The first common misunderstanding among expatriates is that their private health insurance or social security from home will provide the same coverage wherever they are, including overseas. Unfortunately this usually isn’t the case. For many of those who have been contributing to a health fund regularly for many years or are used to comprehensive government Medicare, it can come as a shock to find out that you’re not covered overseas for a single cent.

The second common misunderstanding is that young and healthy expatriates often think that international health insurance premiums are too expensive, therefore it’s better to take the risk and save money by not being covered. A proper (read: international) medical insurance in China usually costs between 10,000 to 20,000 RMB per year, and these policies usually provide full coverage with few restrictions. If you think this is expensive though, you probably need to become more familiar with what kind of medical expenses you’d be contemplating should events take a less fortunate turn - Here we’ve compiled some examples of scenarios where medical or evacuation costs in China can reach very high amounts, based on our real claims experiences in the past:

All of the following illustrative conditions are treated in a Tier-3 public hospital (VIP Room with English speaking service) in Shanghai:

For those who live in Shanghai or Beijing, there is also the option of going to foreign-owned clinics for outpatient treatment, and treatment there is usually 4 to 5 times more expensive than at a Tier-3 public hospital VIP Room. International medical insurance will usually cover this too, so which system you use is your choice.

The third common misunderstanding among expatriates who purchase medical insurance is that all medical insurance includes cover for emergency evacuation. Emergency evacuation can be defined as the costs of transportation (including by helicopter or Medivac) to the nearest possible facility where adequate medical treatment can be provided. As the fifth example above demonstrates, emergency evacuation could be necessary in circumstances where most expatriates aren’t aware there is actually a need for such cover. Many international medical insurance policies will include cover for repatriation, which is a good thing, however this cannot be confused with cover for emergency evacuation – a far more important benefit which is much more likely to be required, especially for expatriates living and traveling in China. In China, only a few cities along the east coast, namely Shanghai, Beijing and Hong Kong, have adequate medical facilities and adequately trained doctors to treat more severe medical conditions. Anyone residing or traveling to other parts of the country would most likely need to be evacuated to one of these large cities if any serious accident or illness were to occur. And these kinds of costs can only be covered by an Emergency Evacuation benefit, not by a Repatriation benefit. All of our Plans include Emergency Evacuation and Repatriation as standard.

So, in summary, medical insurance is one of those things that expats shouldn’t go without. Give us a call and speak to one of our professional advisors to get a free quote.

Another consideration when purchasing Medical Insurance in China:
Direct Billing

Some high-end medical insurance plans will offer clients the option of direct billing, which is a service the insurance company sets up with selected clinics and hospitals which they think would be used frequently by their clients. Direct billing just means that you don’t need to pay cash and then make claims each time you see the doctor or do other basic outpatient procedures, so it’s a useful service add-on and definitely worth considering when you purchase medical insurance. Different insurance companies will have different sized networks, although many insurance companies won’t have networks so they’ll expect clients to pay cash and then claim each time. Of those that offer direct billing, some insurers will charge an additional service fee for access, but direct billing access to our network is free. Generally, the offshore medical insurance companies don’t have very broad or established direct billing networks in China, meaning that for the convenience of direct billing, you might have to put up with inconvenience of a long journey just to get to their partner clinic.

We, on the other hand, don’t have that problem. We have direct billing arrangements with over 40 clinics and hospitals in Shanghai, and similarly large networks in the other major cities around China. Our network is broad enough to give you access to both foreign owned clinics and the VIP wards at Tier-3 government hospitals. Both systems provide Western standards of medical care and have English-speaking staff so there are no communication problems. Because our claims team is based locally, we get regular feedback on the quality of care at our partner clinics and hospitals, and make adjustments to the network whenever necessary. For someone who’s not from this country, finding out where to go for certain types of treatment can be difficult, but our website is a good place to start – it offers basic info, including what services are provided, location and contact details for all of the major public and private clinics and hospitals in the major cities. Also feel free to ask your local insurance advisor – drop us a line or leave your number and we’ll give you a call back.