The Government has started a three-month public consultation on the Voluntary Health Insurance Scheme, and Secretary for Food & Health Dr Ko Wing-man hopes the community will support the proposals so it can proceed with legislative procedures to implement them as soon as possible.
Introducing the proposals at a press conference today, Dr Ko said insurers must offer consumers a Standard Plan that meets all 12 Minimum Requirements prescribed by the Government.
According to 2012 estimates by a Government-hired consultant, the average annual standard premium of the plan is about $3,600, which is 9% higher than the average premium of individual hospital insurance products - at the general ward level - in the market.
The Government also proposed tax deductions for individual hospital insurance policies that comply with the Minimum Requirements.
Dr Ko said the tax break is not the only incentive, as the scheme guarantees acceptance - even for high-risk individuals. A High Risk Pool is being suggested to meet this demand which would cost about $4.3 billion in public funds over 25 years.
The pool will be open to everyone in the first year of the scheme, then it will be limited to those aged 40 or under after that. The policyholder would pay the premium with a premium loading at 200% of the standard premium prescribed by the insurer.
Dr Ko pointed out that the Government's recurrent expenditure on medical and health services in the past seven years increased 60% to $52 billion in this fiscal year, which accounts for about 17% of the Government's total recurrent expenditure.
He believes the scheme could encourage people to use more private healthcare services, which could in turn, help relieve pressure on the public system and shorten waiting times.
