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The Government today (October 6) published the second stage public consultation document on healthcare reform, under which a government-regulated, voluntary Health Protection Scheme (HPS) - aimed at enhancing the long-term sustainability of the healthcare system - is proposed for public consultation for three months until January 7, 2011.
Speaking at a press conference today to release the consultation document entitled "My Health My Choice", the Secretary for Food and Health, Dr York Chow, said: "The first stage consultation held in 2008 clearly reflected that there was a general recognition on the need for healthcare reform. On healthcare financing, a greater proportion of the public expressed reservations about mandatory financing options. They preferred voluntary choice for personalised healthcare services, and expected more choices of private healthcare services according to their own means and needs, as an alternative to public healthcare services. Voluntary private health insurance was acceptable to many of them."
"The HPS was drawn up having regard to the community's views revealed to us through the first stage public consultation. Premised on 'voluntary participation' and 'government regulation', it responds to the public's call for voluntary choices, and seeks to enhance transparency and healthy competition within the private health insurance and healthcare markets as well as safeguard consumer protection through appropriate Government regulation to address their existing shortcomings. The ultimate purpose is to provide better and more choices for those who choose private services," he continued.
Given its voluntary nature, the HPS could not on its own completely resolve the problem of long-term healthcare financing. Yet, the scheme can strengthen the protection for those who have subscribed to health insurance (totalling more than two million as of now). This will have a positive effect on enhancing the sustainability of private healthcare financing and the development of private healthcare services, thus relieving the burden on the public healthcare sector in the long run and benefiting those who need public services.
Dr Chow stressed that the Government will only increase, and not reduce, its commitment to healthcare when taking forward the HPS. The Government will continue to uphold public healthcare services as the community's healthcare safety net. He said: "The Government is increasing its funding for healthcare, from $30.5 billion in 2007-08 to $36.9 billion in 2010-11. Over $5 billion was committed to take forward various healthcare services reforms. These include enhancing primary care services; launching public-private partnership projects in healthcare one after another; sharing electronic health record under the first stage of the programme to be implemented in 2013-14; and strengthening public healthcare safety net and expanding the coverage of the Drug Formulary. The Government also invests in healthcare infrastructure and equipment and strengthens safety net with a total commitment of over $15 billion."
There are 10 key features of the HPS as follows:
* No turn-away of subscribers and guaranteed renewal for life;
* Age-banded premiums subject to adjustment guidelines;
* Covering pre-existing medical conditions subject to waiting period;
* High-risk individuals insurable with a cap on premium loading;
* Risks arising from accepting high-risk groups to be shared out through High-Risk Pool industry reinsurance;
* No-claim discount for premiums;
* Insurance plans renewable on leaving employment and portable between insurers;
* Insurers required to report all costs, claims and expenses;
* Standardised health insurance policy terms and definitions; and
* Establishment of a Government-regulated health insurance claims arbitration mechanism.
Another key feature of the HPS is to promote medical fees with packaged charging for common procedures to enhance the transparency of charging. The Government will encourage and assist private hospitals to offer quality-assured, all-inclusive and condition-specific packaged service and pricing.
"The Government has pledged to draw $50 billion from the fiscal reserve to support healthcare reform. To encourage participation in the HPS, we will consider making use of the $50 billion to provide incentives, such as subsidising and enabling high-risk individuals to get insured, to buffer the excess risk arising from the participation of high-risk individuals; attracting new joiners (especially the young) into the Scheme and incentivising savings for paying premiums at an older age," he said.
Implementation of HPS would require corresponding expansion in the capacity of the private healthcare sector to cope with the potential increase in demand, and there would be a positive effect on the long term development of the healthcare sector. Dr Chow pointed out that the Government would closely monitor the demand for private healthcare service and would consider ways to increase its capacity as necessary.
"The known redevelopment projects of existing private hospitals and the development of new private hospitals under planning should be able to meet the projected demand for private healthcare services arising from the HPS. We are also conducting manpower exercise for the various healthcare professions for the purpose of assessing the education and training needs for healthcare professionals. The exercise will take into account the potential demands for manpower increase and the potential increase in demand for private healthcare services arising from the implementation of the HPS," Dr Chow added.
Dr Chow called on members of the public to express their views on the proposals in the document. He said: "Our healthcare system is important for each and every one of us. We are committed to continuing to engage the community and take forward healthcare reform through a step-by-step approach. Through this consultation, we hope the public will engage fully in the discussion. We need the public's views so that we would take forward healthcare reform and fine tune the design of the Scheme."
Copies of the consultation document "My Health My Choice" and related information can be downloaded from the Healthcare Reform Second Stage Public Consultation website (www.MyHealthMyChoice.gov.hk) and are available for collection later this week at district offices, public hospitals and clinics.
The deadline for submission is January 7, 2011. The public can send their views on this consultation document to the Food and Health Bureau by mail to 19/F, Murray Building, Garden Road, Central; by facsimile to (852) 2102 2525; or by email to mychoice@fhb.gov.hk.
Ends/Wednesday, October 6, 2010
Issued at HKT 16:00
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