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Rapid growth in demand for private health insurance in China and its impact on expatriates

According to a recent Ernst & Young report, the market for private health insurance in China is increasing a rapid rate. Insurance premium revenue jumped from RMB 1.5 trillion in 2014 to RMB 2.4 trillion in 2015 and is projected to reach almost RMB 5 trillion in 2020. The increase in premiums must indicate that more and more people are seeking private health insurance to protect themselves from medical costs. Though the public healthcare system in China provides some basic coverage, it cannot meet the requirements of more affluent patients and especially most expatriates in China. In this article, we will discuss the rise of health and medical insurance in China and how it will impact expatriates and local nationals.

What Factors Drive Demand For Private Health Insurance In China?

The trend of a focus on well-being is increasing among the aging and wealthier Chinese population, according to the Ernst & Young report. It is widely known that the standard of public hospitals in China varies from city to city. Usually public hospitals in Beijing, Shanghai and Guangzhou are better than those in municipal or rural areas – as you would expect. Therefore, most patients will prefer large reputable public hospitals in major cities if condition permits. With increased pressures, these larger public hospitals in major cities are becoming overcrowded with much longer waiting period and line-ups. This is causing difficulties for expatriates seeking medical care in some Chinese medical facilities.

We should also note that the medical costs can cause a financial burden to many Chinese and foreign patients. With a private expat health insurance plan, they can reimburse the prescription drug costs and supplement their public health insurance plans.

The increased focus on health issues, unsatisfactory public healthcare services,  increased medical expenditure, relaxed private health insurance regulation, etc are the factors that drive demand for private health insurance in China.

International Health Insurance For Expats Living And Working In China

Most expats living and working in China will prefer international health insurance over a local plan that is meant for local Chinese nationals. First of all, most foreigners are excluded from public heath insurance system. Second, even if you can access to local public health plan, you will still need to pay co-payments. The Chinese public health insurance system has little reimbursement for out-patient medical treatment fees. Thirdly, most expats staying in China prefer private hospital and clinics. These private medical facilities are equipped with foreign medical staff, English-speaking doctors and top standard of medical care. The decor of the private hospitals is also more welcoming for expats in China. Medical treatment at private medical facilities can cost much higher than at a public hospital in China. In fact, many insurers report that private hospitals are often more expensive than hospitals in the United States. With an international health insurance plan on hand, expats do not need to worry about the high medical expenditure and protect your financial security.

What Does International Health Insurance Cover? 

If you are living in China or planning to move there, an international health insurance plan can provide flexible and portable coverage along with world-wide service. It will not only let you select the hospital, but also medical providers and doctors. A typical international health insurance plan will provide coverage options such as hospital coverageoutpatient treatment, medical emergency evacuation, routine health check-ups, dental & vision care, life cover, disability cover and accidental death. Expat health insurance premiums will vary depending on the coverage of the plan, your age, citizenship and several other factors. Some plans may not cover pre-existing medical conditions or may be able to provide coverage for your previous medical condition depending on the medical underwriter’s decision.

Choose The Right International Health Insurance Broker for China

We are very experienced in covering expatriates in China. As an independent broker, we can be of assistance when it comes to choosing international health insurance in China. Expat Financial offers several different international health insurance plans for expatriates across most parts of the globe. We also offer excellent service before and after you purchase your international health insurance plan. If you have questions about our international medical insurance plans or you want to discuss your needs and produce a customized quote, please contact us or complete the quote form