Benefits included (see attached). The annual premium is HK$1806. I understand that hospital fees in HK are dramatically less than the USA, but have no experience with them directly, so am concerned.

    For example, the max reimbursement "per disability" for hospital charges is HK$15,000 (~US$1924), which would instantly be exceeded by most visits in the US. Is this a reasonable maximum?

    For "General Medical Practitioner Consultation" they will reimburse 80% up to HK$180 per visit. This seems quite low. "Diagnostic X-Ray and Lab Tests" max out at HK$1500 per year! Any advice?

    Thanks,
    Chris

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  2. #2

    Join Date
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    A local health plan like that would be essentially worthless in the US, where a day at the hospital can be $2,000-$4,000 US for even a simple thing. For example the cost of delivering a baby at a US hospital is about $10,000-$17,000 US for a non complicated birth.

    Many expats health insurance plans cover "emergency only" treatment when they are back in the US. You might look at something like that which may be considerably cheaper.


  3. #3

  4. #4

    @penguinsix,
    The local health plan will be mostly used here in HK, where I live. The plan doesn't cover ANY expenses abroad, but that's not my question anyway. I wondering whether this is an appropriate plan for living here in HK, relative to HK health care costs.

    @bdw
    Which plan specifically do you have? They a variety of options.

    Last edited by christolles; 09-09-2011 at 11:10 AM.

  5. #5

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    Room rates in Private hospital, range from $1,000- $ 5,000/ depending on number of patients in the room. Doctors visit fee and surgical costs also will vary depending on the Room.


  6. #6

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    The Bupa site I linked to above has online quotation tool for both corporate (more than 5 people) and individual.

    My company provides Bupa Gold. Basic Hospital + Surgical is HK$18k. Extra clinical benefit is $13k. There is also dental and maternity options which my company does not provide.

    I would say its a waste of money. But I have 2 young kids who are always getting sick and its good piece of mind. But if it was my money I'd probably consider a cheaper alternative.


  7. #7

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    and public hospital rooms in the public ward are $100/day....

    ps> i'm hoping it is PEACE of mind rather than PIECE of mind, otherwise, you may need more medical benefits really soon... lol


  8. #8

    Thanks all!

    Looks like a general approach is that local health care plans assume costs relative to public hospitals (HK$100 for emergency room visit?!?) while "expat" plans assume costs relative to private hospitals. Considering the overall good things I hear about public hospitals, my personal philosophy of living in a foreign place, and the distance of my home to a private hospital, I think I would end up using public hospitals anyway.

    Obviously one important thing for my company to look into is coverage on China mainland and during business travel to US, etc. Don't know if HSBC can add those services to our plan. For others considering these questions, these two links from Bupa are very helpful: fees at public hospitals and fees at private hospitals.


  9. #9

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    Sounds like you are in the same position we were in. Prior to December last year, I worked for a large US firm which had a global health policy with Cigna - all singing, all dancing, covered anyone anywhere in the world for anything for the senior expats only (the locals and juniors in the office were on a local plan). And cost a FORTUNE.
    When we did the management buyout of the company, we were no longer covered and had to look at alternatives. We could have taken out a similar Cigna policy, for a huge sum of money, or moved to the junior staff plan. Our junior staff have various illnesses over the years and never complained about the plan - so it seemed to cover enough for HK - except that my business partners are both american and were terrified that it would "not be enough". So they both took out their own private, personal US-based plans (at great expense) and I've moved to the one the juniors were on. Looks fine for HK.

    My take on this - Americans have weird views about medical insurance that is impossible to understand if you are not an American. The rest of the world copes quite fine. Go for something local! We looked at Bupa, but in the end are with Blue Cross.


  10. #10

    Thanks MovingIn07 - which BC plan did you ultimately select?


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