The Voluntary Health Insurance Scheme will be launched on April 1 to facilitate smarter consumer choice.

Secretary for Food & Health Prof Sophia Chan today kicked off the scheme at a ceremony.

The scheme is a policy initiative implemented by the Food & Health Bureau to regulate indemnity hospital insurance plans offered to individuals, with voluntary participation by insurance companies and consumers.

The first batch of 25 insurance firms participating in the scheme will provide more than 30 certified plans.

The plans have a number of standard features, including guaranteed renewal up to the age of 100 regardless of changes in the health conditions of those insured, and no lifetime benefit limit, meaning benefits will not lapse before the age of 100.

Coverage for unknown pre-existing conditions and day case surgical procedures, including endoscopy, has also been extended.

Another feature includes tax cuts of up to $8,000 for those who purchase certified plans for themselves or relatives and pay the premium on or after April 1.

Prof Chan said the average premium of a standard plan is about $4,000 a year.

“In our current system, on the one hand, we are not controlling the price of the premium.

“Through transparency there will be competition and so therefore I think the increase in the premium, while I cannot say there will not be increase in the coming years but again I think it is important to note that the insurance companies would actually think twice when they increase (premium) because there will be a lot of competition in the market.”

Prof Chan said she hopes the wide scope of coverage and the price transparency of the certified plans will attract more people to subscribe to these insurance policies and choose to use private healthcare services when in need, so as to ease the burden on public hospitals.

Information on the certified plans is available on the scheme’s website.