What is the Voluntary Health Insurance Scheme (VHIS)?

After years of investigations into effective solutions of inadequate resources allocated to the public healthcare system, the Food and Health Bureau (“FHB”) finally rolled out the Voluntary Health Insurance Scheme (“VHIS”) in early April 2019.

Two great news about this newly launched scheme – first thing off, it is not mandatory, you have total freedom to make your own purchase decision. More importantly, a tax deduction of HKD$8,000 will be offered to each individual who is insured by qualifying insurance products under VHIS.

If you are interested in learning more about the entitled health insurance policy, here’s everything you need to know!

Details of Voluntary Health Insurance Scheme (VHIS)

The scheme comprises “Standard Plan” and “Flexi Plan”, Hong Kong residents aged from 15 days to 80 years old are all eligible to apply. As long as the policyholders are satisfied with the plans, it is guaranteed that they will be able to renew the insurance up to age 100.

As the first authorized virtual insurance company in Hong Kong, Bowtie brings you the most affordable and simple pure certified VHIS plans. With less than $200*, you can get yourself an annual limit up to HK$420,000, covering hospitalization expenses, surgery and doctor’s fees. Not to mention Bowtie might provide the successfully enrolled with BowtieCash^ which can be used to pay for medical costs that exceed coverage. Get your quote now: https://www.bowtie.com.hk/en#quote-Now

*Monthly premium of Flexi Plan for non-smoking male aged 25 is $181 while monthly premium of Standard Plan for non-smoking male aged 25 is $109.

Bowtie VHIS Flexi Plan:https://www.bowtie.com.hk/en/insurance/vhis/flexi
Bowtie VHIS Standard Plan:https://www.bowtie.com.hk/en/insurance/vhis/standard

^BowtieCash Rewards – can be used to cover any eligible medical expenses exceeding the benefit and coverage limit of Bowtie VHIS. Terms and conditions apply. Please refer to the Campaign Rules.

Premium is available for tax deduction?

According to the FHB, not only can the policyholders claim a tax deduction on qualifying premiums up to HK$8,000, they can also make deduction claims for more than one insured person without any limitation on the numbers of insured people or policies.

You may not be able to save a lot if you only enroll VHIS for yourself, but if you enroll for 5 other family members, it will be a different story. For instance, let’s assume you had purchased VHIS policies and paid a qualifying premium for yourself, your spouse, your 2 adorable kids and your parents in the amounts of $6,000, $5,500, $3,000 and $18,000 respectively, you can save up to HK$4,575!

Be reminded to keep the premium receipts or the annual premium statement issued by your VHIS Providers given that the Inland Revenue Department demands the taxpayer to provide supporting documents