Tips on comparing health insurance plans in China

In the past couple of decades the number of insurers in China has increased from but a handful to over 100, a market which is predicted to do nothing but grow in the near future. This is a great thing for many consumers as many of these insurers offer a wide variety of insurance products, with a large number focusing just on health related insurance products. The one downside to this is that not all plans are created equally and when you start to compare health insurance plans in China it quickly becomes apparent that there is a vast difference in the quality of plans available. This makes it hard for many of us to actually find a plan that best meets our needs.

To help make this process a little easier, Pacific Prime has recently released a new infographic. This infographic, available for free from our website, covers the three most important things you should keep in mind when looking for a new health insurance plan.

Here, we take a look at the three elements and how they can help you wade through the huge number of plans available, to find the best plan for you.

Element 1: The price

When many people start looking for health insurance, the price is arguably the single most important thing they will consider. After all, if a plan is out of your budget then you likely won’t be considering it, no matter how good it is. The thing here is that when considering international health insurance plans you may be shocked at how much they can cost.

With high limits and international coverage, this type of health insurance plan is designed to help cover the cost of care at not only the best private facilities in China, but also abroad. Simply put, they allow you to pick which hospital you want to receive care at. The thing is, many of these facilities are expensive (some hospital visits can cost upwards of USD 100,000)  and the cost of health care is increasing, so premiums will be higher for these types of plans.

While the price you pay to secure this type of insurance may be higher, it does offset the high cost of care and makes them completely worth it for many living in China. That said, the premiums for these types of plans will vary considerably especially if you use an online health insurance comparison tools like the one available on Pacific Prime China’s website.

Take for example, the below screenshot of the plan premiums our online comparison tool prepared for a 30-year-old female living in China:

As you can see, the premiums cover quite a range with the lowest being RMB 522/month and the highest being RMB 1,516. This is just the first 9 results of close to 300 plans available to consider. The question is, why is this range so high? There are two main reasons behind this:

• Some plans are quotes with deductibles – This is the amount you will need to pay before medical coverage will kick in.
• Some plans will offer different levels of coverage – Plans are designed to often cover different types of care and with different limits. Generally speaking, plans with higher premiums will cover more.   

When looking at plans online, it is important to look at a number of elements aside from just the price. For instance, the plans in the image above have different levels of coverage and some even have deductibles. This will change the overall premium you pay, and the good news is that you can usually play around with the level of coverage offered.

It is also important to note here that it would be a good idea to determine your level of risk aversion when considering plans. What we mean by this is try to think about how much you are willing to pay each year or each doctor’s visit before your insurance will cover the rest (the deductible). If you are financially stable and feel that you won’t visit a doctor on a regular basis then a higher deductible could be considered, as it will reduce your overall premium.

On the other hand, if you are considering visiting a doctor on a regular basis then a high deductible may not be the be right decision financially.

Element 2: The level of cover

Insurers in China offer health insurance plans with three major levels of cover:

• Inpatient only – These plans will only cover medical care where you are admitted to a hospital by a doctor, usually for more than 24 hours.
• Inpatient + outpatient – These plans add on outpatient cover which includes care at clinics and care where you are not admitted to the hospital.
• Inpatient + outpatient + maternity – Covers both of the above as well as maternity. Many insurers will refer to this level of coverage as “full-cover”

Of course, as you look around you will notice that some plans will vary from the levels of coverage above. For example, some may offer dental or optical coverage instead of maternity, etc. Generally speaking, however, these extra benefits (e.g., dental, optical, wellbeing, etc.) will be considered as add-ons meaning you can certainly add them to your plan, but will need to pay an extra premium if you want them to be covered.

What we suggest when looking at different plans is to add and remove levels of coverage e.g., outpatient, dental, vision, etc. This can give you a good idea of how much you can expect to pay if you want to secure a plan. Bear in mind here that the more coverage elements you add on, the higher your premium will be.

Element 3: How you will use your plan  

The final element to consider when comparing health insurance plans in China is how you plan to use your insurance plan. In some cases, you may have a pre-existing condition or will require extensive medical care. If this is the case for you, it would be advisable to keep this in mind when comparing plans. The reason being that some plans will not cover pre-existing conditions, others may deny coverage completely, while others yet may add what’s called a loading (an extra premium you need to pay for your condition to be covered).

You will need to discuss this with your broker or the insurer before purchasing a plan, as this could drastically change the level and type of coverage you secure.

Beyond that, it is important to note that the service level offered by insurers varies drastically. What we mean by this is that when it comes to things like paying claims, submitting information, securing the plan, disputes, etc. you will find that insurers vary in quality. Some will pay claim reimbursements within days, others may take months and followups. This can be annoying for some, especially if you secure a reimbursement plan where you need to pay for care out-of-pocket and then submit a claim.

One way to not only uncover the best health insurance plan in China is to talk with Pacific Prime China. Our team has an in-depth understanding of the market in China and uses tools like our free infographic to help you identify a plan that not only meets your budget but also offers the level of coverage you require.

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.