TWO SCHEMES WITH TAX-DEDUCTIBLE PAYMENTS PROVIDE COVER FOR PATIENTS SUFFERING

Medisage: The long-term savings account Hong Kong residents could contribute to an individual savings account called Medisage for purchasing long-term care insurance. The funds in the account would belong to the individual and could only be used to purchase a long-term care insurance policy upon retirement or disability.

It would be compulsory for individuals to buy the insurance once they reached 65. With all elderly residents buying insurance at that age, the insurance risks could be spread widely and premiums kept down.

Contributions to Medisage are suggested to be 1 per cent of wages, shared jointly by the employee and employer. Contributions could be tax deductible.

Collection of the contributions would be contracted to the Mandatory Provident Fund. The long-term medical insurance would be provided in a competitive market by private insurance companies.

Health Security Plan The Health Security Plan (HSP) would cover in-patient hospital services and out-patient services for certain serious chronic diseases, such as cancer, diabetes and strokes. Dependents, including parents, could be included in the plan.

Patients would be free to choose their health service providers and the administrative Health Security Fund would pay a standard fee for the services to all providers. Private providers would be able to charge higher rates, up to a certain capped level, with the patient making up the balance.