Press Releases
Second stage public consultation on healthcare reform launched(with video)
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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