New | Insurance companies unveil tax-deductible health insurance in trial programme

A dozen insurance companies have unveiled tax-deductible, health insurance schemes on the mainland in a trial programme that China hopes can spur commercial medical coverage.

They come with tax incentives and are aimed to complement social insurance schemes.

Still, initial market feedback hasn’t matched the splash made when the idea was unveiled by policymakers. That’s despite the rush by insurers to launch new products. The hurdles they face include a small deduction quota, reluctant employers, limited pilot schemes and a complex buying procedure for clients, market watchers said.

This year, taxpayers in 31 major cities, including Shanghai, Beijing, Tianjin, Chongqing and one large city in each of the provinces and one autonomous region can deduct up to 2,400 yuan (HK$2,856) annually, or 200 yuan each month, on their taxable income if they pay the money for designated “tax-preferential health insurance products” allowed by the China Insurance Regulatory Commission (CIRC).

So far 12 insurers including PICC Health Insurance, Sunshine Life Insurance, Taikang Pension, China Life Insurance, Ping An Life Insurance and China Pacific Life Insurance have obtained the go-ahead from the top insurance regulator to run the trial business.

The policies will offer additional coverage beyond that provided by the current medical fund, with yearly coverage of at least 200,000 yuan.