The Voluntary Health Insurance Scheme (VHIS) offers a variety of government-regulated healthcare coverage options and serves as one of the products eligible for tax deductions in Hong Kong. With VHIS, Hong Kong taxpayers can apply for tax deductions on eligible premiums paid. Launched in 2019, VHIS has garnered widespread attention.
According to the Health Bureau1, by September 2022, the number of VHIS policies had exceeded 1 million, reflecting a growing awareness of healthcare planning among Hong Kong residents. However, the number of individuals eligible for VHIS is much greater. If you or a loved one have yet to consider joining VHIS for various reasons, this article offers a useful overview of its fundamental concepts and considerations for making an informed choice.
Tax Savings & Protection go hand-in-hand
Grab the last opportunity! Apply for a designated tax-deductible plan by 31st March 2025, so you can apply for tax deductions for the 2024/25 taxable year2. You may enjoy individual tax savings of up to HKD 11,5603!
Understanding VHIS basics
What is VHIS?
The Voluntary Health Insurance Scheme (VHIS) is a policy initiative implemented by the Health Bureau in 2019. Its core aim is to encourage individuals to purchase healthcare insurance for enhanced protection when using private healthcare services, while also alleviating pressure on the public healthcare system. The VHIS is regulated by the VHIS office, ensuring that the certified plans comply with the minimum requirement.
Types and features of VHIS certified plans
VHIS plans are primarily divided into two types: Standard Plans and Flexi Plans. For the Standard Plan, the terms and benefits are standardised with prescribed minimum, such as minimum benefit coverage and amounts. For the Flexi Plan, they must provide basic protection equivalent to Standard Plan coverage, plus a flexible top-up protection to suit market needs subject to certain rules set out by the Health Bureau. Consumers can choose between the two plans based on their specific needs.
Key features of VHIS
VHIS mainly cover inpatient expenses, surgical fees, and pre/post-confinement outpatient care. Additionally, VHIS may offer a range of value-added services, such as medical consultation and cash allowance for hospitalisation. Importantly, taxpayers in Hong Kong can apply for a tax deduction on qualifying VHIS premiums, with a maximum deduction allowable of qualifying premiums paid of HKD 8,000 per insured person per tax year2.
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Factors to consider when choosing a VHIS plan
Selecting the right VHIS plan involves understanding the differences among plans and aligning coverage with your needs. Key factors to consider include:
1. Insurance needs and budget
Choosing between a Flexi Plan or Standard Plan depends on your insurance needs and budget. Start by evaluating factors such as health status, age, medical history, and healthcare needs. For example, young and healthy individuals may initially focus on basic coverage, but they should also be mindful of any gaps in their protection, while those with chronic conditions or family members who require frequent medical attention may benefit from more comprehensive plans. If you have elderly or young family members, a plan with higher hospital allowances and limits may be preferable, as might a Flexi Plan, though it typically comes with a higher premium.
Anticipated healthcare needs are also an important consideration. If you plan to live or work abroad in the future, consider selecting a plan with global coverage to increase flexibility for the future. Therefore, it is important to choose a plan appropriately based on your individual health needs and budget. Take AXA WiseGuard Pro Medical Insurance Plan (referred to as ‘WiseGuard Pro’) as an example, it offers four different benefit levels and three annual deductible options. Coverage includes a choice of 3 ward classes from general ward to standard private rooms, with an annual limit of up to HKD 40 million and no lifetime benefit limit. The top-tier ‘Prestige’ level even provides worldwide coverage (excluding the US)4, ensuring comprehensive care across regions.
2. Premium and coverage scope of the plan
VHIS premiums vary among insurers and are typically determined based on factors such as age and health status. When selecting a plan, it's important to compare premiums and coverage across different insurers to identify a cost-effective option.
For example, WiseGuard Pro offers full coverage5 for hospitalisation and surgical benefits, with the ‘Standard’ plan option featuring a daily premium as low as HKD 86, providing accessible yet comprehensive healthcare protection.
3. Value-added medical support services and networks
Carefully reviewing a VHIS plan’s additional medical support services and healthcare network is essential. WiseGuard Pro offers a variety of medical support services, along with access to the 'AXA Signature Network'. This includes second medical opinion services and a nurse hotline for professional advice, as well as a vast network of doctors7,8 and well-equipped healthcare facilities7,8 such as private hospitals and day surgery centres. These resources are committed to providing customers with streamlined administrative procedures and high-quality medical services. Be sure to understand these services thoroughly before purchasing to select a plan that fits your needs.
4. Reputation and service quality of the insurer
Choosing a reputable insurance company is equally important. The efficiency of claims processing and the quality of customer service provided by an insurer will directly impact your insurance experience. Review the insurer’s claims records and customer feedback to make an informed decision, ensuring they can offer timely support when needed. You may also refer to ratings by professional agencies or user review websites for a comprehensive comparison.
AXA has earned the 10Life 5-star Insurance Award – 2025 for 'VHIS' and '5-star High-End Medical Insurance' (marketing exclusive9 the only VHIS plan in the market that achieved 5-star rating of 10Life Medical Coverage for 4 consecutive years, across all three ward classes with no lifetime benefit limit), highlighting AXA’s excellence and leadership in healthcare, offering you the only 5-star medical protection experience in the market.
Looking for health protection while enjoying tax deductions?
Try our TaxBliss Calculator now and discover how 'WiseGuard Pro' can provide you with both!
Choosing a comprehensive VHIS plan
Selecting a VHIS plan requires careful consideration of various factors, including individual and family needs, premium levels and coverage, plan details and terms, and the insurer's reputation and service. Before making a decision, thoroughly assess your medical needs and budget, and compare the specific features of different insurers’ plans. Whether you choose a Standard Plan or Flexi Plan, it’s crucial to make a well-informed decision based on your personal circumstances. This guide aims to assist you and your family in finding comprehensive healthcare coverage.
Key features of AXA WiseGuard Pro Medical Insurance Plan
- Starting at HKD8/day only6
- Annual benefit limit of up to HKD40,000,000 per policy year, with no lifetime benefit limit
- Enjoy cashless arrangement at discharge with over 10,000 medical service providers around the globe10
- Full cover5 for eligible hospitalization and surgical benefits
- Flexible coverage options: 4 benefit levels and 3 levels of annual deductibles
- Full cover5 for prescribed non-surgical cancer treatments11 (including targeted therapy, and immunotherapy)
- No waiting period for unknown pre-existing conditions
- Marketing exclusive9 The only VHIS plan in the market that achieved 5-star rating of 10Life Medical Coverage for 4 consecutive years, across all three ward classes with no lifetime benefit limit
- Tax Savings – Up to HKD8,000 annual tax-deductible limit2
- Guaranteed renewal up to age 10012
1. Number of Voluntary Health Insurance Scheme policies exceeds 1 million, https://www.info.gov.hk/gia/general/202209/02/P2022090200629.htm?fontSize=1
2. For more information, please refer to www.ird.gov.hk or seek independent tax advice.
3. HKD60,000 is the maximum tax deductions per taxpayer per year for qualifying annuity premiums and MPF tax deductible voluntary contributions; while HKD8,000 is the maximum tax deductions per taxpayer per year for VHIS policy premiums for each insured person. This assumes the Hong Kong taxpayer has purchased a voluntary health insurance scheme (VHIS) certified plan and a qualified deferred annuity (QDAP), and can claim the maximum tax deduction amount. It is also based on the information on allowance published by the Inland Revenue Department (“IRD”) as of the May 2024 and is subject to change from time to time. Only the qualifying deferred annuity premiums/VHIS premiums paid in relation to the qualifying deferred annuity/VHIS payments can be tax deductible. For details on tax deductions, please refer to the product brochure and visit the website of Inland Revenue Department, or contact the Inland Revenue Department directly for any tax-related inquiries.
4. Worldwide excluding USA shall mean worldwide excluding USA. USA shall mean the United States of America and US Minor Outlying Islands.
5. Full cover shall mean no itemised benefit sub-limit and is only applicable to the reimbursement of the actual amount of eligible expenses and / or other expenses charged after deducting the remaining deductible (if any), and is subject to the annual benefit limit and other conditions as stated in the product brochure and the policy contract. Full cover applies to certain benefit items only. Further details of the terms, conditions, exclusions and limitations are provided in the policy contract.
6. Terms & conditions apply, please refer to the relevant product brochure and provisions for details. The premium shown above is based on the annual premium for AXA WiseGuard Pro Medical Insurance Plan at the "Regular" benefit level (HKD 50,000 annual deductible). Calculated for a 30-year-old non-smoking male insured residing in Hong Kong or Macau under the basic plan.
7. Network Doctors and Network healthcare facilities are independent third parties and are not agents of AXA. AXA shall not have any obligation or liability whatsoever in relation to the medical services provided by Network Doctors and Network healthcare facilities, and shall not be responsible for any act or failure to act on the part of Network Doctors and Network healthcare facilities.
8. The list of Network Doctors and Network healthcare facilities are subject to change from time to time at AXA’s sole discretion without prior notice. Hence, the Network Doctors’ number of years experience and post-fellow specialist training may vary.
9. Source: 10Life Insurance Comparison Platform. The term "market exclusive" refers to AXA WiseGuard Pro Medical Insurance Plan, which is the only VHIS plan to win the 10Life 5-Star Insurance Award for four consecutive years across all room categories (general ward, semi-private room, and standard private room). Among these, the “Regular” and “Enhance” benefit levels were rated as "5-Star Voluntary Medical Insurance" in the 10Life 5-Star Insurance Award 2024, while the "Premier" and "Noble" benefit levels were rated as "5-Star High-End Medical Insurance." Data as of 6 January 2025.
10. Only applicable to designated medical plans and benefit levels. The list of hospital service providers is subject to change from time to time.
11. Full cover of prescribed non-surgical cancer treatments is subject to the annual benefit limit, deductible (if any) and other conditions as stated in the product brochure and the policy contract. Further details of the terms, conditions, exclusions and limitations are provided in the policy contract.
12. Subject to the terms and benefits of the policy contract, you have a guaranteed right to renew the policy by making payment of the prevailing premium on each policy anniversary.
AXA WiseGuard Pro Medical Insurance Plan is underwritten by AXA China Region Insurance Company (Bermuda) Limited (Incorporated in Bermuda with limited liability) (“AXA”, the “Company”, or “we”). The plan is subject to the terms, conditions and exclusions of the relevant policy contract. AXA reserves the final right to approve any application. This webpage contains general information only and does not constitute any contract between any parties and AXA. It is not a policy. For detailed terms, conditions and exclusions of the plan, please refer to the relevant policy provisions, which will be made available by the Company upon request and can be downloaded from this website.
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