Bowtie Offers VHIS Free Upgrade Even When Medical Inflation Hits 15-years High

HONG KONG SAR - Media OutReach - 13 February 2023 - As the global medical inflation continues to rise, most medical insurance plans have increased their premiums in order to cope with the rising costs. Bowtie, Hong Kong's first virtual insurance company, is devoted to reducing costs with technology. Throughout the past 3 years, Bowtie has been offering free upgrades on its VHIS coverage, allowing HongKongers to enjoy more comprehensive medical protection at a more affordable premium.

Hong Kong Medical Inflation Rate Reaches 8.8%

According to the 2023 Global Medical Trends Survey by WTW, a multinational insurance consulting company, the global inflation and pandemic have led to a surge in healthcare usage, pushing the global medical costs to a nearly 15-years high.

It is estimated that the global average medical inflation rate will rise from 8.8% in 2022 to almost 10% in 2023, and during the same period, Hong Kong's medical inflation rate will rise from 8.2% to 8.8%.

	2021	2022	2023
Global	8.2%	8.8%	10%
Hong Kong	7.5%	8.2%	8.8%

Source: Global Medical Trends Survey by WTW

Bowtie Offers Upgraded Coverage Instead of a Raise

Medical inflation will inevitably make the public bear burdens while leading to higher operating costs for insurers as they have to pay out more for medical treatment. However, Bowtie, as the first virtual insurance company in Hong Kong, is committed to providing better protection at the best possible premium via reducing unnecessary costs through technology.

Instead of increasing its voluntary medical insurance premiums, Bowtie has continued to provide a series of free coverage upgrades over the past 3 years, despite the recent inflationary spike. Bowtie VHIS Flexi Regular and VHIS Flexi Plus have upgraded 7 benefits, mostly around 4 areas. For example, surgeon's Fee, anesthetist's fee and operating theatre fees were increased by 20% to reduce out-of-pocket expenses, room and board and miscellaneous charges were enhanced 5-29% to reduce customer shortfalls, and the pre- and post-confinement outpatient care coverage was increased by 18-55%. All customers shall enjoy extra medical coverage at the same premium.

Bowtie Launched 5 VHIS Plans to Offer "Just-Fit" Protection

Bowtie offers a variety of plans under the Voluntary Health Insurance Scheme, including VHIS Standard Plan, VHIS Flexi (Regular), VHIS Flexi (Plus), Pink (Semi-private Room) and Pink (Private Room), policyholders can choose the most suitable VHIS plan according to their own budget and needs.

	VHIS Standard	VHIS Flexi (Regular)	VHIS Flexi (Plus)	Pink (Semi-private)	Pink (Private)
Monthly Premium¹	HK$123	HK$200	HK$356	HK$257	HK$480
Insurance Amount	HK$420,000/ year	HK$600,000/ year	HK$1 million/ year	HK$10 million/ year
Lifetime Coverage Limit	No lifetime coverage limit			HK$50 million/ lifetime
Additional Medical Coverage	No additional medical insurance	HK$120,000²/ year, 11 additional protection items	HK$220,000²/ year, 11 additional protection items	Not applicable
Deductible	No deductible option			HK$0／HK$20,000／HK$50,000／HK$80,000
Full Compensation Items	No full compensation items			Full compensation3 on eligible medical expenses such as diagnosis, hospitalization, surgery and prescribed non-surgical cancer treatment
Suitable For	Those who have basic hospitalization medical insurance with a budget	The compensation rate in the past is as high as 90%⁴, suitable for those who pursue cost-effective and do not have any medical insurance	Suitable for those who do not have any health insurance and require semi-private ward services	People who hold other medical insurance policies with deductible Top-Up medical protection	Those who have high requirements on the treatment environment and services

<sup>¹Assuming the insured is a 30-year-old non-smoking male

² With 20% co-insurance; only applicable to the insurance items marked with SMM in this plan.

³ The Bowtie Pink Voluntary Health Insurance Scheme fully pays for eligible medical expenses such as diagnosis, hospitalization, surgery and prescribed non-surgical cancer treatment (except in the United States), subject to the annual benefit limit and lifetime benefit limit. If the claim involves a Chinese hospital that is not on the list of designated hospitals in Mainland China / a high-end hospital within the list of designated hospitals in Mainland China / exceeds the designated ward level / pre-existing diseases before applying for insurance, the relevant compensation amount may be adjusted. Please refer to Sections 1(b), 1(c) of the First Supplement and Section 6.4 of the Terms and Conditions for details.

⁴ As of September 2021, the compensation rate for Bowtie VHIS Flexi (Regular) is 90%.</sup>