Hong Kong workers doubt employer medical cover meets costs

Only 17% have bought additional top-up protection.

Most working people in Hong Kong rely on their employer's group medical insurance but do not believe it covers their actual medical costs, according to a new survey by FWD Hong Kong.

The insurer's "Hong Kong Working Population Medical Protection Survey" found that 71% of respondents with employer-provided group medical insurance said they mainly depend on this cover, yet only 29% believe it is sufficient to meet their actual medical expenses. 

Just 17%, or roughly one in six, have bought additional top-up plans to cover the shortfall. 

The survey also found that 74% of respondents are concerned about having to bear high medical costs alone after retirement.

FWD commissioned the survey of more than 1,100 working individuals in Hong Kong aged between 25 and 65, conducted between June and July this year. 

It found that 64% of respondents said they would prioritise using their company's group medical insurance when making claims. As this cover is generally tied to employment, it lapses when someone changes jobs, leaves work or retires. 

Amongst group scheme members who have bought individual medical insurance with a deductible to boost their cover, 51% said they would not be confident bearing that deductible alone if they lost their group cover.

More than 70% of respondents said they worry about bearing high medical costs alone after retirement (74%), premiums rising as they age (74%), and medical inflation pushing up healthcare costs (73%). 

A further 68% are concerned that applying for insurance later in life would involve complicated underwriting or even rejection.

Kelvin Yu, chief proposition and healthcare officer at FWD Hong Kong & Macau, said the working population generally relies on employer-provided group medical insurance, but that this cover may not be enough to meet actual medical costs for individuals and their families. 

He said protection gaps can widen as people change jobs, leave employment or retire, amidst rising healthcare costs.

In response, FWD has launched the "EBeyond Medical Insurance Solution", aimed at members of eligible group medical inpatient insurance schemes. 

The product allows members to top up their protection beyond their existing company cover by answering two health questions, whilst existing members of FWD's own group schemes can apply without health underwriting.

EBeyond offers two plan options. The EBoost Plan is designed as a top-up to existing group cover during employment, providing full coverage for major hospitalisation and surgical expenses, subject to the annual benefit limit, deductible and reimbursement percentage. 

The EBridge Plan is intended as first-line protection for those who lose group cover after changing jobs or retiring, offering four plan levels covering different ward classes, with an optional supplementary major medical benefit available on selected levels.