The success or failure of the latest plan to reform health care financing hinges on a simple question: can a voluntary medical insurance scheme give patients a better deal? Translated, that means lower premiums, better coverage and cheaper medical services.
Health officials are confident that the plan can fix certain 'market failures' and increase patients' bargaining power by putting them into a bigger risk-sharing pool, but private doctors say the effect could be limited and even dangerous.
The government is conducting a three-month public consultation on the controversial voluntary Health Protection Scheme, as it is called.
It aims to cover 300,000 to 500,000 people, and provides a 'standard plan' for hospital services. Unlike most existing insurance policies that exclude high-risk patients, the government-regulated scheme will provide guaranteed renewal for life, and inclusion of people with pre-existing conditions. To increase market competition, policies are portable between insurers and employers.
The scheme will provide coverage of fixed price 'packaged services' at private hospitals so patients are more certain about the prices and procedures covered.
Undersecretary for food and health Professor Gabriel Leung said the government was confident the scheme could lower medical fees and keep premiums under control.