A newcomer’s guide to health insurance in China

Welcome to China! As part of your settling-in process, you will no doubt have many arrangements to consider once you’ve moved here, healthcare being a factor that will likely take central precedence.

After the Chinese government started allowing investment in private hospitals from foreign entities in 2012, the quality of medical care in China continues to flourish. Government spending within the healthcare sector is expected to reach US $1 trillion by 2020, which is a stark contrast from the 2011 figure of US $357 billion.

While it is not a legal requirement to purchase health insurance in China, most expats will find the need for a private health insurance plan so that they can enjoy coverage for the high cost of superior medical care charged in private facilities. Navigating through the diverse range of available health insurance options can be daunting for anyone, but Pacific Prime China is here to help with this handy newcomer’s guide.

Background on healthcare in China

It’s highly advised that any expat looking for health insurance in China are aware of the healthcare landscape in this country.

Common health problems in China

It might be scary to think about, but all expats in China should be aware of the common health problems faced by people living in this country. For example, air pollution is a big issue in major cities, with an average of 90 out of every 100,000 projected premature deaths in the 31 provincial capitals caused by diseases specific to air pollution, such as lung cancer and ischemic heart disease. Due to urbanization, and changes in diet and lifestyle, a number of other non-communicable diseases (e.g. diabetes) are also on the rise. With this in mind, it’s also important to know about medical treatment costs in China.

Medical treatment can be costly

Expats will tend to visit private or international hospitals to benefit from modern care that is comparable to the West, but this comes with a steep price tag. A trip to the GP at one of these facilities can easily set you back by RM ¥1,200 to ¥1,500, with prices charged for specialist appointments being significantly more expensive.

Expect to pay around ¥50,000 for an emergency surgical procedure and up to an astounding ¥98,000 for a C-section maternity package. Sometimes, the requirement for medical treatment can’t be planned (especially in the case of emergencies) so having that additional ‘safety net’ by securing a private health insurance policy may save you from breaking the bank.

Coverage levels available in China

All insurance plans will provide varying levels of coverage, below are the main types of coverage:

• Inpatient only: With an inpatient only benefit, you will be covered for overnight treatment at a hospital, but will not be covered for outpatient treatment such as day trips to the GP. Inpatient care is typically the most expensive, so being secured with this type of benefit can really save you a lot of money. The premiums charged for inpatient only plans are usually the cheapest, as it comes with the least amount of coverage.

• Inpatient + outpatient: This type of plan includes coverage for both inpatient and outpatient care, so you’ll also be covered for medical care that does not require overnight stays at a hospital. Policyholders with this type of coverage will often also be covered for preventative care check-ups, tests, and vaccinations. Please note that premiums charged for this type of plan will typically be higher than an inpatient only plan.

• Full coverage: If you’re looking for additional benefits on top of your inpatient and outpatient plan, then it’s a good idea to look out for full coverage plans offering add-ons such as maternity, vision, and dental cover. Insurance providers often refer to these additional benefits as “riders”. These benefits will usually come with a waiting period, also commonly referred to as a moratorium period, meaning that there will be a set period of time before the policyholder can make any claims on the benefit.

Local or international health insurance?

When shopping around for health insurance in China, you’ll also have to think about whether you want to purchase a local or international plan. Here’s what you need to know about each type of plan:

Local health insurance

As the name suggests, this type of insurance will cover you locally (in China). Some plans may even only provide coverage in one particular province or state.  This means that if you’re travelling overseas and want to be covered for treatment, you will need to buy a travel policy. Please note that for travel policies, coverage limits are usually very low, and they typically cover emergency treatments and repatriation costs only. Premiums for this type of policy are lower than international plans simply because the region of coverage is much lower.

International health insurance

If you’re looking for worldwide coverage, this type of plan is ideal for you. International plans are designed specifically for globally mobile expats, as it provides a great deal of flexibility in where you can be treated. For example, if you were to seek treatment in a country that may not be as medically advanced, an international plan will cover your medical fees if you decided to seek treatment in a country with more advanced healthcare instead. Please note that the majority of international health plans will not comply with the US Affordable Care Act (ACA) regulations, so if you’re a US taxpayer, you may want to consider an ACA compliant international plan.

Talk to a licensed insurance advisor

A respected insurance advisor like Pacific Prime China will offer a wealth of expertise as well as unbiased advice that will be very valuable in helping you find the best value deal available. Reputed insurance brokers have close relationships with leading insurance providers, meaning that they will be able to provide competitive rates that can sometimes be cheaper than going directly to an insurance company. There’s also the added bonus of benefiting from additional services often provided by brokers, such as dedicated customer services support and renewals teams.

If you’re looking for advice on health insurance in China, feel free to contact us or use our online tool to compare quotes today.

Disclaimer: Pacific Prime China solely represents, operates and manages locally regulated insurance products and services in the territory of PR China. Any references to Pacific Prime Global Company or Group, the international services, insurance products or otherwise stated written or verbally, is for introduction purposes about our overseas network only as each entity is fully independent.