International Law

Expat Health Insurance In China. Part II.

By Dan

Earlier this year, I did a really short piece on "Expat Health Insurance in China." Based on the comments and emails, that post was helpful to a number of people, and yet a number of additional people were requesting an update and more information.

When I came across Tony Noto's recent article on expat health insurance, entitled, "Health Insurance for 'Halfpats,'" I contacted him to ask if we might run it here with a supplement listing specific sources of health insurance for China's expats. Tony is a a Shanghai based financial planner serving expatriates in China and since financial planning includes health insurance....

Tony's article starts out noting how the "increasing number of expats signing up for local or ‘halfpat' packages that do not include international health insurance" means more people who need to get that insurance on their own. He goes on to note that because Chinese hospitals typically require payment for treatment, "adequate health insurance is a must."

Tony talks of how travel insurance is not a good substitute for real health insurance because travel insurance "usually carries lower benefit limits, and/or restricts how long you can maintain coverage. Time restriction are particularly dangerous, as the insurance company effectively pushes the risk of paying for any long term medical care back to you."

Tony gives three money saving tips to consider when buying health insurance: tips to consider:

In-patient only – This is the type of coverage everyone needs at a minimum. In-patient generally refers to coverage for emergency hospitalization, but does not cover out-patient care (for example visits to a doctor's office or clinic for a checkup).

Geographical Restrictions – Due to the high cost of healthcare in the US, health plans that exclude coverage in the US can offer significant savings. This type of plan could be risky, however, if you have plans to move to the US since any conditions you develop could cause problems when trying to switch to a US health plan. Another issue is that some of these plans will not cover emergency care in the US while visiting, which means you would need travel insurance if you go.

Increase your deductible – A higher deductible plan could significantly decrease your premiums compared to a low or no deductible policy. This means that you pay less on monthly premiums, but more out of your own pocket if you need medical care. Limit your maximum out-of-pocket to something you can afford, and have the insurance company cover everything beyond that amount.

Tony says that Pacific Prime and Shanghai SP Insurance Brokers are two China-based brokers he knows to have experience selling expat/half-pat policies. You can also contact insurance companies directly, such as the following: 

• AXA-Minmetals
• BUPA
• Chartis
• Goodhealth

The above lists are not complete and you can find more insurance companies and brokers selling health insurance to expats in China at NextStepDirectory.com. According to Tony, "prices are typically the same whether you obtain coverage directly from the insurer or go through an insurance broker."

Who do you use? 

Full post as published by China Law Blog on October 14, 2010 (boomark / email).