Everything You Need To Know About VHIS
Everything about VHIS (Voluntary Health Insurance Scheme) in HK: VHIS benefits, plans, tax deductions, exclusions & expert tips.
Reviewed by a licensed advisor
What is VHIS (Voluntary Health Insurance Scheme) in Hong Kong?
After 20 years of discussion, the Voluntary Health Insurance Scheme (VHIS) was finally launched by the Hong Kong Government at the beginning of April 2019. The VHIS is an initiative of the Hong Kong Food and Health Bureau (FHB) which aims at regulating hospital insurance plans for individuals. The scheme is completely voluntary both for consumers and insurance companies.
Under the VHIS, participating insurance companies offer "Certified Plans" with pre-established minimum requirements.
What is the goal of the VHIS initiative?
The main goal of the VHIS is to direct people towards the private healthcare system in order to declutter public hospitals. Because of high prices in the private sector, Hongkongers tend to go in the public sector, creating extremely high waiting times. By offering affordable hospital insurance, the government wants to incentivize more people to go private.
What are the Certified Plans offered by the VHIS?
There are two types of Certified Plans:
(1) Standard Plans: The Standard Plans offer standardized terms and benefits that are detailed below. These plans provide basic hospital protection with minimum benefit amounts and coverage.
(2) Flexi Plans: While Flexi Plans offer the same guarantees as Standard Plans, they also provide flexible top-up coverage options. These plans may differ a lot from one insurance company to another.
What are the benefits of VHIS plans?
The following minimum requirements must appear in all Certified Plans (Standard and Flexi Plans):
➜ Standardized policy terms and conditions with minimum benefit coverage and benefit amounts.
You can check out the "Certified policy template" here.
➜ Renewable until a 100 years old, irrespective of your health condition.
➜ No "lifetime benefit limit":
You will be covered the same way until you reach 100 years of age.
➜ 21 days-cooling-off period:
Period of time during which the consumer can cancel the policy while having the paid premium fully refunded.
➜ Premium transparency:
All insurance companies must provide their Certified Plans’ premiums. You can access public premiums on the VHIS website.
➜ Coverage extension includes:
Unknown pre-existing conditions:
Full coverage of pre-existing conditions within 4 years seniority:
1st year: 0% coverage
2nd year: 25% coverage
3rd year: 50% coverage
4th year and after: 100% coverage
Congenital conditions:
With the same scheme as pre-existing conditions, congenital conditions will be fully covered when they have been diagnosed or have manifested since the age of 8.
Coverage of day-case procedures:
Procedures such as endoscopy are covered if not conducted during a hospital stay.
Diagnostic imaging tests:
If prescribed, CT scans, MRIs and PET scans are covered. However, the coverage is subjected to a 30% co-insurance.
Non-surgical cancer treatments:
Prescribed radiotherapy, targeted therapy, chemotherapy, hormonal therapy and immunotherapy will be covered.
Psychiatric inpatient treatments in Hong Kong's hospitals:
They will be covered with a HK$ 30,000 limit per policy year.
What about VHIS tax deductibility?
Hong Kong residents may claim tax deduction for premiums paid under Certified Plans up to a maximum of HK$ 8,000 per insured person and tax year. You are eligible if:
You or your spouse are a personal income taxpayer.
You or your spouse are a VHIS policyholder.
The insured person can be you or a specified relative: your spouse, your children, and your or your spouse's parents, grandparents and siblings. The HK$8,000 cap applies per insured person, and there is no limit on the number of insured persons.
How much tax can you save with VHIS?
The deduction is the premium you actually paid, up to HK$8,000 per insured person each year. If the premium is lower than HK$8,000, you deduct the premium itself. The tax you save depends on your tax rate:
Your tax rate | Maximum tax saved per insured person, per year |
|---|---|
2% (first progressive band) | HK$160 |
6% | HK$480 |
10% | HK$800 |
14% | HK$1,120 |
15% (standard rate) | HK$1,200 |
17% (top progressive rate) | HK$1,360 |
Example: you buy a Certified Plan for yourself, your spouse and your two children, and each premium is above HK$8,000. Your family can deduct up to HK$32,000 a year. At the 17% progressive rate, that is up to HK$5,440 less tax every year.
Claim the premiums in your individual tax return and keep the premium receipts or the annual premium statement from your insurer. Only premiums paid for Certified Plans qualify; other medical insurance does not. Source: VHIS official website.
How much does VHIS cost?
Insurers set their own VHIS premiums. The government does not regulate them, but every insurer must publish the premium table of its Certified Plans. Researchers at the University of Hong Kong analysed all 7,184 premiums of the 31 Standard Plans on sale in 2024. Here is what a Standard Plan costs per year (the study reports US dollars; Hong Kong dollar figures are converted at 7.8 and rounded):
Age | Median annual premium | Cheapest to most expensive plan |
|---|---|---|
Under 30 | about HK$2,000 (US$253) | about HK$1,000 to HK$5,300 |
30 to 40 | about HK$2,900 (US$378) | about HK$1,500 to HK$6,600 |
40 to 50 | about HK$4,300 (US$552) | about HK$2,200 to HK$9,300 |
50 to 60 | about HK$6,600 (US$849) | about HK$3,400 to HK$15,400 |
60 to 70 | about HK$10,400 (US$1,334) | about HK$5,500 to HK$30,300 |
70 to 80 | about HK$16,000 (US$2,047) | about HK$8,800 to HK$35,800 |
Three things stand out:
The insurer matters as much as the plan. At 40 to 50, the most expensive Standard Plan costs about 4 times the cheapest, for the same standardised cover. With Standard Plans, comparing premiums is the first thing to do.
Age drives the price. The average premium at 70 to 80 is 7.7 times the average under 30. Below 50, the median Standard Plan premium is under the HK$8,000 cap, so the whole premium is tax deductible.
Smokers pay about 30% more on average, although only 6 insurers price smoking separately.
Flexi Plans add higher limits and extra benefits on top of the Standard Plan, so they generally cost more, and their prices vary more. The table above covers Standard Plans only. Source: HKU School of Public Health (2025).
Which VHIS plan is best? 6 things to compare
No VHIS plan is best for everyone. In 2024 there were 94 Certified Plans on the market (31 Standard and 63 Flexi). Compare them in this order:
Standard or Flexi. Standard Plans share the same terms, so the premium is the main difference. Flexi Plans can add higher limits, full cover, outpatient or worldwide benefits, and need a line-by-line comparison.
Premium at your age. Start with the premium for your age group. For the same cover, the most expensive plan can cost 4 times the cheapest.
Deductible. Some Flexi Plans let you choose a deductible. A higher deductible lowers the premium, which suits people who already have company medical cover.
Limits and full cover. Standard Plans pay up to a limit per benefit. If you want to pay less out of pocket, look at Flexi Plans with full cover.
Hospitals and doctors. Standard Plans let you choose any hospital and doctor, but some Flexi add-ons only work within a network.
Premiums on renewal. Premiums are not fixed: they change with your age and with the insurer's adjustments at each renewal.
Alea is a licensed insurance broker in Hong Kong (licence FB1417) working with 50+ insurers. We compare Standard and Flexi Plans for you, free of charge. Compare VHIS plans and get a free quote.
Who can be covered by a VHIS plan?
Certified Plans cover individuals and their families. You can apply for your child as early as 15 days after birth and you are eligible until 80 years old. It cannot be purchased by companies for their employees.
**➜EXPERT TIP: Non-Hong Kong residents may apply for Certified Plans but they will not be eligible for tax deduction. However, eligibility criteria may differ from one insurance company to another.
Choice of doctors and hospitals under VHIS plans:
You have free choice of hospitals and doctors under both Standard Plans and Flexi Plans; and you may even choose to go to public providers.
➜ EXPERT TIP: Beware that some Flexi Plan top-up benefits may provide a restricted network of hospitals and doctors as in any other insurance policy.
What is excluded from VHIS plans?
VHIS does not provide coverage for outpatient services or non-indemnity medical insurance protection such as Critical Illness cash plans or Hospital Cash.
➜ EXPERT TIP: For instance GP consultations, physiotherapy sessions, dental treatments will not be covered. As VHIS plans do not provide comprehensive coverage, you may want to seek expert advice regarding your needs and personal situation.
Is it possible to transfer to a VHIS plan if you already have health insurance coverage?
It is possible if your insurance company is among the VHIS participants, but transfer arrangements may differ from one company to another.
Should you get a VHIS plan?
VHIS are affordable plans that provide basic coverage for hospitalizations, day-case procedures, diagnostic imaging testing and non-surgical cancer treatments. If you want comprehensive, robust medical coverage then VHIS plans may not be for you, given their relatively low limits and outpatient exclusions.
For instance in Hong Kong, a coronary angioplasty costs an average of HK$ 150,700. Under a VHIS Standard Plan, you are covered 35% of the costs only and have to pay an outstanding amount of HK$ 97,630 out of pocket.
Who can buy VHIS?
Under the VHIS scheme, all products must consider applicants from the age of 15 days to 80 years old. You may apply for VHIS for yourself, your partner, parents, siblings, children or even your partner's grandparents. However, employers cannot purchase it for their employees.
How is VHIS different from other individual health insurance?
Certified VHIS products must fulfilll the minimum requirements of the Food and Health Bureau and strictly follow relevant guidelines. With a relatively low premium, VHIS provides coverage for up to 100 years of age but only for inpatient or related care (except with top-up benefits). It also comes with tax deductibility, which is not applicable to other insurance products on the market.
Can I use overseas medical service?
Yes. Standard Plans and the basic components of Flexi Plans must provide global coverage (except for psychiatric care, which must be carried out in Hong Kong). Some top-up benefits of Flexi Plans, however, may only be applicable in specified regions.
Written by
Julien Mathieu
Co-Founder & CEO | Official CFE Representative
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