China is an economic giant now, second only to the USA in wealth. Millions of expats from all across the world are therefore entering the country as jobholders or small entrepreneurs. However, most of them face some difficulty when it comes to the question of health. There are very few Chinese hospitals that are properly equipped as per Western standards. China does not pay for the health coverage of its expats so expat patients have to rely on their savings or health insurance. Expats are therefore totally dependent on making sure they have adequate health insurance.

Since China started to relax its trade rules to attract overseas business in the last 6 or 7 years, it has encouraged a growing number to enter the Mainland.  The same rules do not apply in Hong Kong as the Special Administrative Region benefits from a relative free market economy, so there is much more choice available. It is not as difficult as some might imagine to set up a properly licensed insurance entity in China.  On the contrary, most of the big players in the private health insurance sector believe that they will face little resistance as long as they follow the regulation and proper procedures.

The expats usually use the international private hospitals when they need them. Most of the government services are stretched beyond their limits and staff do not understand any other language except Chinese. All these factors make it almost impossible for the expats to check into the cheap health facilities. Of course, an expensive Western hospital in China means more expense. That is why the expats in China need to have international health insurance, especially if they intend to stay for a year or more.

Medical insurance for expats is not a necessity for entering China though. Although the Chinese embassies demand proof of health before issuing a visa to students, executives are exempted from it. However, the expats usually opt for international medical cover instead of relying on the local Chinese policies.

Expats are known to go for two distinct types of health insurance in order to afford their medical expenses. They can be categorised as:

• Licensed international policies that provide cover anywhere in the world and include a host of other benefits as well, and
• International policies also sold by reputable companies in spite of being unlicensed. These plans are generally not available in RMB and are not legitimate taxable expenses, whereas licensed plans are.

Premiums vary from company to company though and there is no uniformity. Expats should, therefore, check out every detail and read the fine print before going ahead and buying health insurance.