Author
Bowtie Team
Updated on
2025-06-13
Disclaimer: This article is translated with the assistance of AI.
When you think of VHIS, do tax deductions come to mind—or are you totally clueless? It offers way more than savings; it’s affordable, practical protection everyone needs. We chatted with VHIS expert Elaine Chan from the advisory committee to uncover how it’s revolutionizing insurance and healthcare.
How VHIS Transformed the Industry Ecosystem
The VHIS plan was officially launched on April 1, 2019, and over 2 years have passed since then. Looking back, we can see that the preparation for this plan actually took nearly 10 years. Over the past decade, the market has seen numerous controversies and discussions. Regardless of whether it received public support, this plan has indeed brought a new ecosystem to the insurance and healthcare industries.
Elaine Chan stated that the plan not only regulates the operations and product designs of insurance companies but also greatly improves the transparency of premiums and insurance documents. Any insurance company that wants to launch VHIS products must apply to the VHIS Office under the Food and Health Bureau. The product design and related documents must comply with the regulations and templates to obtain approval before being launched to the market.
In addition, with the support of the ” Private Hospital Charging Transparency Pilot Scheme ,” policyholders can budget for medical expenses and compare the coverage of VHIS or other health insurance plans. This way, they can choose the most suitable plan when subscribing or making claims.
This government initiative has certainly changed the old image of the insurance industry as “complicated in operations or terms,” “claims feeling like a lottery,” “unclear coverage,” and “relying solely on insurance agents for everything.”
The Purpose of VHIS: Establishing Basic Coverage
Furthermore, Elaine emphasized that the VHIS plan differs from traditional health insurance plans in its product design, setting multiple minimum requirements and coverage items to lay down “basic coverage” for the entire market and industry.
The Perfect Coverage Amount!
First, let’s talk about the coverage amount—some might question if VHIS’s coverage is too low. Take the most basic ” Bowtie VHIS Standard ” as an example; it’s only HK$420,000 per year. Compared to other health insurance plans on the market that start at millions or even tens of millions, HK$420,000 seems insufficient. But this view overlooks the actual needs. For one, very few people would ever use up over a million in coverage (you might need to be diagnosed with cancer three or more times to exhaust it). For another, plans with coverage in the hundreds of thousands or millions often come with high ” deductible deductible ,” which means in most cases, the insured gets little or no compensation.
Moreover, VHIS doesn’t have a “lifetime coverage limit”*, and it guarantees renewal up to age 100. That means the coverage amount is recalculated every year until the policyholder reaches 100, regardless of changes in health status. In contrast, other health insurance plans usually have a lifetime limit, so even if the coverage is high, it could eventually run out. This shows the advantage of VHIS in resetting coverage annually.
Expanding Coverage Scope
On the other hand, the coverage scope has been expanded to include the following 6 items that traditional individual or company health insurance didn’t cover.
- Pre-existing unknown conditions can be covered starting from the second year after the policy takes effect Pre-existing unknown conditions
- Congenital conditions treatment Congenital conditions treatment : For policyholders aged 8 or older, testing and treatment for congenital conditions that arise or are diagnosed are covered, just like other items.
- Day surgery: This includes procedures that don’t require hospitalization, such as those performed in clinics or day treatment centers, like endoscopy , which can be claimed.
- Diagnostic imaging tests: This covers computer tomography (CT) CT scan , magnetic resonance imaging (MRI) MRI scan , and positron emission tomography (PET) scans, whether done during hospitalization or as an outpatient. Although the policyholder has to share 30% of the costs, the remaining 70% is covered by the insurance.
- Non-surgical cancer treatments: Compensation extends to radiation therapy, chemotherapy , targeted therapy , immunotherapy , and hormone therapy.
- Psychiatric inpatient treatment in Hong Kong hospitals Psychiatric inpatient treatment
- * Some high-end protections provided by the ‘VHIS Flexi Plan’ will have a lifetime limit to control premiums.
Why VHIS Features Are Often Overlooked
VHIS offers impressive coverage limits and scope, so why do people only know it for its ‘ Tax Benefits ‘? Elaine suggests this might stem from the promotional strategies of the government, insurance companies, and insurance intermediaries.
When it comes to promotion, the government hasn’t fully highlighted all the advantages of VHIS. Instead, most ads—whether flyers, print, or TV—focus heavily on ‘tax deductions.’ Insurance companies, with their wide range of products, also haven’t promoted VHIS enough, leaving the public with only a surface-level understanding.
As for sales, Elaine shares that over the past two years, many insurance brokers have told her they’ve never sold VHIS to anyone. There are various reasons for this, but one key factor is the complexity of certain VHIS regulations, such as the clause for ‘pre-existing conditions unknown at the time of application,’ which is hard to interpret. As a result, insurance intermediaries often hesitate when pitching it.
How I’d Improve VHIS If I Could
As a member of the VHIS consultation group, Elaine doesn’t blindly endorse VHIS.
She points out that out of the 10 minimum requirements for VHIS, nine are spot-on, but if given the chance, she’d revise the one about ‘ pre-existing conditions unknown at the time of application ‘ by adding clearer definitions and explanations.
She admits this clause is vague, making many intermediaries reluctant to sell. She adds that similar clauses for ‘pre-existing conditions’ have existed in past policies—whether disclosed or not, if the insurer discovers it during the policy term, they might pay or not pay claims. In the worst case, they could even cancel the policy outright.
However, including this in VHIS has raised many issues, like how to define ‘pre-existing conditions unknown at the time of application.’ Does it require solid evidence, or can the insurer just suspect it and deny (or partially deny) the claim?
Elaine believes refining this with more precise definitions and guidelines would make the VHIS plan even better.
Having Medical Insurance Gives You Options
Throughout the interview, Elaine continuously emphasized the importance of “medical insurance.” Insuring when you’re healthy allows you to make medical choices when you’re ill. Moreover, after purchasing VHIS, the insured gains a “choice,” meaning they can select to receive treatment in public or private hospitals based on their coverage and condition.
It is evident that VHIS ‘s goal is to provide a blueprint for minimum coverage, encouraging the public to have a “useful” medical insurance.
Bowtie offers various VHIS plans, each providing different coverage, Click here to learn about the differences between the plans !
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